By: Liz Moore
There May Never Be a Better Time to Sell Your Home.
The primary factors that are influencing both national and local real estate markets right now – low supply
and high demand – have converged to create an incredibly favorable market for sellers. This is particularly
true in our local market, where additional demand has been fueled by the pandemic; buyers who now work
remotely and can accordingly choose where they live and no longer be restricted by a commute, are finding
Richmond a highly desirable place to live.
Sellers in 2021 enjoyed peak pricing, with the median sold price up 12.3% over last year in the Greater
Richmond region. That was enhanced by multiple offers in many instances. My crystal ball says that the
favorable trend for sellers will continue well into 2022. The only 2 things likely to slow the train down
are an increase in interest rates, which will take some buyers out of the market, and an influx of listing
inventory, creating more competition. I do believe that both of those things will happen in 2022, but most
likely not until the 2nd or 3rd quarter.
So, What Does This Mean for Buyers?
Buyers have had a tough go of it for the past 2 years. When there are 5 offers on a new listing, only 1 buyer
is successful in their bid, leaving 4 disappointed and still looking. However, historically low interest rates
are a compelling reason to stay in the game, and also inspire a buyer to pay over asking to win the bid on
the property they really want.
Closed sales in the Richmond area were up 7.3% in 2021 over the prior year (and 23.6% at Liz Moore &
Associates in Richmond), so that’s good news. We believe the key for buyers to win in the current market
climate is to hire a great agent. And, while that may sound self-serving, it’s true. Experienced agents who
understand the market, have solid relationships with the other agents, and who are savvy negotiators will
make the difference for a buyer to be successful.
I predict that sales will drop slightly in 2022. So says Lawrence Yun, the Chief Economist for the National
Association of REALTORS, and I agree. Although there is plenty of demand out there, inventory is simply
so low (hovering around half a month’s supply as of this writing) that it will keep a lid on the number
of sales.
Real Estate is a Great Hedge Against Inflation.
If you invest $30,000 in the stock market, and your annual return is 7%, then you’ve earned $2,100 (which
is a lot better than you’ll do in a regular savings account in the bank!). Invest that same $30,000 as a down
payment on a $300,000 home, and if it appreciates 7% in a year, then you’ve earned $21,000 – 10 times
more! That’s the benefit that the leverage of real estate affords.
This is a great time to explore investing in real estate; your portfolio can guarantee your retirement, or it
can get your kids started on building lifetime wealth.
Don’t let the intense market intimidate you. If you want to take advantage of the sellers’ market and the
low interest rates to move up to a dream house for instance, don’t let the challenge of buying stop you.
Your Liz Moore agent can help you formulate a strategy, and combined with a little patience, we can make
it happen.
In 2008, we all wished we had sold our homes back in 2005. Where will you be in 2025?