Wow, I wonder how many of these agents would still give the same answers. I have a very hard time believing any answer an agent may offer because they are extremely biased. They want people to buy buy buy, it's how they survive. The Fan will continue to go down (hopefully by 15% more) for several reasons: Big companies have had big layoffs in the Richmond area (Genworth, Philip Morris, LandAmerica, and Capital One all cut high paying jobs and Wachovia Securities actually left the area along with 3k jobs). Job cuts = decreased demand for real-estate. Secondly, between 2004-2006 Richmond, The Fan particularly, experienced a 28% increase in home prices....since then they have only dropped 5%. The 28% increase is not sustainable, it increased on the coattails of the overall national real-estate bubble, but The fan doesn't seem to have gotten the message yet that the bubble burst. Sellers in this town are stubborn. For evidence of this, look at the average time homes have been on the market since 2008...the average is approaching 10 months and increasing. Also, look at the price originally asked for and then look at the price asked for 6 months later...many of these homes have only decreased 1-2% from original asking price. But heck, if the seller can afford to keep the house on the market and not drop the price, why not? Stubborn.

Dylan...You can't perfectly time a market when it comes to real estate. There's never been a better time to buy than right now. Great selection, low rates and motivated sellers. If you comfortable with a home, the price and your payment, buy it.
If you looking in the city, make sure you visit the Overlook. Brand new, Fan style homes with incredible views of the James River. Only a few left.
http://www.overlooktownhouses.com/

Sales are stronger in the Fan then in some other areas, but market conditions vary by condition and the quality of each individual house as well as its location and parking. A few sold the week they hit the market this month and others have been dragging on for months. Many of the reductions that you have noticed have not moved these properties because they don't solve some basic issues. They include location, neighbors, quality of or lack of renovation, bedroom and bath count and parking. Only a scarcity of inventory can overcome some of these obstacles for the sellers and that may not happen for a while. To better answer your question, this is not a bond or a stock you are buying, but a place to live. The market may go up or down in the short run, but that does not effect your use of the property. If you find a house you like (choose wisely), negotiate the best deal you can get and take advantage of favorable interest rates. If you have not found a good house in your price range, wait till something you like comes along, but don't get tied up in lease too long. George Cumming, Agent, RE/MAX Commonwealth

Dylan,
All the previous answers are correct, because you do not know it's hit bottom until it's over. It's the "hindsight is 20/20" concept that people are trying to prevent. So decide what you like a make an offer. You are incharge of your purchasing power and buyers like you determine the market value of homes. Your offer maybe accepted and you go away with a good price. You will need a realtor to help you by providing comparative pricing on homes so you can make an educated offer. Please call me if you do not have an agent. (804-290-8866) We will meet and plot out all your opportunities and I will provide an analysis of all the properties that you are interested in as well as any new properties that come on the market. We will visit the properties and chart your "likes and dislikes" There is never a buyer's fee because the seller pays the commission. I live in the city very close to the fan and would love to help you.
Hope this helps
Wythe

Dylan,

I agree that the market in The Fan has probably reached bottom, but that is a general statement.

If you work closely with an agent, you may locate a property that is a good to great value not because of the market conditions, but because the seller is highly movtivated.

It's hard to really make the analysis on your own without the help of an agent. A good buyer's agent will run a CMA (Comparative Market Analysis) on any particular properties you are interested before an offer is made to help you determine the best value.

Value shopping requires a bit of flexibility on your part as well since the "best value" may not have every feature you want.

Wayne

Buyers are now faced with a common dilemma in today's buyer markets. They often ask...
"If home prices are still going down, should I wait to purchase until later this year?"
The short answer is no. It's not smart to time the market. My advice to first-time, move-up, and relocating buyers: buy when it's the right home at the right time for you.

The Fan area is a unique area which should be a good investment area.
If you have any other questions, you can call or e-mail me

Hey there, Dylan -

My professional opinion is that the Fan District has already seen the "bottom." It did take some hits on pricing over the last year and a half, as most highly-accelerated areas did, but prices seem to be leveling off now and even appreciating. As long as you're looking to buy a home to live in for a while and not a quick flip, you'll do well to buy now while rates are good and there are lots of homes to choose from.