Remainder of 2023 Housing Predictions

If you're in the Richmond, Virginia area or considering moving here, you're likely keeping a close eye on the real estate market. In this blog post, we'll explore what's in store for the Richmond, Virginia real estate market for the remainder of 2023. These predictions are backed by data and analysis, giving you valuable insights into what to expect in the local housing market.

1. Deeper Inventory Drop

The first prediction for the Richmond, Virginia real estate market is a deeper drop in inventory towards the end of the year. This is a seasonal trend, but what makes 2023 different is that we've already seen roughly 30% less inventory throughout the year compared to previous years. Typically, Richmond follows a V-shaped curve, with the highest point in listings occurring around June. However, this year, we didn't even reach last year's peak. This means that the available homes on the market are expected to decrease significantly.

2. Days on the Market Will Decrease

We anticipate that the average number of days a property stays on the market will decrease, though not significantly. This means that homes will sell faster than they are currently. You might be wondering why. Keep reading; we'll explain the factors behind this prediction.

3. Median Percentage of List Price Will Increase

Our third prediction is that the median percentage of the list price, which represents how much sellers get when they list their homes, will increase from its current level of 100%. But how is this possible when homes are selling faster and for more money? The answer lies in a common prediction made by industry experts like Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors.

The Mortgage Rate Effect

All these organizations predict a drop in mortgage rates, averaging around 6.27% by the end of 2023. As interest rates decline, more buyers enter the market. Many potential buyers are currently on the sidelines, fearing high interest rates. However, when rates drop, they're more likely to jump in. The same goes for home sellers, who are hesitant to leave their low-interest-rate mortgages behind. When these rates decrease, we'll see an influx of both buyers and sellers, leading to increased demand and low inventory. And when supply can't meet demand, prices tend to go up.

Expect Appreciation

In conclusion, we predict that Richmond, Virginia, will continue to experience home appreciation throughout 2023. In fact, as we approach the end of the year, this appreciation might even accelerate.

Share Your Predictions

We'd love to hear your thoughts and predictions for the Richmond, Virginia real estate market in the comments below. Feel free to share your insights, but remember to back them up with solid facts and figures.

Thank you for reading this blog post, and we look forward to keeping you updated on the Richmond, Virginia real estate market throughout the year. Stay tuned for more valuable insights!