2018 in the Mirror
We are excited to present you with the 2018 Richmond Annual Report. This past year has been a great time to own real estate, and a good time to sell real estate. But buyers in 2018 found the market to be tight and hard to navigate. Desirable properties were hard to find, and agents across our region reported multiple bids on many homes. The low interest rate environment, along with a healthy economy and rising prices, led to buyers greatly outnumbering sellers…and that led to much frustration.
Despite the fact that this felt like the most active market since before the 2009 recession, across the region we watched the number of sales drop. This was true in the City of Richmond, as well as Henrico, Hanover, and Chesterfield. Only Goochland saw actual sales increase, from 353 to 357. (Not much to brag about.) Compare that to Henrico where sales dropped by 248 sales from 2017, while median prices grew by nearly $15,000.
Sales began slowing in the fourth quarter, which led to a much needed increase in inventory by year end. But buyers in early 2019 are still going to find homes in short supply, as Henrico, Chesterfield, and Richmond all still hold less than a three month supply of homes in inventory. (A balanced market is considered 6 months.)
When looking at individual Nest Areas, the numbers prove out the old adage that “all real estate is local”. Price appreciation differences abound, as areas such as Northside continue to show some of the strongest growth in our area. Prices have been buoyed by the many renovations in the area. The City’s West End again topped our charts as the most expensive area based on price per square foot, 70% higher than the overall market average.
As we head into 2019 with the Government shutdown having just ended, and anxiety rising, it is likely that we will begin to see inventory balance and the market cool slightly. The unknown will revolve around a pent up demand by buyers who were unable to find their dream home in 2018. If these folks stay in the market, we could see a healthy sales rate, and with still low interest rates, this is distinctively possible.
In the meantime, enjoy our 2018 Richmond Annual Report below, and feel free to reach out to a Nest Broker if you have any questions about your specific area. We’d love to help explain it more thoroughly.