The mantra continues when it comes to housing in Metro Richmond: High demand and ever-shrinking availability. That makes for a seller’s market in 2018, and a continuance of a pattern that’s been in effect for several years, now. “We’ve sort of been saying these things for the last few years and it’s just intensifying,” says Carrie Parker, Realtor with First Choice Realty.
FEWER LISTINGS, LESS TIME ON MARKET
Average number of days on the market have dropped from 54 to 47 in the past year, active listings (available housing) have dropped from 3,637 in 2017 to 2,257 in the first quarter of this year. Time on the market has declined over four years. Active listings in Metro Richmond have dropped a whopping 68 percent since the depths of the Great Recession in 2008, and are down 14 percent in the past year alone.
STRONG JOB MARKET
A strong local economy helps drive the housing market. Unemployment stands at 3.5 percent in Metro Richmond, and job growth continues an upward trend, with 4,800 jobs added between February 2017 and February 2018.
HIGHER HOME PRICES
The low inventory-high demand cycle is driving home prices upward. Average sales prices have increased about $11,400 in the past year in Metro Richmond to $277,960. Prices have risen for more than six years now.
NEW CONSTRUCTION
It may also be a reason behind an increase in the number of building permits issued in the past year. In metro Richmond, permits for construction of single family homes increased 16 percent, from 656 in February 2017 to 761 in February 2018, according to the National Association of Homebuilders.
TOUGH MARKET FOR NEWBIE BUYERS
First-time buyers need to be familiar with the market and look for areas that offer the most home for their budget and lifestyle. Certain communities, including Carver, and Randolph by Maymont, offer more value.
