I recently pulled some data from the CVR MLS on sales of single-family detached homes in the 23229 zip code. This zip code remains on of the strongest sub-markets in the Greater Richmond area. For the 90 days preceding July 31, CVR MLS reports 106 single-family home transactions. Gross sales prices range from a low of around $240,000 to a high of $2,650,000. This high-end sale skewed the data upwards as the average was just over $650,000 while the median was slightly under $520,000. Average and median time on market was eight and six days.
As I marveled at the strength of this market, the next statistic is what got me the most excited. The average and median Sales to Listing price ratio (aka SP/LP) was around 105%. This is the ratio of the final selling price to the listing price at the time of contract. Concessions are minimal overall which means this surplus is going to the seller's benefit at closing. No doubt that this is a seller's market, but I wanted to dig in a little more.
I ran a query in the MLS for five years of signle-family residences. The first graphic below show a sharp decrease in active listings from January of 2018. Such a decrease in supply, even if demand remains constant, will drive prices up.
The secone graphic analyzes the relationship between sale and list prices. Prior to January of 2020, it was unheard of to sell above list price. The market was in balance. Of course COVID happened in early 2020 which led to booming real estate prices nationally. Coupled with an influx of residents to Richmond, the ratio spiked in Spring of 2022 at over 110% of list price! Increasing interest rates in the fall of 2022 dampened demand slightly, but we are still seeing contracts around 105% of listing price on average.
If you have real estate to sell, now is the time! There is significant ongoing demand for a limited number of properties. The competitive bidding process allows bidders the opportunity to compete but yet the SELLER wins with the highest price possible!
If you are considering selling, then please reach out and schedule a no-cost, no-obligation analysis and custom marketing plan to realize the best price for YOUR real estate assets!