Here’s a breakdown of the latest monthly numbers for Richmond real estate.
If interest rates go up, how does that affect you? In the last month, interest rates have gone up almost a full 1%. We’ll talk about how that affects both buyers and sellers, but first, I want to share some important market statistics with you from February:
The median sale price is up from $301,000 to $329,000 year over year. That’s an 8.5% increase.
The average sale price is up from $332,089 to $361,141. That’s nearly an 8% increase.
New listings are up slightly from 1,795 to 1,907 year over year. That’s a good sign.
Closed sales are down from 1,475 to 1,314 year over year. The reason for this is twofold. Inventory is obviously putting a constraint on things, but a lot more buyers are backing out of contracts these days because they’re having to make such crazy, competitive offers to win.
The average days on market remains flat at around six days.
The list-to-sale price ratio for the average home is up from 100.9% to 102%. This tells us houses are selling for more.
“We’ve seen 120 months of consecutive year-over-year price gains.”
The largest sector of people buying homes these days are first-time homebuyers. If interest rates go up, it’s going to push some of them out of the market, and that may cause inventory to spike. I don’t know when it’s going to happen, but the market is going to have to adjust.
Another stat I read said that we’ve seen 120 months of consecutive year-over-year price gains. That’s 10 years in a row of appreciation on a monthly basis. There has to be some sort of adjustment coming; we just don’t know when it’s going to happen.
I encourage buyers out there not to give up. There are still properties out there. For sellers, if you look at the numbers, you will see that now is an opportune time to list before the market inevitably shifts.
If you’re interested in buying, selling, or both, don’t hesitate to reach out via phone or email today with any questions you might have. We would love to hear from you.