RICHMOND, Va. (WRIC) — Across Richmond, new homes are hard to come by. The market has been red-hot over the past year, but experts say things are cooling down.
According to the Richmond Association of Realtors, homes in the Central Virginia region are selling faster on average — a consistent trend over the last seven years.
This is a seller’s market. But for how long?
However, the association also said the market is starting to slow down.
In the first quarter of this year, there were 3,380 total home sales in the Richmond metro area. This is a drop of 9% compared to this time last year.
Part of the problem? A lack of inventory. In these first few months of 2022, there have been around 1,536 active listings; an 11% drop compared to a year ago.
And prices keep going up. Median home prices in Richmond soared to $333,439. This is $38,000 higher than in 2021.
Hanover County’s increase is especially noticeable; leading the Richmond-area market in price growth with a median home price of $410,000. That is $67,000 higher than the year before.
Despite the fact that home prices are still increasing, the increase is slowing down — a phenomenon that is expected to continue. In 2023, mortgage loan company Fannie Mae predicts nationwide home prices will jump only 3%. That could be good news if you’re still waiting to buy a house.
Despite the slowdown, local experts say the market remains strong and competitive.
“The housing market in Central Virginia has slowed when compared to last year’s atypical numbers, but don’t let that fool you,” said Dare Tulloch, President of the Richmond Association of Realtors. “The market remains strong and competitive across the region, as 15 of 16 local markets in Central Virginia had sales price levels exceeding the asking price during the first quarter.”