Here are the latest trends to watch out for in our Richmond market.

I speak with friends, family, and clients all the time who ask me, “What’s happening in the real estate market?” We all hear what the media says and what our friends think, but it’s important to look at facts to determine what’s going on and how things may change moving forward. 

First among these is the number of new listings. For the majority of this year, the big talking point has been low inventory. While it’s still true that there is less inventory than the amount of buyer demand, we’re seeing a slight increase in the number of new listings hitting the market. As you can see on the graph at 1:05 in the video, new listings have jumped in the last three months. April, May, and June had over 2,000 new listings. Compared to the first quarter of 2021, this is a significant increase. Some of this is due to the normal seasonality we experience every year. Traditionally, more homes come on the market in the spring and summer months. This year that trend has been compounded by an increase in new construction. Thus, we’re seeing more inventory overall. 

The second is the average sale price. Home sale prices have been steadily increasing over the past six months, which is primarily due to high buyer demand and a shortage of inventory— your classic supply and demand scenario. The graph at 1:58 shows that the average sale price of Richmond homes has risen by over $40,000 throughout 2021. As of June, it stands at just over $380,000. This doesn’t mean all homes are selling high; it just means home values have increased at a rapid pace. Experts predict that home appreciation will continue to rise year over year, but it’ll slow to a rate of 3% or so by 2025. 

“If you’re planning on buying a home, your patience is starting to pay off.”

Third, mortgage rates are inching higher. They still remain well below historic norms, but experts predict they’ll increase more throughout next year. The latest quarterly forecast from Freddie Mac predicts the 30-year fixed rate to be at about 3.4% by the fourth quarter of this year and 3.8% by the end of 2022. As that rate goes up, home-buying power can actually decrease. If you’re in a position to buy a home, it’s best to take advantage of rates while they’re low.

What does this mean for you? If you’re planning on buying a home, your patience is starting to pay off. There are more options for homes and slightly less competition right now. The value of a home purchase will appreciate over time while your interest rate remains low. That said, it’s still important to work with a professional who can craft contracts and negotiate to help you to win the best deal. 

If you’re thinking of selling, high buyer demand and appreciation means we’re still in a seller’s market. However with more new listings and the expected slowdown of appreciation, it’s more important than ever to speak with a marketing professional such as myself to help you decide whether now really is the best time to sell. 

If you’d like to discuss how the current Richmond market impacts your plans to buy or sell a home, please contact me. My team and I look forward to helping you navigate the market now and in the future. Remember, it’s not the market—it’s the marketing that makes the difference.