Jul 13, 2022 - Real Estate

Richmond's real estate market is cooling, slightly

Illustration of a downward trend line over a house
Illustration: Rebecca Zisser/Axios

With pending home sales falling and asking price decreases more common, Richmond's real estate market is showing early signs of slowing down.

Why it matters: We keep hearing a market crash is coming, but so far, local data doesn't support that claim.

Yes, but: Monthly data shows early signs of a cooler market, even if it's slight.

Data: Redfin; Chart: Kavya Beheraj/Axios

What's happening: From May 2021 to May 2022, new listings were down 12% and pending sales were down 9.3%.

  • More buyers are holding off as home ownership becomes too expensive — home prices are up 22.6% from June 2021 and mortgage rates recently surpassed 5% for the first time in 10 years.
  • More sellers are dropping their asking price. There was a 5.2 percentage point increase in price reductions year over year in May, according to Redfin.

Zoom out: Nationally, mortgage applications were down 24%, and on average, 6.5% of sellers dropped their asking price each week in June, per Redfin's latest market update.

  • In June, national pending home sales were down 13% from this time last year, the largest decline since May 2020, Redfin's report stated.

Be smart: Inventory is still critically low overall, which continues to push home prices up.

What we're watching: New listings and pending sales. If more listings flood the market this summer and buyers don't bite, that's when we would start to see more power shift into buyers' hands.

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