Richmond home prices leveled off in January
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Richmond home prices seem to be leveling off some after soaring for two years, per Redfin data.
Why it matters: Any relief from sky-high home prices is welcome, especially as mortgage rates creep up.
Yes, but: While prices dipped some in January, they're still up year over year, and metro Richmond's supply was at just one month, per the Richmond Association of Realtors — woefully short from the industry recommendation of three months to support a healthy market.
By the numbers: The Richmond metro’s median home sales price was $325,000 in January, per Redfin, up 4.8% from last year and down more than 3% from December.
- RAR data puts the median price even higher at $345,000.
- Inventory was up 27% from last year.
- Homes sat on the market for a median of 26 days in January, up from 21 days last year.
Of note: The city of Richmond saw the biggest year-over-year drop in median sales price for single family homes in January, falling 11% to $280,000, while also seeing some of the steepest losses in listed and closed sales.
Zoom out: Nationally, median home sales prices have crept up 1.3% from one year ago.
- The national median home sales price in January was $383,000.
- Sales are down more than 30% from the previous year.
- As demand falls, homes sit on the market a little longer, which gives buyers a little more room to negotiate.
What’s next: Spring, which is typically marked by high demand, more competition and higher home prices, is right around the corner.
- If spring 2023 follows typical trends, we should expect home prices to rise again in the near future.
- Yes, but: Experts predict 2023 will see a far less frantic housing market than in 2022.
The bottom line: We're starting to see a moderate market correction, but home values aren't falling.