Most of the greater Richmond real estate market experienced an increase in median sale prices in March, according to the Long & Foster Market Minute reports. The Richmond region includes Chesterfield, Henrico, Goochland and Hanover counties and the city of Richmond.
The number of homes sold rose in a few areas of the Richmond market in March, including in Goochland County where it increased by 40 percent. Most areas of the region experienced an increase in the median sale prices. In Richmond City, the median sale price increased by 14 percent, followed by Henrico County with a 9 percent increase.
Active inventory declined in most of the region in March, although Goochland County experienced a 9 percent increase. Other areas experienced decreases of 17 percent to 28 percent. Homes sold at a steady pace, with the region seeing days on market averages ranging from 35 days to 67 days.
“There’s never been a better time to sell,” said Gary Scott, president of Long & Foster Real Estate. “Though in some areas, the choices of where to go are challenging due to the lack of inventory. The Richmond region’s real estate market has remained healthy and has weathered these challenges well.”
Scott said one group of homeowners who could benefit significantly by selling is those who became landlords during the recession because they were underwater on their mortgage. Putting their home on the market now would help them maximize the return on their investment.
Some homeowners are trying to maximize the sale of their property by listing it with a discount brokerage, but that could end up costing them more, Scott warns. The barrier to entry to get a real estate license is fairly low, and the cost of discount brokerages is often reflective of the skills and services offered. A home seller may pay a lower commission, but their agent may not be as skilled in negotiations or be as knowledgeable about real estate contracts.
“When hiring a real estate agent, you want to ask them result-oriented questions,” Scott said. “Ask them what percentage of their listings sell, what their list-to-sale price ratios are, as well as the difference between a home’s original price and its sale price. Just because a real estate agent lists a lot of homes doesn’t mean they’ll provide the level of service that’s best for each client.”
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.