“High Prices Solve High Prices.”
You don’t need me to tell you that the metro Richmond real estate market is hot! Housing prices in the metro area have been rising for several years. Add in a very tight housing supply situation in our area over the past few years and home prices propel even higher when buyers are competing against each other and are willing to pay more than the sellers are asking.
How high is high?
Looking in the rear view mirror, home prices in the metro area have increased 13.2% over the past year. Here’s a breakdown of home value increases by area:
Richmond City - 15% - (current average value $321,052)
Chesterfield County - 15% (current average value $343,033)
Hanover County - 10.9% (current average value $366,737)
Henrico County - 11.9% (current average value $322,894)
Source: https://www.noradarealestate.com/blog/richmond-va-real-estate-market/
Source: https://noradarealestate.com/blog/richmond-va-real-estate-market/ (image via www.zillow.com)
The first six months of 2022 continue the upward trend in home prices - metro Richmond home prices are up 11% with the average home price in the area at $350,000 and median days on the market at 8 days.
(Source: https://redf.in/9MNUJh)
The numbers corroborate what you probably already know. If your house was a stock, it has been a crazy good investment.
That said, your house is where you live and enjoy with your family and friends. It is the biggest investment you have in yourself. It says more about you than you know.
Not to be a killjoy, but these housing numbers are old news. An investment value is always subject to what someone else is willing to pay for it. What lies ahead will be as uncharted as the last 2+ years.
Where will home prices go from here?
Supply and demand factors play a significant role in this equation. But don’t discount or overlook other business and economic factors and conditions that also influence housing market performance and stability. What should you be looking out for?
Not just housing… More details to follow in my next blog post!