Richmond continues to see a decline in residential home sales with a 40.7 percent decrease in August 2022 in comparison to August 2021.
Home buyers today are exercising more caution in response to rising interest rates, inflation, and recession concerns. The Richmond HPI Benchmark Price for all property types is down -1.7 % in August and -4.5% in the last 3 months.
As buyer demand and buying power continues to decrease due to rising interest rates, it is highly likely we continue to see further real estate price declines in the coming months.
Downward pressure on home prices usually occurs when the sales-to-active listing ratio dips below 12%, while home prices experience upward pressure when the ratio passes 20% over a sustained period of time.
Listings in Richmond are down by 17.2% for detached homes, 17.4% for townhouses and 5.3% for apartments in August compared to July 2022. In contrast sales in Richmond have actually increased in August compared to July. If new listings continue to decrease and actual sales continue to increase it will become more and more difficult for prices to fall further.