Areas of the Richmond region saw an increase in the number of homes sold in January, as reported by Long & Foster’s Real Estate Market Minute report. Goochland County saw the highest jump with a 21 percent increase, while Chesterfield County and Richmond City saw increases of 11 percent and 2 percent respectively. Median sale prices also rose in a few parts of the region, including an increase of 9 percent in Hanover County. With the exception of Henrico County, active inventory fell across the region.

The Long & Foster Real Estate Market Minute report for the Richmond region includes Chesterfield, Henrico, Goochland and Hanover counties, and the city of Richmond.

Lately, industry headlines have been touting increasing inventory of homes for sale, but they don’t tell the whole story, said Gary Scott, president of Long & Foster Real Estate. When broken down by geographic area or price point, consumers may see a very different picture.

“Inventory is up but, as we can see in the Richmond region, that’s not true for every part of the country,” Scott said. “Additionally, much of the new inventory is priced at the higher end of the market. Every area has its own unique factors, which is why it’s so critical to work with a hyperlocal expert who can help peel back the layers of information.”

He said while builders want to create more entry-level housing they’re in a difficult spot.

“We all know we need to deliver new housing at an affordable level, but the cost of land, the cost of labor and the cost of supplies are a problem,” Scott said. “Those variables we don’t have control over are putting us in a place where building lower cost homes is hard to do.”

In the last months of 2018, real estate industry experts were predicting rising mortgage rates for this year. Instead they’ve remained low, causing many to revise their projections.

“There are two things that motivate people when it comes to interest rates,” Scott said. “One is low interest rates rising, and the other is trending upward decline. Back when mortgage rates were 3.25 percent and trending downward, people were holding off on buying because they thought rates were going to go under 3. The minute they rose to 3.5 people jumped to lock in their rate.”

“The stock market has also leveled to some degree, and the more that stabilizes the better off we’ll be,” Scott said.

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.