There has been a boom in the local buyers market, the highest the Central Virginia community has experienced in the past 10 years, making 2017 the year to sell your home. With interest rates being low (3.8% on average on a 30 year fixed mortgage), and local millennials transitioning from rental properties to seeking homeownership, now is the time to sell. Consumer confidence is high meaning the local demand is only growing higher. Currently, inventory is low so most homes on the market are selling fast and are generating higher selling prices and bidding wars. All in all, the market is great for those looking to sell.
According to the CVR-MLS 2017 Quarter 1 Report:
"The Central Virginia housing market is off to a strong start in 2017 relative to last year. Home sales and pending sales both climbed at double-digit rates, homes are selling much faster, and prices are rising at an increased pace. These housing metrics indicate strong buyer demand in the market, which is being driven by a healthy economy, both at the national and regional level. Gross Domestic Product (GDP) has been consistently rising for about 2 years, and the employment picture continues to strengthen with lower unemployment and more jobs available. At the region level, jobs are being added every quarter from a variety of sectors, and the unemployment rate continues to trend below the national level. Consumer confidence in both the current and future economic situations is trending upward."
The report goes on to say:
"With momentum following a strong finish to last year’s market, sales in the Central Virginia Region housing market are off to an even stronger start to 2017. There were 3,650 sales in the first quarter, 15% higher than this time last year, an increase of 478 sales. This is the sharpest increase in sales the region has had in nearly 2 years. The increase in sales occurred throughout the region, with 12 of the 16 jurisdictions having more sales than last year, all at double digit rates. There were 3,028 sales in the Richmond Metro Area and 316 sales in the Tri-Cities Area in the first quarter, both 16% higher than a year ago. Sales throughout the Richmond Metro Area exceeded first quarter levels from the previous 9 years. Hanover County led the Metro Area in terms of growth rate, climbing to 317 sales, 49 more than last year, an 18% increase. There were 1,192 sales in Chesterfield County in the first quarter, up 16% from last year, and now more than double the number of sales from the recession 8 years prior (554 sales in the first quarter of 2009). Jurisdictions within the Tri-Cities Area also had strong sales growth in the first quarter. Notably, the City of Hopewell had 81 sales, up 53% from the first quarter of 2016, the highest growth rate in the region. There were 78 sales in Petersburg, up 28% from a year ago, a gain of 17 sales. "
In addition, typically when there is an administration change there is a shift in the economy. This has yet to occur which means the steady supply of those who are ready to buy is only increasing. If a house is available for showing the consumer is having to rush out that day for a viewing and put in their offer because the majority of the time the home is flying off the market. This can be quite stressful for those purchasing but is excellent news for the seller. Days that homes are listed on the market have gone down significantly as well due to purchase demand being so high. So, what does all this mean for those who may be on the fence about selling their home? SELL NOW!
For those that are buying... buy now. Prices will only increase and with interest rates for new home loans being so reasonable, this is the time to lock in your loan and get out there to bid. The Ellen Clark Team is here to help you get the most for your home and ease the stress of listing your home yourself. For those looking for a home, we are also here to aid in the search, negotiations, paperwork, and closing process. Remember, the Ellen Clark Team has proudly served the Central Virginia area for over 25 years and are here to service your real estate needs.