Real Estate Market Updates

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.  

Curious about what the market is doing? Here's what's happening, with a few FAQs, a few stats, and a few predictions. Do you have questions? Reach out to me- I'd love to get you some answers! If you've been waiting for a "crash," I hate to disappoint you. While we're certainly seeing something of a shift, that only means that we are heading towards (hint- we're not there yet) what will likely be a more balanced market. That means things will start getting a little easier for buyers, while still being good for sellers. Wait. What? Well, here's what that means- The definition of a balanced market is one in which the supply and demand are, well, you guessed it- balanced. That means if no other homes were listed, it would take about 6 months to sell through the inventory on the market. Where have we been in the last year+? If you look at this graph, you'll see it's actually been nearly 10 years since we've had a true balanced inventory, but  in the last year or two, we've consistently been under one month of inventory. There have simply not been enough homes to meet demand. (The why of all this is a longer story that I won't get into now.) As of May '22, we're at .9 months, and still very much in a seller's market. Because of the length of time it takes real estate transactions to close, these numbers are often lagging indicators. In other words, the data is generally a little old to really be accurate for the moment. What I can tell you is that anecdotally, here's what we're seeing: We are STILL seeing many multiple offer situations. Just more often there are 4-6 offers, rather than 20. (There are still lots of 20+ offers happening, though, on those "perfect perfect turn key" homes.) We are seeing more inspections written in to offers, and more of those offers getting accepted. Whew! This is GREAT for buyers. (Keep in mine, in certain areas, and on certain homes, we're still seeing lots of inspections being waived, so just be aware of that if you know you're in a competitive situation.) We are definitely seeing more price reductions, more homes on the market for a bit longer, and more homes without tight offer deadlines. All of these things mean there is hope for the buyers out there, and while we don't really anticipate prices going down, we do anticipate things getting just a bit easier for the buyers out there. (Finally!) "So, what does this mean for sellers? Have we missed our window?" NO! You have not missed your window. It is still a great time to sell! But, we are definitely seeing things trending more to "normal," which means if you're going to sell, there are some things you'll probably want to do to get top dollar (search Selling Your Home posts here for some of those tips!). Cleaning, using a great agent who actually uses professional photos and markets your home, staging, and doing some repairs and prep work are making a comeback for folks who want to get the most money for their home. Also key? Pricing correctly! That window of exorbitantly high prices that still go for over asking may indeed be closing. Questions? I've got answers. Message me or give me a call. I'd love to help!    

So, how did the market look in April? Well, the news may be saying there is a national slow down, but it doesn't seem to have reached us quite yet. Here's the breakdown by the numbers. Average Sales Price in the month of April was $412,850. That's up by 13.2% from last April, and it's still trending upward. (Yes, that means good news for sellers, but buyers in most price ranges are still engaging in bidding wars on most properties.) New Listings were actually down in April, by 25.3%,. but part of that can easily be accounted for by Easter/Passover holidays and spring breaks. Most people don't list during spring break weeks, so that is always to be expected. Closed Sales where also down (likely in part, at least, for the same reason) by just over 12% from last year. Average Days on Market seems to just keep going down! The average in April was 14 days, but keep in mind, that is indeed the average. Much higher than the median, which is only 6. Frankly, 6 is a high number, as most listings go on for 4-5 days, with a deadline for reviewing offers, so if they had no deadline, that number would certainly be lower. The average percentage of list price to sales price is up by just over 3% from last year, clocking in at 107.4% for the month of April. What does all of this mean? Well, at the risk of repeating the same refrain you hear all the time, it really is a great time to be a seller. That still means you have to price your home well, and do all the things to show it off in the best light. BUT, if you follow that course, there is a strong likelihood that you will indeed get multiple offers, with contingencies waived and more money than the listing price. If you're buying, well...things are tough out there, I'm not going to lie. But, having a plan, a preapproval, and most of all, a strategy, can get you in a great home to be enjoying by the time summer is truly here. With rates ticking up, we are likely to see a bit less competition in some higher price ranges, and many people are adjusting their price ranges and budgets to account for the increase. If you are thinking of buying or selling, or just wondering if it's the right time for you, reach out. I'd love to help.

Spring is finally here, but the spring market feels like it's been here for a while. If you have been paying any attention at all to the real estate market lately, you probably have heard a good bit about multiple offers, prices increasing, interest rates, and short days on market. But what does it all mean, and what does it mean for YOU and your real estate goals? I'm going to break down some of the info here for you, and give you my assessment (based on experience and research, but obviously not guaranteed) on what it all means, and how it impacts you. I've heard lots of people say they've thought of waiting to buy until the market cools, or until it "crashes." Here are my thoughts on that: the market is unlikely to "crash," at least not anytime soon. This is not a bubble in the sense of the last bubble ('06-'08). The problem there was primarily that lenders were loaning money to anyone, with very low standards proving they could pay it back. The market now is really a product of a few factors- The last bubble burst, putting some builders out of business, and causing most to slow down or stop building "spec" homes completely. A whole new generation of buyers has dropped into the buying pool (Hi Millenials!) Rates have been at all time lows for the last couple of years (yes, they have ticked up a bit, but they are still comparatively low to the "average" market.) Covid/quarantine/work and school from home...the list goes on regarding how we live in our homes, and how that has changed over the past couple of years, so more people are moving to accommodate those things. In the end, this crazy market is really a result of basic supply and demand. There are simply not enough homes for all the people who want or need to buy a home. So...will prices go down? Well, my thought is that prices won't go down anytime soon. The good news? They likely won't continue to increase at the same rate as they have been. If you're a buyer, what does all that mean? Well, my sentiment is always that if it's the right time for YOU to buy, it's a good time to buy. That is to say, sometimes there's no way to "outsmart" the market if you're buying a home to use as your primary residence. If you're going to be paying to live somewhere, and you usually are, you may as well be paying towards your own equity, rather than someone else's. Even if rates are higher than you'd like. You can always refinance if/when they go down again. If you're looking to buy an investment property, that's a trickier thing, because there aren't a lot of deals happening right now. (There are some, though, so it's not impossible!) In either case, talking through the possibilities, and the market conditions, in the area you're looking, BEFORE you find that place you want to call home, is invaluable in this market. The most important things you can do when buying in this market: Have realistic expectations (many people are writing 4-6 offers before they're getting to one that "sticks") Have a plan (know how much you can and are willing to spend, how much of a down payment is reasonable, and what your payments will be) Be ready to move forward quickly (and have all of those ducks in a row, including a pre-approval letter from a lender) when something comes on the market that you love If you're selling- yes, it is still a great time to sell, and things are going very quickly, often with few contingencies, and in many cases, OVER the asking price. That doesn't mean you can just throw a sign in the yard, though! Doing the prep work to get your home ready still makes a difference if you want to maximize the offers and the final selling price. This means cleaning, maybe a bit of yard work, staging, and overall, just making sure your house shines in its best light. It also means working with an agent who uses professional photography, who will do all the same things to market your property in this market that they will in a less "hot" market, and who will walk you through those things that will maximize the return on your investment. The difference that will make really is surprising, and can mean the difference in 5 offers vs 25. But, you say, "we can only accept one, though." True. But having more competition pushes everyone to build a better offer, giving you better terms, and a better price. Trust me. It's worth it. Do you want more details on the market or the neighborhood where you live (or want to live?) Reach out to me. I'd love to help you navigate the process, or just help you determine if it is a good time to buy or sell.