April 2023 Richmond, VA Housing Market Update
Central Virginia, it's time for a reality check. If you've been listening to the housing market forecasts on social media or national news, you may have been led to believe that the housing market is in dire straits. But, before we delve into the April 2023 Housing Market Update, let's take a trip down memory lane to the end of 2022.
During that time, we were bombarded with doomsayers predicting that the housing market was in trouble. While there may be a kernel of truth in some of their pronouncements, the reality is quite different. According to the Jan 2023 Y-O-Y Appreciation table for the top 20 US cities, several cities experienced depreciation, including Portland, San Diego, Seattle, and San Francisco. However, there were also cities that experienced YOY appreciation over 8%, including Atlanta, Charlotte, Miami, and Tampa. Closer to home, Metro Richmond experienced a 5.4% YOY appreciation rate.
One thing that is indisputable is that housing affordability is at historic lows. This is a trend that has been going on for some time, and while there are signs of an uptick in recent months, it remains to be seen whether this will continue.
The challenge for many buyers is not whether they can afford the mortgage payment, but rather, whether they can afford to offer appraisal gap coverage, waive the home inspection, and deal with any potential issues that may arise as a result. For sellers, this presents a unique opportunity to capitalize on the market and sell their homes as-is.
If you're a seller, this is an opportune time to sell your home. It's go time, and selling as-is is an option. For buyers, the housing market is a bit like the Hunger Games, and you might need to search off-market to find the right home. Your agent matters a lot in this process and can make all the difference in finding the right property.
In conclusion, while the housing market may be challenging, it's not all doom and gloom. In Metro Richmond, there is still room for growth, and for those who are prepared, it's a good time to either buy or sell. Don't let the naysayers fool you; the housing market is still going strong.