Jan 10, 2023 - Real Estate

Here's what experts say 2023 holds for Richmond real estate

Illustration of the year 2022, with a keyhole for a zero, which zooms in so you can see through the keyhole to the year 2023.

Illustration: Brendan Lynch/Axios

Richmond shows no signs of a market crash. Here's what experts say to expect instead.

1. Supply will remain low.

Supply has been low for years, and Laura Lafayette​​, chief executive officer of the Richmond Association of Realtors, says this won't change in 2023.

2. Sales activity will slow.

The metro-area housing market already slowed in 2022, and 2023 sales will be flat or slightly down from 2022, Virginia Association of Realtors chief economist Ryan Price predicts.

"It’s likely the first half of the year will be slower than the second half of the year as buyers continue to acclimate to the current interest rate environment," he says.

3. Sale prices will rise.

Since demand is higher than supply, home sales prices will continue to rise, Lafayette​​ says.

"Even with fewer sales, the tight supply coupled with the strong demand pipeline is keeping upward pressure on home prices," Price explains.

4. Mortgage interest rates will come down, eventually.

Price anticipates rates will be relatively volatile in the near term and will cool to 5.5-6% by the end of 2023.

  • Of note: Many factors could alter this trajectory, Price says.
avatar

Get more local stories in your inbox with Axios Richmond.

More Richmond stories