Knowing the pricing trend for older Richmond detached homes can help provide some useful insights on current market value for a home. Most home owners find it easier to relate the value of a home to its current city assessment value. There are other variables like the location, house condition and home improvements that will afffect the value of a home.
In the month of March, 2009 an analysis done on 28 older Richmond detached homes (over 30 years) revealed some interesting data.
Summary of data for homes sold in this study
| Time Period | No. Homes | Av. List Price | Av. Sold Price | Av. City Value | Sold/ List price
| Sold/ City value
|
| March/09 | 28 | $615,870 | $577,160 | $596,879 | -6% | -3% |
The above data showed the average selling price for these homes was 6% lower than their average listing price. When the average selling price was compared to their average city value, these homes were found to be selling at 3% below their average city value. An analysis based on competitive market evaluation for a particular neighborhood is normally used to determine the market value of a home. The value of a home is affected greatly by the location, home condition, and improvements done to the house. Homes that are more desirable will command higher selling prices.
Market value versus city assessment value
The City Assessment Value being a previous year's value is a lagging indicator. City Assessment Value tends to be lower than the market value in a rising market. During the boom years from 2005 to 2007, the selling prices for most homes were found to be 12% to 15% above the city assessment values. Conversely, when home prices are in decline for a protracted period, the market values for homes sold may be at or below their city assessment values.
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