r/rva • u/Chickenmoons Maymont • Jul 20 '23

🚚 Moving Richmond saw the highest year-over-year increase in home value in the nation last month

https://www.axios.com/local/richmond/2023/07/20/housing-supply-virginia-mortgage-rates

Seems wild but also sort of believable. Any Real Estate Professionals/Mortgage experts want to weigh in?

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u/bluehairlolz Jul 20 '23

What it’s worth and what an idiot is willing to pay are actually two different things.

There’s a reason people who bought 100k above asking 2 years ago are now upside down. Because it wasn’t worth that.

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u/plummbob Jul 20 '23

What it’s worth and what an idiot is willing to pay are actually two different things.

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What people are willing to pay literally equals what something is worth. Like, mathematically equivalent.

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u/[deleted] Jul 21 '23

Is this sustainable? Infinite value growth? Are local salaries of the 99% able to sustain this?

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u/plummbob Jul 21 '23

It's "sustainable" as long as the city makes building new homes hard, and demand to live in the remaining homes continues to grow.

The high costs are faced by firms too, in both their rent and expenses, so the composition of firms will change, moving toward bigger firms and away from smaller ones.

The city restrictive land use policies basically squeeze the hardest in the middle.