Mar 201914

Luxury Home Sales Rise 14 Percent in the Richmond Region in 2018

Mar 201914

Luxury Home Sales Rise 14 Percent in the Richmond Region in 2018

Long & Foster’s Year-End Richmond Region Market Report details real estate trends

A strong real estate market prevailed across the Richmond Region in 2018, with some notable characteristics. Inventory remained tight—down 13.2 percent in December 2018 compared with December of the prior year, according to the Long & Foster | Christie’s International Real Estate 2018 Year-End Richmond Region Market Report.

Overall unit sales declined modestly (0.7 percent) in 2018, though homes, in most areas, spent fewer days on the market than the year before. Of course, real estate is local and not all markets performed the same. Inventory of luxury homes—those above $750,000—dropped 11 percent, and sales increased an impressive 14 percent.

“For the coming year, we expect many of these trends to remain the same,” said Jeffrey S. Detwiler, president and CEO of The Long & Foster Companies. “The good news is that the U.S. economy continues to demonstrate growth, low unemployment and historically low interest rates, bringing homeownership in reach for many.”

Within the City of Richmond, luxury home sales increased 10 percent, although median sales prices were down 6.2 percent. Average monthly inventory declined 25.6 percent, while the days on market decreased 30.9 percent to 38 days.

Luxury real estate sales also remained strong in Henrico County throughout 2018, with units sold up by 9.8 percent and median sales prices down 2.5 percent. Average monthly inventory rose by 7.1 percent compared to 2017, while the average time properties spent on the market declined by 36.9 percent, selling much faster than a year ago.

In Chesterfield County, the median sales price of luxury properties sold in 2018 rose by 5.3 percent and the number of high-end homes sold grew by a modest 1.6 percent. Average monthly inventory of luxury homes for sale increased by 5 percent, while the average marketing time increased 46.5 percent.

Goochland County also experienced a significant jump in luxury home sales, seeing the number of high-end properties sold increase 41 percent in 2018. While median sales prices were down 9.6 percent and inventory grew 9.4 percent, luxury homes continued to sell quickly. The average days on market dropped 31.3 percent to 55 days.

In addition to highlighting major trends in the Richmond region, the Long & Foster | Christie’s Richmond Region Market Report spotlights individual neighborhoods. It also summarizes the local luxury market by the types of homes (for example, single family and townhomes) sold in individual neighborhoods, providing an in-depth analysis of the residential market. View the report in its entirety here.

For more information about Long & Foster, visit LongandFoster.com.