As with most of the Richmond Virginia area, the real estate market in May 2022 was still hot! Inventory levels were tight, even with higher interest rates buyers were out there, and bidding wars were not uncommon! Although we are seeing a teeny tiny slight cooling of the market, by that I mean that sellers will still get multiple offers - they may not see 50 but may see 5 or 10! So for the month of May, 2022, here are the market stats compared to May 202!
Prices Are Still Increasing - as you can see, prices are definitely on the rise. The average sales price of a home sold in Chesterfield County in May 2022 was 14.5% above the average sales price in May 2021, and it was almost 7% above the asking price for a home in May 2022. By area -
* Area 52 - this is south and eastern side of Chesterfield County, including the Meadowbrook area and the Chester area - homes sold an average of 6% above the asking price average of $326,752.
* Area 54 - this is south of Hull St., going as far south as Matoaca and Petersburg areas - homes in this area sold an average of 6% above the asking price average of $370,948.
* Area 62 - this area is in the western side of Chesterfield county and includes Midlothian - this area sold an average of almost 9% above the asking price average of $419,782.
* Area 64 - this is in the north west side of Chesterfield, Huguenot Rd. as well as Bon Air and to the City line - this area sold an average of 10% above the asking price average of $449,310.
Time on the Market Still Very Very Short - last May, homes went under contract in an average of 12 days - that has not changed at all in May 2022! But that is an extremely short period of time!
There Still Remains A Big Shortage of Homes To Buy - if you look at the active and coming soon listings that were on the market as of June 3, 2022, there were only 402 homes available for buyers to buy! In the month of May 2022, there were 568 homes sold! That means that if no other homes come on the market for sale, it would take less than 1 month for all these homes to sell! If you look at the pending sales, there are 1,177 homes that are under contract but not yet closed! Even with the higher interest rates homes are still selling, selling with multiple offers and selling well above asking prices! Looking at how people bought these homes, most were purchased with either cash (63 homes) or conventional loans (357 homes), the rest were purchased using government financing.
So what does all this mean if you are a seller, a seller looking to buy another home, or a first time homebuyer? It means that you will need to have a game plan before you even start the real estate process. You need to have financing in order, you need to know what you want in a home, where you will go once you have sold your home, and you will need to know just how much you are willing to spend on the home you buy.
With a real estate market this tight, a good Realtor and good Lender is going to be your best strategies. Feel free to reach out to me if you have a question or want to set up a meeting to discuss the market. My new number is 804-566-0781!