Richmond VA Real Estate - Still Hot!
Updated: Apr 26, 2022
Welcome to my monthly report on the Richmond Virginia real estate market. In this monthly report, I will review the recent real estate market stats for the Richmond area as well as any current trends!
So welcome to the February 2022 market report for the Richmond Metro area. The Richmond Metro area includes Henrico, Hanover, Chesterfield counties as well as the City of Richmond!
So, how was real estate in February 2022? In a very short word - hot!
Listings are still at record lows - at the end of February 2022, there were only 713 homes available for sale - in February 2021 there were 1,289 homes for sale and in in February 2020 there were 2,340 homes available for buyers to look at!!!
And there are not nearly as many homes coming on the market as in previous years! In February 2022 there were only 1,275 homes listed for sale - compare that to February 2021 when there were 1,364 homes listed for sale and in February 2020 there were 1,652 homes listed for sale!
Because there is so little inventory for buyers to choose from, the number of showings each house receives is way up! In February 2022 there was an average of 18.5 showings per listing - compare that to February 2021 when there was 13.9 showings per listing and in February 2020, there were only 7.3 showings per listing!!!
Because of the heavy buyer activity out there, home prices have seen rapid increases in the median home values - in February 2022, the median price of a home sold in the Richmond Metro area was $340,000; in February 2020, the median sales price of a home was $259,000!
Homes are definitely going under contract very very quickly - in February 2022, homes stayed on the market an average of only 6 days, while in February 2020, homes were staying on the market an average of 17 days!!!
So looking at these statistics each month, we see that the trend continues to be a hot real estate market ahead of the spring selling season! Inventory continues to be a an all time low. Prices are being bid up to unheard of prices, and this is leaving many first time homebuyers behind! The shortage of homes is boosting demand and leading to bidding wars which is causing prices to continue to skyrocket!
So if you are a home buyer, what are you having to do to compete in this market? There are many things that buyers are having to do! If you are a first time homebuyer, you need to decide what you are willing to do to get into a house in this market! Here are some of the things that buyers are doing to be the winning bid on a home!
Pay over asking price! In this market, even if you feel that the list price is above the market value, you need to go above the asking price! How much you go is your decision, but in this market, offering the asking price will not get you the home!
Waive or modify the appraisal contingency! If you are paying cash for a house, an appraisal is not necessary! But if you are getting a loan, your lender will most likely require an appraisal! But many buyers are agreeing to make up all or a portion of the difference between the purchase price and the appraised value, if the appraisal comes in low. You need to decide if this is something you are willing to do, and if so, how much you are willing to contribute to an appraisal differential!
Waive or modify the inspection contingency! You may decide to forego getting an inspection done on the house. This isn't always something I recommend, but many buyers are doing it! You may decide to hire an inspector to come with you when you look at the house to make you feel more comfortable about waiving inspections! The other alternative is to put in an appraisal contingency but perhaps limit the items you will have inspected or agree to absorb some of the repair costs! You need to decide how you want to handle the inspection contingency!
Allow the seller to retain possession of the house at no charge! For some sellers, this may be a perk if they are allowed to retain possession of the house for a few weeks to as much as 2 months after closing to be able to close on another house and move out! You need to decide if you are able to offer this to the seller!
These are just a few things that buyers are having to do to get a house in this market! So if you are thinking of buying a house, let's sit down and talk about this crazy real estate market! And if you are selling a home, feel free to contact me to see just what the real estate market in your area is doing!