Richmond VA Area Market Update - June 2022
The real estate market here in the Richmond area continues to be very tight, although there is a very very slight cooling down. I am continually being asked if the real estate market will end up in a downturn as we saw in 2008. No one has a crystal ball, so it is hard to predict, but the best thing to do is to keep an eye on the real estate market stats for your area, as all real estate, even in the Richmond area, is local and there can be lots of differences between areas.
So let's look at the real estate market stats for the Richmond area.
As you can see, in all 3 locations, the number of homes that sold in June 2022 was well below the number of homes that sold at this same time last year! But the average sales price had significant appreciation from the average sales price last year! Last year it took less than a month for those homes to go under contract - we are still seeing less than 2 weeks for a home to go under contract in the area! This tells you that inventory levels still are extremely low for our area - for instance, in Henrico County you have only 6/10 of a month for all the homes that are currently on the market to go under contract, while in Chesterfield County and the City of Richmond you have only 7/10 of a month for all the homes on the market currently to go under contract! Because of this very low inventory levels, you are still seeing homes selling above their asking price.
How low is the inventory levels right now, on July 4, 2022?
In Henrico County, there are currently only 230 homes active on the market with another 51 homes in a coming soon status, which means there are only 281 homes available for the buyers to choose from in the entire county - but there are 725 homes that are currently under contract but not yet closed!!!
In Chesterfield County, there are currently only 350 homes active on the market with another 83 homes in a coming soon status, which means there are only 433 homes available for buyers to choose from in the entire county - but there are 1,138 homes that are currently under contract but not yet closed!!!
In the City of Richmond, there are currently only 306 homes active on the market with another 35 homes in a coming soon status, which means there are only 341 homes for buyers to choose from in the entire City of Richmond - but there are 422 homes that are currently under contract but not yet closed!!!
Even with interest rates reaching levels we haven't seen in quite some years, buyers are still looking and writing offers. When you look at the average number of showings that it took for a home to go under contract, it didn't take many!
So if you are thinking of selling your home, the market is still a great time to sell - buyers are out there looking and are motivated. But we are now seeing an increase in the number of listings which are now expiring without having sold. And we are starting to see more price decreases being taken by sellers. This means that your home needs to be priced right as many buyers are not willing to overpay for a home. Many buyers are also not as willing to give up on the appraisal or are willing to pay any amount above a low appraisal just to get the house. We are also not seeing as many buyers willing to completely forego a home inspection, unless the house is properly priced to reflect the condition and repairs needed.
With the market conditions beginning to change, it is more important than ever to keep up with what is going on in your neighborhood. We are starting to see shifts in the market and if you are thinking of buying or selling in this shifting market in the Richmond area, it is more important than ever to know what is happening in your area. Feel free to let me know if you would like a detailed analysis of the real estate market in your area and neighborhood!