Richmond Real Estate Market Trends: A Closer Look at 2024

Richmond Real Estate Market Trends: A Closer Look at 2024

In real estate, it’s one thing to look at monthly stats, but a deeper dive into market trends gives us a clearer picture of what’s really going on. This year’s market in Richmond has certainly been one for the books! As someone with nearly 30 years in Richmond’s real estate world, I’ve seen my share of shifts, but the combination of high interest rates, low inventory, and lingering effects from the pandemic have created a truly unique landscape.

So, let’s break down some of the key trends shaping Richmond’s real estate market this year.

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1. Average Sales Price

Average sales prices have continued to rise year-over-year, but there’s more to the story. Though the average sale price in October 2024 was higher than October 2023, we’re seeing a downward trend. For example, the average sale price in June 2024 was $478,721, which dropped to $450,101 by October—a 6% decrease. This softening in prices could signal a shift in the market.

2. Are Sellers Getting Their Asking Prices?

In October 2024, sellers received an average of 100.4% of their asking prices. Compare that to April 2022, when sellers were getting 106.1% on average, reflecting the pandemic-driven demand. This year, the trend started at just under 100% in January, climbed to just under 102% by April, then began to taper off. It’s a sign that while buyers are still willing to pay close to list price, the competitiveness has softened a bit.

3. Showings Per Listing

The number of showings per listing is a good indicator of market activity. Back in March 2022, listings averaged 14.1 showings, with homes often receiving back-to-back viewings and even lines at open houses. Fast forward to January 2024, and that average had dropped to 6.3 showings. By March it climbed to 7.5, but as of October, it’s settled back to 5 showings per listing, a clear signal of a slowing market.

4. Newly Listed Homes

Inventory is a crucial piece of the puzzle. October 2024 saw 2,046 new listings, a slight increase from October 2023’s 1,925 but still below the June 2022 peak of 2,681. In 2024, we started with just 1,640 new listings in January, hit a high of 2,315 in May, and then began to see a monthly decline. Many homeowners may be holding off due to high interest rates, especially if they secured a lower rate in prior years.

5. Active Listings at Month-End

The number of homes actively for sale increased during the pandemic, reaching a high of 3,230 by July 2024, before dipping to 3,171 by October. This trend suggests that while supply is more abundant than before, it’s leveling off, contributing to a gradual softening in market dynamics.

6. Pending Sales

Pending sales reached a high of 2,316 homes in May 2022, but we haven’t returned to those levels. In January 2024, there were 1,380 pending sales, which increased to 1,843 by April before gradually declining to 1,648 in October. Higher interest rates and price pressures seem to be keeping some buyers on the sidelines.

7. Closed Sales

Closed sales saw their peak in June 2022 with 2,376 closings, but 2024 is showing lower activity. January 2024 had just 974 closings, which rose to 1,915 by May, then tapered off again, reaching 1,624 in October. This is a natural trend as we move through the seasonal slow-downs, but it also reflects a more cautious buyer base.

8. Average Days on Market

Houses are staying on the market slightly longer. In January 2022, homes took an average of 23 days to sell. By October 2024, that number was up to 31 days. This is another sign of a cooling market where buyers are taking a little more time to make their decisions.

9. Months Supply of Homes

Finally, let’s talk about inventory supply. A balanced market generally has 4–6 months of supply, but Richmond is still in a strong seller’s market. Inventory was just 1.4 months at the end of 2022, edging up to 1.7 months in early 2023. In 2024, we started with 1.7 months of supply, which rose to 2.2 months in July and now sits at 2.1 months as of October. This gradual increase shows a slight shift toward balance but underscores that inventory is still relatively tight.

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This year’s market has been a unique experience, and while trends show a slight cool-down, it remains a seller’s market here in Richmond. As we move into 2025, it will be interesting to see how these trends continue to evolve. Whether you’re buying, selling, or just keeping an eye on the market, these trends are helpful indicators of what to expect as we navigate this changing landscape together.

If you have been considering making a move, or you just want to know what the trends are in your area or neighborhood, feel free to get in touch and let's chat!  

PS - As a way of giving back, I am excited to announce that for every home I help buy or sell, I will make a donation to the charity of your choice. Whether it's a local organization making a difference in our community or a cause that’s close to your heart, this is my way of saying thank you for trusting me with your real estate journey. Together, we can make a positive impact on both your homeownership dreams and the lives of others. Let’s find your dream home—and make a difference along the way!