State of the Real Estate Market - May 2022 - Henrico County
Well, another month has passed and the market continues to be on fire! Here are the stats for Henrico County for the month of May 2022!
There are definitely some takeaways from the statistics here:
Prices Are Still Increasing - this is definitely true throughout all of the Richmond area and in Henrico County, you definitely see this. As you can see, the average sales price of the home sold in Henrico County in May sold almost $30,000 above the asking price! Last May, the average price of a home sold in Henrico sold about $20,000 over the asking price. By area, the increases were:
* Area 22 - this includes all of the Far West End, including Short Pump area - homes in May sold about 9.5% over asking price.
* Area 32 - this includes the Lakeside area and other neighborhoods in the northwest end of Henrico County - homes in this area in May sold about 7% above asking price.
* Area 34 - this includes Glen Allen, as well as the Nuckols Rd corridor and the Virginia Center Commons area - homes in May sold about 8% over the asking price.
* Area 40 - this is the east end of Henrico including Varina - homes here sold about 4% above the asking price.
* Area 42 - this is the east end of Henrico including Sandston - homes here sold about 3% over the asking price.
Time on the Market Continues To Be Very Low - in May 2021, it took, on average, 14 days for a home to go under contract, which was very fast! But in May 2022, it got even quicker - it took an average of only 10 days for a home to go under contract. In all areas of Henrico County, homes went under contract, on average, in less than 2 weeks!
The Number of Homes Selling Were Fewer This Year - Although there were fewer homes that sold in the month of May 2022 than in May 2021, in 2022 the number of homes sold has been increasing each month, even with higher interest rate hikes. Even if you track the number of homes that were pending at the end of each month in 2022, this is number is increasing each month. So although we have seen a slight cooling of the market due to higher interest rates and higher prices, homes are still selling.
Inventory Levels Still Remain Very Tight - As you can see, there are less than 300 homes that were either active or in a coming soon status as of June 3, 2022! But there were 718 homes under contract, which means that they are not available for buyers to look at. With 442 homes that closed in the month of May 2022, that means if nothing else were to come on the market (which we know is highly unlikely), then it would only take a few weeks for what is available to sell! A balanced real estate market would have around 4-6 months of homes available for sale!
As you can see, the market continues to be red hot! Even with interest rates at higher levels than we have seen in some time, buyers are purchasing. A majority of homes are selling above asking price, which indicates those sellers received multiple offers! I took a quick look at how these homes were purchased. Of the 442 homes sold in May 2022, the majority of these homes were sold to buyers who purchased them with cash (104 homes) or used conventional financing (273 homes). The remainder of these buyers had some sort of government financing (VA, VHDA or FHA).
If you have been thinking of selling your home, now is still a great time to sell. If the home is priced well, and shows well, it will sell and will likely sell with multiple offers and possibly above the asking price! But you need to have a game plan if you also plan to buy. And if this is your first home, you should sit down with your lender and your Realtor to make sure you have a game plan on how the best way to make your offer the strongest you can once you have found a home you wish to purchase.
Please feel free to contact me and let me know how I can help! And if you have any questions, don't hesitate to contact me!