Richmond Virginia Real Estate Market Update: April 2023 Insights and Trends
I know we have all heard various real estate market updates, some painting a rosy picture while others predict doom and gloom. However, it's important to consider the specific market statistics being analyzed—whether they are international, national, statewide, or local. When it comes to real estate, the local view is crucial. In the Richmond Metro area, comprising 17 different cities and counties, taking a hyperlocal perspective is essential. Today, let's dive into the latest statistics for single-family homes in Chesterfield, Hanover, Henrico, and Richmond City, and gain a better understanding of the Richmond Virginia real estate market dynamics in April 2023.
For Sellers
For Sellers: If you're considering selling your home, there's good news to start with! The number of new listings this year has decreased by 28% compared to the previous year. At the same time, the number of mortgage applications has increased by 3.7%. What does this mean for you? Well, it translates into less competition among listings and a larger pool of buyers considering your house as their future home. And here's even better news—on average, homes are closing at 102.4% over the asking price. In other words, more money in your pocket! Partnering with me, we can ensure that you achieve the maximum price for your home by implementing a platinum level marketing plan.
For Buyers
To all the buyers out there, don't get discouraged! Despite the challenges, there are plenty of positives to consider. I understand that in some areas, every house seems to have multiple offers. However, there's good news for you, too. The average number of days on the market has increased by 66.7%. This means we are gradually moving away from the intense competition of the COVID Market, where buyers had to rush to see every house, make lightning-fast offers, and include numerous concessions to stand a chance. While certain markets may still be competitive, they are not as frenzied as during the COVID Market. Together, we can develop a strategic offer to elevate your chances of success.
Interest Rates: You may be concerned about interest rates, and it's true they have risen since the days of historically low rates at 2% and 3%. However, let's put things into perspective. The average interest rate on a 30-year fixed conventional loan since 1971 is 7.75%. Currently, rates are still approximately 1 percentage point lower than that long-term average.
Housing Prices: There's a common perception that housing prices keep skyrocketing, but let's take a closer look. While prices were up around 12% year-over-year for the past couple of years, they have now slowed down to approximately 4%. When viewed from this perspective, prices have actually decreased by 8%.
In Conclusion
Whether you're ready to buy, sell, or may be still contemplating your options, I'm here to assist you every step of the way. Let's schedule a time to discuss your real estate goals and navigate the current market together. Don't hesitate to reach out and grab a time slot on my calendar. I look forward to talking further.
