As I have mentioned before, I report monthly to Realty Times the market conditions for Richmond area. Below are this month’s comments: 

     Ready for what’s happening in the Richmond Real Estate market? For me, I am tired of hearing we have entered a “Buyer’s Market” from agents, news media or any Tom, Dick or Harry you might meet on the street. Yes, inventory levels are almost twice what they were at the beginning of 2006. Currently, there are about 9,000 active listings in Central Virginia Multiple Listing Service (CVMLS). This is not a historic high number, but more in line with what was considered an “appropriate” level of inventory prior to the frenzied market we have experienced over the last 4-5 years. With this type of inventory increase it is natural for the Days on Market (DOM) to increase. There are simply more choices for buyers and it takes longer to sift through their options. While DOM is typically a signal for a Buyer or Seller Market, it is not the sole determinate.

List price versus sales price is a much better indicator of the market. At present, properties are selling in most areas within 1 % of the list price. If we were in a Buyer’s Market, this spread would be greater. Historically, 2.5 % off list price has been considered appropriate. Cost as valued in Dollars per Square Foot is also up across the board in the Richmond Area. If we had turned to a true Buyer’s Market, then this number would be dropping. Finally, million dollars sales have already eclipsed last year’s record by 10 % and we have a 1/3 of the year to go. Need I say more.

For Buyers, there is excellent inventory and a relaxed environment in which to make an informed and unrushed decision. Rates are tracking on a downward trend. For sellers, they are discovering buyers want “perfection.” Homes in prime condition are the ones selling at the higher price ranges. Now, more than any other time in recent history, sellers need an experienced professional.
 
As has been the situation in the Richmond Real Estate market since Spring, the market remains the softest in the middle. Under $300,000 continues to sell well and as I have already noted $1,000,000 dollar sales are incredible. The homes properly priced and in “perfect” condition continue to have the sales advantage.
     I also report statistics (i.e., average sales price, days on market, average size, and average dollar per square foot costs) for various submarkets (i.e., Chesterfield, Glen Allen,Mechanicsville, and Midlothian.) If you have an interest in these stats, you may find them here. You will need to scroll down beyond the generic introduction.