Home sales slow down in Richmond
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Home sales were down about 6% year over year in the Richmond metro area, per RE/MAX’s February report.
Yes, but: The figure actually compares well to most other metro areas, which saw sales decline as much as 37%.
What they're saying: Richmond didn't see those same steep drops in sales in part because local buyers can afford the higher interest rates banks are currently charging, per Laura Lafayette, the director of the Richmond Association of Realtors.
- Another potential factor: She said February's mild weather meant more showings and sales than is typical when temperatures drop.
By the numbers: Rates for a 30-year loan were at 6.09% in early February and shot up to 6.65% by the end of the month, per Freddie Mac.
Zoom out: Because there’s less competition right now, buyers don’t have to front as much cash as they did a year ago, Axios’ Emily Peck reports.
Between the lines: Buyers who can afford these mortgage rates have more power.
- They have more options than a year ago, and they can take their time searching and make offers that aren’t wildly above list price.
On the other hand, these rates make buying unaffordable for many.
What's next: Mortgage rates dropped nearly a quarter point this month, which means buyer activity will likely pick back up.