Real Estate Market Updates

Well, the spring weather may be popping its head up here and there, but the spring market is definitely here! If you're wondering what the market is doing here in the Richmond and surrounding areas, here's a little breakdown, piece by piece... Price- We're always hearing lots of talk about prices here, there, and everywhere. But what are prices in Central Virginia actually doing? The median home price in our entire MLS (which covers a fairly broad area) closed out at $344,900 for March '23, only a bit over $3000 higher than March of '22, and down from a high of $363,000 back in May and June of last year. The average home price was $383,036, and that's an even more narrow difference year over year. Inventory- So year over year, our prices have crept up just a bit, but maintained very well. If you're thinking, "why?? I thought the media kept saying the market was going to crash," the answer is fairly simply supply and demand. Last March, there were 2445 new listings that came on the market. This year? Only 1929. That means close to 1/3 fewer homes from which to choose, and the buying pool has not decreased by nearly that much. If you've been following real estate, or the overall economy, in the last few years, you likely know that there are simply not enough housing units (single family, condos, apartments...you name it.) to satisfy the need of people who need a home. By and large, that's because builders just stopped building, went out of business, etc, during the mortgage crisis of 2007-'08. And while the buying and renting pool has continued to increase, they've simply never caught up. Also, over the past few years when rates have been between 2.5%-3.5%, nearly everyone refinanced or bought. Most of them are not likely to put their homes on the market if they don't need to. To go from 3% to 6% is just a jump a lot of people are not interested in making. Demand- There's no way at all for us to tell how many buyers are actually in the market, per listing, but we can tell that last year this time, the "average" home was getting 16 showings before it went under contract, and this year? That number has shrunk to only 12 showings this March. That seems to indicate that there is a greater demand in the market. Okay, so, prices are stable and rising in the area...what does that mean for you if you're buying or selling?  Well, if you're selling, that's a pretty easy answer. It's definitely a great time to sell. If you thought you missed the "hot" market of the last 2 years, you didn't. It's still a great time to get top dollar for your home. What has changed, though, is that in many ways, homes are costing buyers more, therefore, the buyers are not as keen to do as much as they may be in another market. In other words, making sure your home looks "ready for prime time" and is in great shape can make all the difference to get to that multiple offer situation that allows you to pick the best offer with the best terms for YOU. If you're buying? There are opportunities out there, but they are sort of few and far between. Be open to options that may not be "perfect perfect," but that allow you to add equity and value over time. Think ugly wallpaper, kitchen that needs some love, or functional bathrooms that need a makeover. Yes, those things will cost you money, but may put you in the position to have little to no competition (maybe even get a bit of a deal!), and recoup some great appreciation and possibly a better appraisal and refinance at a lower rate should rates go down later. If you're determined to buy that home that everyone wants, be prepared to compete. That means having all your proverbial ducks in a row- reapproval letter from a lender, contingency plans regarding inspection or possible repairs needed in the event you cannot have a full inspection, and the ability to be flexible on terms to appeal to some of the sellers' non monetary goals... Oh, and make sure you've got some extra intestinal fortitude, as it can be a real roller coaster ride. It is worth it in the end, though, to get a home you love! What questions about the market in your area or neighborhood can I answer for you?  

It's hard to watch or listen to the news on any platform lately without getting some sort of news on the housing market. To hear the national news, things have cooled tremendously, but we all know that real estate is really local, right? The story around here is, more or less, a simple tale of supply and demand. A six month supply of housing units is widely considered to be a balanced market (neither buyer nor seller’s market), and we are still in a market with only just over 1 month’s supply. That means the simple concept of supply and demand is going to keep prices steady for a while, and in many pockets of our market, keep things competitive. (For perspective, in February of 2022, the inventory low- we had only .7 months.) For the same sort of perspective, in February or 2022, we only had 1544 active listings in our MLS, and this February, we closed out with 1792. That’s just not that big of a jump, and the buyers are still out there. In fact, homes last year this time were selling on average for close to 107% of listing price, but this year, they are still selling at nearly 98%. (And that’s an average. The median list price to closing price percentage is sitting at 100%) Last January, the average sales price of a home in the area was $378,029. This January, that price is up to $388,060. Yes, that’s up, for sure, but it’s important to note that the average price in May 2022 was $435,893. Does that mean the market has dropped/cooled/changed? Well, sort of. Things have definitely been flattening out from the wild spikes of the last couple of years, and if you were hoping to get on the market and garner 20 cash offers with huge escalations and no inspections, you may well have missed that boat. However, despite what you hear on the national news, our market is in a much softer correcting cycle than many in the country. Anecdotally, we have seen more and more buyers be able to have home inspections, appraisals, etc, over the last few months. That's been a very welcome change for the buyers out there, and we are still seeing them, but perhaps to a lesser degree at the moment. As we head into spring, and the spring market, we're definitely seeing more of those multiple offers, and more situations where those things are being waived again. In short, while rates have definitely gone up, there are still lots of buyers out there looking for homes, and just not enough homes out there for them. While we do anticipate that inventory loosening up a bit as the weather warms, we definitely need more listings! If you're thinking of selling, it's definitely a great time. And if you're thinking of buying, we can get you where you want to be! What will it take? Just a little bit of planning, a little creative/out of the box thinking, and yes- patience. If you have questions about the market, or just your little section of it, reach out! I'd love to break down the data that matters for YOU. *Graph and data- MarketStats by ShowingTime    

It's January 2023 and I'm here to give you the scoop on the Richmond area real estate market for this coming year. Have questions? DM me on Instagram @cindybennettrealestate or at my website at cindybennett.net

In my latest Real Talk with Cindy, I sit down with Josh Crowley at Liberty Mortgage. We discuss mortgage options in today's changing market, pre-approvals, seller concessions, and first-time buyer tips. It's a conversation you don't want to miss. Have more questions? We'd love to help. Reach out to me on Instagram @cindybenettrealestate or via my website at cindybennett.net or Josh at Liberty Mortgage at 757-784-7269.

Whether you own a home, want to own a home, want to sell a home, or just like to keep up with the news, you've probably been hearing plenty about the real estate market, interest rates, and all the attendant chatter. To misquote a quote, the rumors of a crash have been greatly exaggerated. Here in the Metro Richmond Market, where I also pull my numbers unless stated otherwise, we've definitely seen a shift- anecdotally as we've seen more inspections granted, fewer multiple offer situations, and more negotiation on the part of buyers (cue sound of buyers rejoicing everywhere). By the numbers, we see basically the same thing, but you sort of have to look a bit closer to really see what's going on. In November, the average sale price of homes in the Richmond Metro area dipped to $421,017 from $423,438. Not a huge drop at all. BUT, if you look at the median, you'll see that the median sales prices has actually been totally flat since August at $365,000. In addition, while the median list price to sales price ratio has been flat at 100% since September, the average has dipped to 99.9%. That's no kind of crash. A leveling, or an adjustment for sure. But considering that the high of April 22 was 107.5%, that is a drop indeed. Basically, you're still not "stealing" a house here in the Richmond area, but if you were looking over the last 6 months and got tired of crazy multiple offer situations. those have largely dissipated. While we may see some *great* homes that have multiple offers, most homes now do not. Can you get homes with an inspection and/or negotiate a price reduction or some concessions? You absolutely can! It's happening pretty consistently, in fact. If you're selling, 100% of list price still doesn't sound too bad, does it? Just make sure you have an agent you trust to help walk you through the process, from prep, to pricing. Do you have more questions on the market? I'd love to help!

Another month, and another post about the market shifting. If you pay any attention at all to the national news, you've likely heard all sorts of stories of how prices have plummeted as rates have skyrocketed, but here in the Richmond Area, things are a little less... well, dramatic. Has the market shifted here? Yes. It has. The days of 20 offers in a weekend packed with showings, appraisal and inspection waivers, and buyers giving up their first born to "win" the house are largely over. However- it's important to remember that we are STILL in an inventory shortage. That means quite simply that there are more buyers than there are homes to buy. So, while we may not see as many offers in multiple offer situations, we are still seeing some multiple offer situations. In fact, the average sales price in the Metro Richmond Area was $423,262 in October, up from $403,512 in September, and up almost 9% from this time last year. While we are seeing a bit of a slow down, we're certainly not saying SLOW. The average number of days on the market for listings was 16 in October, and that's down from 17 in September. Not a huge difference, but also not indicative of a serious slowdown. Last year this time, the average days on market for homes was only 14, though, so homes are indeed taking a bit longer to sell. Another data point that shows trends in the market is the percentage of sales price to list price. In October, that number was 101.2%. That means homes were *on average* selling for 101.2% of the asking price. That's definitely down from its peak a few months ago of 107.5%. Obviously, rates are up, and that has caused some buyers to adjust their price range and/or time frame for buying, but there are still lots of buyers out there, and we're definitely still mostly in a sellers market. To note, a balanced market is 6 months of inventory, and we are still (as of October '22) at only 1 month of inventory. That's a good bit away from a balanced market. Do you have questions regarding buying or selling? Real estate is not only local, but sometimes hyper local. Knowing what the market is in your county, neighborhood, and even specific to the home you're selling or looking to buy can make all the difference.    

I'm here with your mid-year shifting market review. So, the first thing I wanted to mention is inventory, we are still in an inventory shortage. So, while you might hear a lot of national news information, talk about a crash or an adjustment, or all these words that make it sound like things have really dropped, we are not quite there. To give you an idea of where we should be with a balanced market, a balanced market has six months of inventory. That means it'll take six months to sell all the homes on the market without any new homes coming on the market. We are currently at point nine of a month, so not even a month. So we are still a good bit away from a balanced market. And that has been the case for the last couple of years. So, taking a look at the inventory from last July to this mid-summer. Our inventory of both new listings and active listings on the market has dropped by a few 100. So not tremendously, but it's not going in the direction that I think the national news wants to let you know, what we are seeing are a few different things. The biggest one is where we were in a market a few months ago where we were seeing a lot of homes going for sale with 20 offers 25 offers we're seeing more that are going with four offers or five offers. So if you are thinking of buying it is a little easier to get in and get in the game. At this point, it's easier to get an inspection, it's easier to not have to waive the appraisal. You don't have to give away your firstborn child, you can actually get a house get it inspected, you might even get repairs done by the seller. Another metric we measure things by are the days on market the days on market last summer were 12 they did drop down earlier this spring and summer to 11. This is an average so that means it includes the worst house you've ever seen in your life that stayed on the market for three months. And the ones that go you know in a day or two hours. So keeping it in perspective, the average is still 12 days on the market which is historically speaking still very low. With the days on market being lower you still if you're buying want to move quickly if you see something that you really like. And keep in mind that again, going back to the average our average sales price to list price right now is still 104%. That means on average, homes are getting 4% More than they are listed for our market is still pretty much booming, but there is opportunity there whether you are buying or selling. And if you have questions about either one of those things, and specific to your personal real estate goals. I would love to talk to, you just reach out.

As we close out yet another "unprecedented" summer, it's a great time to check in on the market and give you a few numbers, but also a breakdown of my assessment on things. Here in the Richmond area, we have definitely seen things cool a bit, but it's by no means ground to a screeching halt. A few things to note, number wise. (These are numbers for the Richmond Metro area, so the city and surrounding counties) The average home price has finally dipped a bit month to month, dropping from $429,015 in July to $420,926 in August. If you look at this graph, you'll see how prices have trended generally over the last year, and it's been pretty steadily increasing all along, until now. (July was a bit lower than June as well.) Days on Market has actually gone up in August over July as well, with the average home now staying on the market 15 days instead of 11. Yep, these are not huge differences month over month, and they are still stronger numbers than last year at this same time. We are very much still in a market with low inventory, and we still have a bit of a backlog of buyers that are still looking for homes. So what does this all mean if you are one of those buyers still looking in this market? Good news! We are seeing more negotiation for buyers, with people able to actually "make an offer" in some cases, as well as have full home inspection and appraisal clauses in their contracts. This is something we haven't seen in some time, and as someone who works with a LOT of buyers, I have to say it's a welcome change! But what if you're selling? Have you missed your window? Absolutely not. As I mentioned before, we still have fairly low inventory, and that means there are still more buyers than sellers, and pretty high demand. Did you miss the window of multiple offers with no contingencies and way over asking? Maybe. We are still seeing plenty of multiple offers, but that's a bit unpredictable, even in the "hottest" of areas. If you need to sell, though (or just want to sell), it is still a good time, just in a more normal sense of good, rather than totally crazy like it was 6 months ago. Do you have questions about the market as we head into fall? I'd love to help you get your questions answered, and make sure you have all the information to make any move you need or want to make. Call me!

Hot Summer Market Update As summer draws to a close (how is that even possible?), our market in the Richmond area is still pretty hot! Here's a little break down of the late summer happenings. Stay tuned for fall and what's to come! So let's break it down! The average days on market as of July 22 is still 12, up just one day from last month, and the exact same as July of 2021. The "Month's Supply" right now is .9. That means that it would take 9/10 of a month to sell through all the homes currently on the market, if no others came on the market. A buyer's market is generally marked by a 6 month supply. While it may be taking things a bit longer to sell, and buyers have a bit more flexibility to ask for things like inspections, etc, that for a while there were hardly getting accepted, we are still very firmly in an inventory shortage and sellers' market in most of the Metro Richmond area. But how competitive is it really? Well, while the average percentage of sold price to list price has dropped to 104% in the Metro Richmond area, that is a bit deceptive. The median number is 102.6%. That means there are a good number of homes that are going well over that, keeping that average lower.   Cut to the chase- is it still a good time to buy? To sell? If you're buying- rates have definitely gone up from those all time lows, but pricing has, and continues to, become a bit more normal. So, if you look at it in the long term, prices are unlikely to go down (it's more than very doubtful we'll see anything here in the Richmond area that looks like a "crash") but you are less likely to be up against 20 other people on a home. That means you have more negotiating power, and probably won't have to bid up like a few months ago. If you're selling? Well, you may have missed the window of those crazy prices, no inspections, etc, but we are still in a very real inventory shortage, and there are still LOTS of buyers out there. That means you may have to put a little more effort in to getting it ready for market, but it is still a good time!    

Well, mostly midsummer, at least. It's hard to turn on the news without some sort of daily update about the real estate market, but with so much click bait, so many opinions, and headlines crafted to grab your attention, what is the real story?? (And how much does the national news impact what's going on here in Central Virginia?) I'm here to break it down for you! What's Been Happening for a While? Well, it's no surprise that the real estate market has been going full steam for the last couple of years. The reasons for that are numerous. To name a few: The pandemic created different needs in the home- more work from home situations, more desire for home to be a "get away" when so many get aways were closed (think pools, putting greens, and more outdoor kitchens), and more people becoming something of digital nomads, with the ability to move anywhere. Interest rates dropped to historic lows, so money became so cheap to borrow, and that absolutely spurred the market, make home ownership more attainable for many. Millenials/older millennial buyers dropped into the market in force. Being the most populous generation, they made up 43% of the buyers out there in 2021 and those numbers continue to grow. The production of new housing units dropped after the mortgage crisis in '08, and the supply has diminished since. All of those factors created a serious supply and demand issue, where there were quite literally more buyers than homes. That's been going on for a couple of years now. What we're seeing now and how it's changed over the last few months.  Obviously, rates have risen quite a lot in the last few months, going from a low of 2.68% in December of 2020 to the current rate (as of July 2022) hovering around 5.5%. That has pushed some buyers out of the market completely, and more into different brackets of their price range. In our market, in Central Virginia and the Metro Richmond area, We're still seeing a good number of multiple offer situations. But, instead of 15 offers, we're seeing more 4 or 5 offer situations. Every home is not selling immediately. The homes that have don't have great curb appeal, show a lot of deferred maintenance, or are priced too ambitiously are not flying off the market like they were a few months ago. Buyers are able to be, and are being, a little more picky, and a little more cautious. Fewer buyers are waiving "all the things-" Inspections, appraisals, etc. More price reductions. Price reductions have tripled since early May. Those days of pricing homes by throwing a dart up high, and having offers that still exceed it, seem largely over. In most cases, at least. What is projected in the next few months/looking into next year? (And how will it all affect you if you're looking to buy or sell?) Despite some people's predictions of a housing market crash, that's VERY unlikely to happen here in the Richmond area. Demand is still high, and supply is still pretty low. While we may see a more "normal," market, it is doubtful that we'll shift completely from a seller's market to a buyer's market. It will likely just be more balanced. We're already seeing more home inspections and fewer high appraisal waivers, so if you've wanted to buy and those things have scared you, that window is opening just a bit. All of the experts do predict that rates will continue to rise over the next few months to a year, and that homes prices here will continue to go up (not at the same rate, but still, up) for the next few years, so if you're thinking of buying, don't wait for prices to go down. Buy when it's right for YOU. If you're thinking of selling, you may have missed *much* of the crazy peak of the seller's market, but with supply still low, it is still a good time to sell and leverage the equity you have in your home. Do you have more questions about the market? Follow me on social media and here for more market updates, or give me a call to give you a customized assessment of your unique situation.