Richmond Virginia Real Estate Report - April 2018

May 21, 2018

 

Well, we didn't get much of a spring - and now it looks like we are coming into our typical hot Richmond Virginia summer!  And, not surprisingly, the real estate market here continues to be on fire!  Just how hot is our real estate market?  Here are the real estate stats for April!

 

 

Chesterfield County

  • # Homes Sold:                                      528 - up 3% from last year

  • # Active Listings at Month End:      1,173 - down 15% from last year

  • Median Sales Price:                             $251,250 - up 7% from last year

  • Days on Market:                                   37 - up 3% from last year

  • # New Listings in April:                       887 - up 1% from last year

  • # Homes Under Contract in April    714 - up 12% from last year

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

  • Months Supply of Homes:                  2.2 Months - down 17% from last year

Hanover County

  • # Homes Sold:                                      141 - down 10% from last year

  • # Active Listings at Month End:      376 - down 12% from last year

  • Median Sales Price:                             $285,000 - up 2% from last year

  • Days on Market:                                   42 - no change from last year

  • # New Listings in April:                       277 - up 23% from last year

  • # Homes Under Contract in April    213 - up 18% from last year

  • Sales Price vs. List Price:                    99.7% - up .6% from last year

  • Months Supply of Homes:                  2.7 Months - no change from last year

Henrico County

  • # Homes Sold:                                      438 - up 7% from last year

  • # Active Listings at Month End:      697 - down 21% from last year

  • Median Sales Price:                             $261,675 - up 12% from last year

  • Days on Market:                                   23 - down 23% from last year

  • # New Listings in April:                       605 - down 7% from last year

  • # Homes Under Contract in April    552 - up 3% from last year

  • Sales Price vs. List Price:                    100.1% - up .6% from last year

  • Months Supply of Homes:                  1.6 Months - down 26% from last year

City of Richmond

  • # Homes Sold:                                      261 - no change from last year

  • # Active Listings at Month End:      355 - down 28% from last year

  • Median Sales Price:                            $222,000 - down 2% from last year

  • Days on Market:                                  21 - down 42% from last year

  • # New Listings in April:                      391 - up 1% from last year

  • # Homes Under Contract in April    366 - up 17% from last year

  • Sales Price vs. List Price:                    100.4% - up .7% from last year

  • Months Supply of Homes:                  1.4 Months - down 29% from last year

This tight real estate market continues to be the new norm!  The most telling sign of a tight market is the Months Supply of Homes - it means that if no new listings come on the market, it would only take a certain amount of time for all existing active listings to sell - in the case of the City of Richmond it would take 1.4 months!  Most real estate experts say a balanced market is one in which there is a 6 month supply of homes!  Anything less than 6 months is a Seller's market (meaning too many buyers for too few homes) - anything more than 6 months is a Buyer's market (meaning too many homes for too few buyers)!  

 

Other telling signs of this tight real estate market - the prices continue to go up, the sale price vs asking price is almost at or above the sellers asking price indicating multiple offers, the days on the market continue to drop indicating that as soon as a home is hitting the market it is most likely going under contract and the percentage of homes going under contract is exceeding the percentage of new listings coming onto the market!

 

What does this mean for both buyers and sellers in our market place?  It means that buyers are out there - if a new listing comes on the market, buyers need to be ready to make a quick offer if it is a house they like; it means that a seller may or may not be willing to negotiate, so buyers need to go in with their highest and best right out of the gate!  And it means that even if comps don't necessarily support the sellers asking price, it is very possible that the seller will get their asking price!  

 

Buyers are competing with other buyers who are doing things like waiving inspections or taking the home as is but doing inspections; it means that many buyers are coming in as cash buyers; and it means that many buyers are waiving appraisal contingencies!

 

If you are a buyer, make sure you are ready to make a move!  I don't recommend waiving inspections, and I don't recommend waiving appraisals, but I do recommend finding other ways to sweeten your offer and make it strong - a pre approval letter from a local lender who has actually sent your credit & income information to underwriting, not nitpicking the seller on repairs, strong earnest money deposit, closing date flexibility - these are just some ways to sweeten and strengthen your offer to sellers!

 

If you are thinking of buying a home, or selling your home, or you just have a question or want to know what is happening in your area, feel free to contact me - 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