Oh no, It’s 2007 all over again!…Or is it?
Many home buyers, or would-be buyers in the Richmond real estate market are certain the market is heading for a crash. Is it? With higher interest rates, higher home prices, the situation can’t continue,, right? Here are some points to consider about the Richmond area real estate market:
-Inventory of homes on the Richmond real estate market is up, but still historically low.
-Interest rates are indeed up, but also, over ten years, stil low.
-New construction is flat or down, and some builders have left prices flat.
-The fastest growing group of real estate buyers is Millennials, and they WANT to buy.
-Most economists still see real estate values appreciating 4%-5% each year for the next 3-5 years. Richmond’s appreciation may be as high as 9% each year.
-In 2007, real estate inventory was high, buyers were buying with NO MONEY DOWN, and credit was much too easy.
-As of July 2022, housing inventory REMAINS LOW, and simple supply and dewmand implies a growing, although slowing real estate market. In short, with low housing inventory, but buyers still wanting to buy, along with value appreciation, now may be one of the few times it is a good time for BOTH home buyers AND home sellers.
