Richmond Virginia Real Estate Market - October 2017

November 17, 2017

Well, we are now almost at the end of 2017 and the real estate market in Richmond Virginia continues to be very strong thoughout!  Below, please find the recent market stats for October 2017 (compared to October 2016).

 

 

City of Richmond Virginia

# Homes Sold:  221 in October 2017 (up 12% from last year)

# Homes On Market at Month End:  470 homes available (down 33% from last year)

Median Sales Price:  $215,284 in October 2017 (down 10% from last year)

Days on Market Until Contract Accepted:  31 days in October 2017 (down 21% from last year)

# New Listings in October:  301 (up 5% from last year)

# Contracts Accepted in October:  271 (up 31% from last year)

Sold vs. List Price:  Sellers got 99.4% of their asking price (up 1.7% from last year)

Months of Supply of Inventory:  2.1 Months (down 40% from last year)

 

Chesterfield County Virginia

# Homes Sold:  458 in October 2017 (down 1% from last year)

# Homes on Market at Month End:  1,371 homes available (down 19% from last year)

Median Sales Price:  $237,718 in October 2017 (down 1% from last year)

Days on Market Until Contract Accepted:  40 days in October 2017 (down 9% from last year)

# New Listings in October:  653 (up 8% from last year)

# Contracts Accepted in October:  539 (up 22% from last year)

Sold vs. List Price:  Sellers got 99.8% of their asking price (no change from last year)

Months Supply of Inventory:  3.0 Months (down 19% from last year)

 

Hanover County Virginia

# Homes Sold:  141 in October 2017 (up 21% from last year)

# Homes on Market at Month End:  451 homes available (down 8% from last year)

Median Sales Price:  $296,000 (up 9% from last year)

Days on Market Until Contract Accepted:  36 days in October 2017 (down 47% from last year)

# New Listings in October:  220 (up 33% from last year)

# Contracts Accepted in October:  147 (up 31% from last year)

Sold vs. List Price:  Sellers got 98.9% of their asking price (down .5% from last year)

Months Supply of Inventory:  3.2 Months (down 24% from last year)

 

Henrico County Virginia

# Homes Sold:  442 in October 2017 (up 20% from last year)

# Homes on Market At Month End:  840 homes available (down 27% from last year)

Median Sales Price:  $220,500 (down 4% from last year)

Days on Market Until Contract Accepted:  34 days in October 2017 (down 23% from last year)

# New Listings in October:  506 (up 8% from last year)

# Contracts Accepted in October:  480 (up 37% from last year)

Sold vs. List Price:  Sellers got 99% of their asking price (no change from last year)

Months Supply of Inventory:  1.9 Months (down 39% from last year)

 

So what do all these numbers mean?

 

*  The number of homes sold is an indication of how sales activity was in October 2017 vs. last year.  As you can see, in the city of Richmond, Hanover & Henrico Counties, sales activity continued to be strong.  In Chesterfield County, however, it remained about where it was last October.  This tells me that there are still buyers out there looking for homes.  

 

*  The number of homes on the market at month end is also another good number to look at.  Here, you can see that the number of homes that were on the market, available for buyers to choose from, was way down from what was available at the same time last year!  This number is impacted by a number of different things:  the number of homes sold in October was up for the most part throughout the area, but even though the number of new listings that were taken was up in October, the number of new contracts was up even more significantly throughout the area!  All of these things contributed to a continuing tightening of the inventory available for buyers to choose from!

 

*  The median sales price did show a softening everywhere but in Hanover County.  This would be a number to keep an eye on in the future months.

 

*  The number of days on the market until a contract was accepted continues to decrease.  This is the effect of tight inventory - showing that if a seller prices their home right to begin with, with buyer activity still strong in October, those homes will go under contract very quickly!

 

*  The sold vs. list price continues to be close to 100% throughout the area!  Again, if sellers are pricing their home within the market, with the tight inventory we continue to see, sellers will get at or above their asking prices!

 

*  Finally, we see that throughout the area, the months supply of inventory continues to be extremely low, showing that we are in a strong sellers market!  This number tells us that, if no other homes come on the market for sale, it would take so many months for those homes to sell.  In Henrico County, for instance, it would only take less than 2 months to sell!  Most economists will tell you that they feel that a 6 months supply of inventory would be considered a balanced real estate market!  Anything below that and it is considered a sellers market - meaning that there are more buyers looking for a house than there are houses for them to choose from!  Conversely, if the number is above 6 months, then this is a strong buyer's market, meaning that there are more houses on the market for sale than there are buyers to buy those houses!

 

Conclusion

So if you are a seller in the Richmond area, does this mean that you can ask anything you want and be assured of getting it?  Absolutely not!  It does mean that you still have to price your home within the market value for your area - it means that your home needs to be in pristine show condition & good repair if you want to get top dollar!  Buyers are still out there looking and buying - but they are picky about what they will pay top dollar for!

 

And if you are buying a house, you may not be able to find the "deal of the century", especially in some areas where the inventory is not quite as tight as it is in other areas!  But if you are looking in one of the areas or neighborhoods where there are lots of other buyers looking, you may have to pay full price, or even over asking price, to get the house you want!  It does not matter what the seller may have paid for the house before, if it is priced within the market value today, and shows well, and is in good repair, you may have to pay full price (or even over asking price)!

 

 

Thinking of buying a home?  Thinking of selling your home?  Have a question about the real estate market?  Want to know what your home is worth?  Feel free to contact me and I would be happy to help!

 

 

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Barbara A. Reagan

ABR, GRI, CRS, SFR

Long & Foster Realtors

2931 Polo Pkwy

Midlothian, VA  23113

Phone:  804-869-1191

Email:  BReagan2@gmail.com

Barbara A. Reagan - Long & Foster Realtors - 2931 Polo Pkwy - Midlothian, VA  23113