As the Richmond Times-Dispatch recently reported, the Richmond housing market is “on fire” right now! With the Commonwealth of Virginia on LendingTree’s List of Most Competitive Housing Markets in the U.S., it’s easy to see why the Richmond market is doing so well. This unique city provides a mixture of rich history and modern amenities and is attracting the type of Millennials who are more interested in purchasing a home than renting.
So what’s making the Richmond Market so hot right now? A few things.
When demand is high and supply is low, it strengthens the seller’s market. Homes for sale will see a large number of interested parties with multiple offers, almost always ending in a bidding war and often times a sale above the market value. In June, Long & Foster reported a 23% drop in inventory from last year. Richmond is clearly experiencing a low inventory, seller’s market right now.
According to Trulia.com, the Median Rent rate has experienced a stark increase over the past few months. This has some people reconsidering their choice to rent and looking closer at their buying options. In February, rent averaged around $1,200 a month. In July, the average is upwards of $1,400. Long & Foster also cites a median sale price increase of around $25,000. That’s a 10% increase!
It’s clear that money is moving through housing right now and it’s a great time to take advantage of it. With August quickly approaching, the most popular month of the year for sales, you can expect to come out on top.
As predicted, interest rates are rising. While this might normally deter buyers from taking the plunge, a slow, steady increase could have the opposite affect. Rising rates means a healthy, growing economy; which, in turn, means growing salaries and more stable finances. Buyers should jump on a purchase of their dream homes now before rates rise even higher.
Needless to say, the Richmond market is hot right now. Did you now we offer Free Online Courses that help you keep up with trends like these in your area? Discover our Continuing Education Classes today!
By Moseley Real Estate Experts