The city of Richmond saw the largest increase year over year, with house prices rising 24% – or $ 58,000 – to $ 300,500 from a year ago.
House prices in Chesterfield jumped 19.6%, or $ 52,100, from a year ago, while Hanover and Henrico each rose 8%, an increase of $ 24,000 and $ 20,000 , respectively.
These spikes are due to a lack of inventory – fewer homes for sale and less time to market when listings appear, real estate experts say.
At the end of March, there were 1,236 active listings in the Richmond metropolitan area, down 48% from the same period in 2020. Henrico experienced the largest drop in inventory with a drop of 52%.
The average number of days on the market was 20 in the first quarter of 2021, half of what it was in the same period last year.
These factors create a perfect storm for buyers, who are starting to take more aggressive action to keep their offers in compliance, including paying more.
What people ended up paying for their homes compared to listing prices also increased compared to last year. Buyers pay an average of 102.1% of listing prices – more than listing prices and, in some cases, significantly more – in order to get the homes they want, according to the Realtors Group report. This is up from 99.4% last year.
It’s both a blessing and a curse, say real estate professionals in the area, as sellers reap big benefits, while some buyers are frustrated with a market that is moving faster and faster for them. .