Richmond Virginia Real Estate Market - February 2018

March 19, 2018

 

The real estate market in Richmond Virginia continues to be exceedingly tight!  I know I say that each month - and every month I am surprised by how tight the market continues to remain!  Several times a day I pull up what we call a "hotsheet" - the list of all the properties that are new to the market, back on the market, under contract, expired, closed, withdrawn, released!  And each day, the number of homes that are under contract as soon as they hit the market continues to well outpace the number of homes that are new to the market!  Very few homes are expiring or are being released or withdrawn!  There are some that are coming back on the market - but not many!  So we see that the market continues to be very very tight!  Below are the statistics for the month of February 2018!

 

Chesterfield County

  • # Homes Sold:  362 (up 15% from last year)

  • # Homes Active on the Market:  1,032 (down 17% from last year)

  • Median Sales Price:  $255,500 (up 6% from last year)

  • Days It Took For Homes To Go Under Contract:  45 (down 21% from last year)

  • # Homes Newly Listed in February:  631 (down 13% from last year)

  • # Homes Under Contract in February:  542 (no change from last year)

  • Sales Price vs. List Price:  100.3% (no change from last year)

  • # of Months of Supply of Homes:  2.9 (down 28% from last year)

Hanover County

  • # Homes Sold:  102 (up 24% from last year)

  • # Homes Active on the Market:  327 (down 16% from last year)

  • Median Sales Price:  $283,712 (up 5% from last year)

  • Days It Took For Homes To Go Under Contract:  55 (down 18% from last year)

  • # Homes Newly Listed in February:  174 (down 24% from last year)

  • # Homes Under Contract in February:  142 (down 12% from last year)

  • Sales Price vs. List Price:  99.5% (no change from last year)

  • # of Months of Supply of Homes:  3.2 (down 33% from last year)

Henrico County

  • # Homes Sold:  278 (up 5% from last year)

  • # Homes Active on the Market:  617 (down 21% from last year)

  • Median Sales Price:  $220,000 (down 4% from last year)

  • Days It Took For Homes To Go Under Contract:  42 (down 21% from last year)

  • # Homes Newly Listed in February:  525 (up 5% from last year)

  • # Homes Under Contract in February:  439 (up 5% from last year)

  • Sales Price vs. List Price:  99.3% (up 1/2% from last year)

  • # of Months of Supply of Homes:  2.2 (down 25% from last year)

City of Richmond

  • # Homes Sold:  172 (down 5% from last year)

  • # Homes Active on the Market:  310 (down 26% from last year)

  • Median Sales Price:  $200,000 (up 2% from last year)

  • Days It Took For Homes To Go Under Contract:  41 (down 11% from last year)

  • # Homes Newly Listed in February:  275 (down 6% from last year)

  • # Homes Under Contract in February:  276 (up 2% from last year)

  • Sales Price vs. List Price:  97.5% (up 1/2% from last year)

  • # of Months of Supply of Homes:  1.8 (down 22% from last year)

Conclusion

As you can see from the above, inventory levels continue to be very very tight.  If you look at the Months Supply of Homes, what this number tells you is how long it would take for all the currently listed inventory of homes to sell.  Most people feel that a 6 months supply is a balanced level of inventory - that would be saying that if nothing else is listed for sale, it would take about 6 months for those homes to sell.  As you can see, with the exception of Henrico County, most of the areas have less than 3 months of available inventory of homes for buyers to choose from!  And in the City of Richmond it is even less, with less than 2 months of inventory!

 

As you can also see, at the end of the month of February, the number of homes available for buyers to choose from was way down from what it was a year ago!  Although there were new listings to the market, most of these were going under contract fairly quickly!

 

The median sales prices of homes sold rose in all areas except Henrico County!  And, finally, if you look at the sales price vs. the list price, you will see that sellers were getting almost what they were asking for their homes, many with multiple offers!

 

What Does It Mean For Sellers?

If you are thinking of selling your home, now is a good time.  With interest rates possibly rising in the near future, buyers are out there looking for homes.  And there is very little for them to choose from!  So when a new listing comes on the market, buyers will try to get out to these homes as quickly as possible.  But buyers are still very picky when it comes to the house that they will ultimately buy!  The home has to be priced right to begin with - it is not a market that a seller can say "Let me overprice my house and I can always bring down the price if it doesn't sell!".  This is a bad strategy!  Why?  Buyers also look at how long your home has been on the market!  Buyers know how long it is taking things to sell in your area!  And if they see that your house has been on the market a much longer time than other comparable homes that have sold, they may think there is something wrong with your home and offer you less than they would have if it had been priced right from day one!

 

Not only does it need to be priced right, but it does need to show well!  I recommend that you bring in a stager before you actually are ready to list your home for sale!  Do the things that the stager recommends so that your home shows in it's best condition!  In this market, if your home is priced right to begin with, and shows very well, the chances of it sitting on the market for a long time is small!

 

I also recommend that you have a pre listing inspection done before listing the house!  Then get the repairs done before listing!  Why?  Sometimes, if you have a pre listing inspection and receipts for the repairs that were made, a buyer will feel more comfortable with paying top dollar for your home!

 

Finally, have professional photos taken of your house!  Why go to all the trouble of pricing your home right to begin with, having the stager come in to stage the home, do everything the stager tells you to do, and then have unprofessional, or crooked, or dark pictures taken of your home!  Your home will not show the results of all your hard work online if the pictures are bad!!!

 

What Does It Mean For Buyers?

This market is a tough market for buyers!  Buyers who are not ready to jump on a home as soon as it hits the market may find that the house they want is no longer available!  This means that you need to have a strong pre approval letter from a local and reputable lender, and you must be comfortable with the market and what sellers are asking for their homes!  And it may also mean that if you are in a multiple offer situation, you may need to offer over asking price for a home, or even add in some sweeteners to your offer (inspections, financing, rent backs for the seller, flexibility on closing date, etc).  When a seller gets more than one offer, they are looking at everything - so the stronger your offer (price & terms) can be the better it is for you! 

 

If you are thinking of selling your home, or if you are thinking of buying a home, or you just have a question about real estate or the real estate market in your area, don't hesitate to let me know.  I would be happy to answer!

 

And if you would like to have a Market Analysis for your home, feel free to CLICK HERE!  Have a great day!

 

 

 

 

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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