Richmond Virginia Real Estate Market Activity - September 2024!

The Richmond Virginia real estate market continues to be a very tight sellers market - where the supply of homes for sale continues to be very low, while buyer demand continues to be very high.  This tight sellers market of low supply and high demand continues to put pressure on prices and prices continue to appreciate.  

Central Virginia Richmond MLS Area

Chesterfield County

Hanover County

Henrico County

City of Richmond

Conclusion

• Supply of homes for sale continues to be very limited!
• But buyer demand for these homes continues to be very high!
• Which is putting pressure on prices and allowing prices to continue to appreciate!
• This means we are currently in a tight seller's market!
• But we are moving more towards a more neutral market!
• Months supply of inventory throughout the metro area is at 2 months - a slight increase from last year at this time of 1.9 months.  
• In September 2024, the number of homes that went under contract (but have not yet closed) was 1,682 - almost 17% higher than the number of homes that went under contract in September 2023 (1,439).  This indicates that as rates fall, some buyers who were previously sidelined by the higher interest rates are coming back to the market!
• Throughout the area, with the exception of Hanover County, homes tended to sit on the market a little bit longer than they did in September of 2023.  
• Looking at time on the market for the past several years, in 2021 homes were on the market an average of only 13.3 days, in 2022 homes were on the market an average of only 11.9 days; in 2023 homes were on the market an average of 24 days; and in 2024 homes were on the market, on average, 29 days!
• Although sellers continue to get above their asking prices for those homes that closed in September 2024, it was slightly less than they go in September 2023 (September 2024 sellers got, on average, 100.5% of their asking price, while in September 2023, sellers got, on average, 101.3% of their asking price)

Although the fall/winter seasons have, in the past, tended to be a much slower selling season, with the Richmond real estate market continuing to be a very tight seller's market with low inventory, and, as buyers begin to move off the sidelines and try to purchase a home, it may be a great time to put your house on the market.  The same day that the Fed cut their interest rates, Fannie Mae released their predictions that mortgage rates would be at 6.2% by the end of 2024 and 5.7% by Q4 of 2025.  I think that most people realize that we are not going back to 3% interest rates, and when they need to move, hopefully the interest rate will be a lower interest rate than what we saw at the beginning of 2024.

If you are thinking of selling your house, or you are thinking of buying a home, don't hesitate to reach out and let's talk and come up with a game plan to help you with your real estate needs!