What to expect from the property prices in the Richmond housing market.

Recent headlines have suggested a decline in home prices. Today, I’m here to discuss the truth behind this.

While home prices in some areas across the country are dropping, it does not hold true for the Richmond metro area. Home price appreciation has indeed slowed down, but it's important to note that this doesn't signify a fall in home prices.

Imagine driving on I-95 or 64 at a rapid 90 miles per hour. Suddenly, you spot a state trooper with a radar gun around a curve. You hit the brakes to slow down, and it may feel like you're crawling, but in reality, you've simply slowed down to the speed limit. Similarly, in the housing market, the pace of price growth has decelerated.

At 0:54 in the video, you’ll see a graph that shows the average sales price. While the average home price in the metro Richmond area has experienced slight month-over-month declines, it remains 4% higher than last year. Furthermore, it has surpassed prices over the last five years.

“Home prices are expected to rise, and buyer demand remains robust.”

It's true that the 4.7% appreciation rate is less than the impressive 18% to 20% seen in 2020 and 2021. However, a slowdown in appreciation doesn't imply a long-term decline in home prices. A key indicator of market strength is the level of buyer demand.

Despite the increase in mortgage rates this year, buyers are actively participating in the market. The graph from ShowingTime illustrates a 56% increase in buyer traffic compared to pre-pandemic years. This demonstrates that qualified buyers are actively searching for homes, but there simply isn't enough inventory to meet their demand.

The bottom line is, if you're contemplating a move, now is an opportune time. Home prices are expected to rise, and buyer demand remains robust, indicating a healthy housing market in Richmond.

Should you have questions about the current market or are considering buying, selling, or investing in real estate, please call or email us. Our team is here to listen to your needs, provide you with valuable data, and help you devise a personalized exit strategy. And lastly, always remember: It's Not the Market...It's the Marketing That Makes the Difference!