Happy Almost August! Let's start by saying it has been a scorcher this week! Today looks like it is going to be close to 100 degrees in Richmond so stay cool everyone!
Now let's talk about what's not been cool, and that is the Real Estate Market here in the Capital of Virginia. It has also been hot! (kind of).
For starters, the narrative has not entirely changed. We are still experiencing low levels of inventory. According to the Central Virginia MLS we have approximately 24.2% less homes available year over year from mid-summer last year. (which makes it an amazing seller's market!) There are not many homes out there for sale. I used to hear agents say that we cannot relay that information over to the public, but nowadays, I disagree with that statement. Potential sellers and purchasers need to know that there is not a lot of existing homes out there. This sets the expectation clearly for everyone that if you are serious about purchasing a home, you need to do whatever it takes to acquire it.
Here are some of the amazingly positive outlooks for the housing market:
If you are looking to sell your home in Richmond, you are still in the clear. You did not miss the boat on selling your home for top dollar through what we now come to know as "the Covid Years". If anything, you may have inched your way to a higher price than you would have received over the last few years.
Yesterday, the Fed announced another round of rate hikes. This will most likely keep the supply of existing homes strapped until they announce a decrease in their target rate projections. Once that happens a couple of times, the floodgates will more than likely open, introducing more inventory to the market. The caveat is that it will also introduce more buyers who were either outpriced or did not think it was affordable when rates were in the 6-7% range.
So, here is my true advice. If you can make the numbers work, go after the house. Seriously. If you need to get into that school district that you envisioned your kids being in, or want to make that move to the neighborhood you have been dreaming about, do it. If you are just looking to get your foot in the door and thinking about buying your first home, or you are tired of paying rent that is only going to someone else paying down their mortgage, get in the game! When everyone else is sitting on the sidelines, seize the opportunity to make a great decision when others may be fearful.
You might be thinking to yourself, "of course you are telling me to get in the game, or that now is a great time to sell your home, you are a Real Estate Agent, it's your job." I wouldn't tell someone to do something that I personally wouldn't do. I just closed on a home in a location I never thought would be achievable in this market. Is it my dream home? No, but it is absolutely amazing, and it is right in The Fan, within a 5 minute walk to Carytown, The Museum District, Byrd Park, and within close proximity to any of the highlights the City of Richmond has to offer. This is what I envisioned this stage of my life looking like. Your vision could be completely different. Your vision could be on 10 acres with land in Goochland, or a quiet neighborhood in the West End near the University of Richmond, however the concept of going out and getting what you want is still the same.
And I cannot stress this enough, if you have been thinking about purchasing new construction, now is truly the time. Home builders are currently ramping up their production in order to meet demand, and with technology and new building practices, the quality of new homes is only getting better and better. When rates drop down again, those prices are subject to increase along with the buyer pool that will increase, so getting in while things are quiet makes complete sense.
I know that times are unpredictable, and that we are fed a lot of information through many platforms, but you truly have to do what is best for you and your family. If you have your dream home, in your dream location, congratulations! You did it. But if you are serious about taking the leap into your next chapter, I would love to talk.
If you have any questions or need market advice on the current real estate environment in the City of Richmond to the West End (or New Construction) please don't hesitate to send me a message. Hope you are all able to stay cool in this heat wave!
