New home builders in the Richmond, VA area have continued to face a challenging market but there does seem to be light at the end of the tunnel ? they hope it?s not an oncoming train! Home sales and housing starts seem to be getting some greater activity, although the monthly trends have been inconsistent.
At the end of previous years home listings have typically dropped to around 8,000 units. This past year (December 2011) home listings dropped below 6,000 indicating market demand is increasing and 
buying up the inventory. Additionally, at the end of 2011 the number of bank-owned foreclosures dropped by 35% from prior year. This is certainly good news for home sellers and new home builders in the Richmond, VA market.
However, all has not been so positive with new home construction and real estate trends in 2012. For example, in April there was an increase in sales compared to the prior year, and in May year-over-year sales were up a whopping 26%. However, June saw sales decline by about 2%. In June 2012, the average value of new homes saw a 9.3% rise year-over-year increasing to $322,193 per unit. This rise is smaller than the 10.9% gain in May 2012.
Out of all housing closings, new home closings accounted for 8.8%. This is an increase on a percentage basis, as new home closings were 7.8% of total closings a year ago. Closings of new and existing homes increased year-over-year in May after also rising in April year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size jumped 11.6% to $276,279 in May from a year earlier. Average mortgage size slipped 4.2% in April 2012 from a year earlier. The overall percentage of sale price that was being financed increased 2.1 percentage points year-over-year to 88.1% in May 2012. In April 2012, there was a 2.7 percentage point decline in April from a year earlier.
The average unit size of newly sold homes rose 1.2% year-over-year to 2,635 square feet in May 2012. In April, the average size of new homes sold went from 2,870 square feet a year earlier to 2,519 square feet.
Also to note is that the Richmond, VA market is performing better than the national market on several fronts including employment levels, real estate prices, foreclosure trends and the like. In fact, foreclosures comprise only about 6% of inventory. As home prices have dropped and new home builders have become more promotional and aggressive with their pricing, more people are able to enter the market to purchase existing and new homes.
Once again a group of new home builders in Richmond, VA market will participate in the annual parade of homes event to showcase their new designs, finishing options and new features. This event is held the first three weekends in October ? Oct. 6 and 7, Oct. 13 and 14 and Oct. 20 and 21 and covers the entire Richmond, VA area ? from Goochland to Henrico, Powhatan to Richmond proper. It will feature a variety of home styles and floor plans priced between $190,000 and $900,000. Whether you?re considering purchasing or building a new home, you?ll find what you need at the 61st annual Parade of Homes. Tour 49 new homes for the best selection in home designs, construction techniques and materials throughout the Greater Richmond area. Prices range from the $190?s to over $900,000.
Source: http://www.lifestylebuilders.com/news/updates/new-home-builders-in-richmond-va-2012-building-trends/
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