Nov 15, 2022 - Real Estate

Buying a house in Richmond is finally easier, but not cheaper

Data: Freddie Mac; Chart: Madison Dong/Axios Visuals

The Richmond metro area's real estate market is starting to level off, according to the latest data from Redfin/MLS.

Why it matters: After two-plus years of plummeting inventory and sky-high home prices, buyers have waited a long time for a little relief.

What's happening: Mortgage rates started to surge in May and have since passed 7%, squeezing homebuyer budgets.

By the numbers: Pending sales in the region are down 31.6% since May.

  • Median home sales prices fell from $365,000 to $345,000 from May to September.
  • Sellers are increasingly dropping their asking prices. Close to 38% of listings had price cuts in September, up from 21.8% in May.
  • Meanwhile, a shrinking share of homes sold above listing price. In September, 46.7% of homes sold above listing price, down from 71.4% in May.
  • Homes are also sitting on the market longer. In May, homes sold in eight days on average, compared to 14 days in September.

Yes, but: Monthly mortgage payments are significantly more expensive than they were a year ago.

The bottom line: Richmond's market is calmer, but buying a home right now isn't necessarily cheaper.

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