Homes Selling Quickly in Richmond as Inventory Declines

November 22, 2017

MarketMinuteLogo2017small
The Richmond residential real estate market saw a strong month, with brisk sales and declining inventory, according to the Long & Foster Market Minute reports. The Richmond region includes Chesterfield, Henrico, Goochland and Hanover counties and the city of Richmond.

Richmond-Market-Minute-Chart

 

Homes in the city of Richmond spent just a month on the market, while inventory declined by 33 percent and demand remained strong. The average sale price fell by 10 percent. Across the region, sales were strong, averaging almost a 21 percent increase in units sold, compared to last year.

“Richmond is a very strong market,” said Gary Scott, president of Long & Foster Real Estate. “Inventory is down, units sold are way up – everyone else has higher days on the market than Richmond.”

The next year is expected to bring more of the same conditions that currently characterize the region’s residential market: low inventory, low-but-increasing interest rates and strong demand.

Many homeowners bought or refinanced at historically low interest rates in recent years, and they won’t be eager to sell if the costs of borrowing go up, even as those entering the market hope to take advantage of still-low rates. Rising values might raise concerns about affordability, but they could also play a role in alleviating inventory challenges, as more homeowners who bought before the downturn gain equity and decide to sell.

“We believe the economic indicators will be very similar to what they have been,” Scott said. “Every month, more people in our regions are gaining equity because of increasing property values. So price appreciation is a positive, but it also has an adverse impact on affordability.”

The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.

Information included in this report is based on data supplied by Central Virginia Regional multiple listing service and its member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of CVR or Long & Foster Real Estate.