Condo Market in Richmond in Real Trouble.

I don’t have a crystal ball as I have said before, but I think the condo market in Richmond is headed for real trouble. And no, it’s not because we handle Leasing and Property Management of condo buildings, but because of the numbers. Most of these projects are priced for sales anywhere between $150 per sq. ft. and $200 per sq. ft. The problem is I am seeing really nice units come on the market at $125 per sq. ft. Those are great deals for first time buyers, but a nightmare for anyone looking to resell a unit or for developers looking to finish their projects. On top of that, Mortgage guidelines for condos are getting tighter and tighter making it harder to get financing for projects not yet complete. The only good news on this front that I can report is that the rental market is really strong and we are renting 2 bedroom units for $1200 -$1500.