Mark Adams Team

What’s changed?

The Richmond real estate market continues to shift, but home values are holding up.

September’s numbers show both the average and median sales prices higher than they were a year ago. At the same time, we had fewer new listings and fewer closed sales.

Before we get into the numbers, let’s clear up something I’m often asked about.

Average Price vs. Median Price. What’s the Difference?

You’ll notice that I include both the average sales price and the median sales price in these updates. They measure two different things.

The average sales price is calculated by adding together the sales prices of all the homes that sold and dividing that total by the number of homes sold.

The problem with an average is that a handful of very expensive home sales can pull that number higher.

The median sales price looks at the market differently. Imagine lining up every home that sold from the least expensive to the most expensive. The median is the price right in the middle. Half of the homes sold for more and half sold for less.

That’s why I like looking at both numbers.

For September, the average sales price was $469,333, while the median was $401,300. Both were higher than they were a year ago, which gives us a better picture of what’s happening with home values than looking at either number by itself.

What’s Happening?

Home prices continued to increase in September, with the average sales price up 3.7% and the median sales price up 2.1% compared with last year.

At the same time, activity slowed. New listings were down 2.2%, while closed sales were down 9%.

Homes took an average of 33 days to sell, and the average list-price-to-sales-price ratio was 100%.

By the Numbers

Average Sales Price
$469,333
↑ 3.7% from last year

Median Sales Price
$401,300
↑ 2.1% from last year

New Listings
2,222
↓ 2.2% from last year

Closed Sales
1,440
↓ 9.0% from last year

List Price to Sales Price Ratio
100%
No change from last year

Average Days on Market
33 days
↓ 2.9% from last year

What Does This Mean for Homeowners?

The biggest takeaway is that home values are holding up even though fewer homes are selling.

A market with fewer sales doesn’t automatically mean home values are falling. In September, both the average and median sales prices were higher than they were a year ago.

But buyers are paying attention to price, condition and location. That makes knowing what is happening in your particular neighborhood increasingly important.

Thinking About Selling?

The 100% list-price-to-sales-price ratio needs a little context.

It does not necessarily mean sellers received 100% of the price they originally asked for when their homes first went on the market.

Some homes may have started at a higher price and then had a price improvement before attracting a buyer. If the home later sold at that adjusted asking price, it can still contribute to the 100% list-to-sales-price ratio.

That’s especially worth keeping in mind when homes are taking an average of 33 days to sell.

The lesson for sellers isn’t that you can price high because homes are selling for 100% of list price. It’s that pricing the home correctly matters. Starting too high can mean additional time on the market and a price adjustment later.

Real Estate Is Local

Market statistics are useful, but they only tell part of the story.

What’s happening in Short Pump can be different from Mechanicsville. Chesterfield can be different from Goochland. Sometimes two neighborhoods just a few miles apart can have very different numbers.

That’s why I always recommend looking at the recent sales and current competition around your particular home before making a decision.

Mark’s Quick Home Tip

Do You Know Where Your Main Water Shutoff Is?

This is one of those things every homeowner should know, but a lot of people don’t.

Take five minutes and find your home’s main water shutoff valve. Then make sure you know how to turn it off.

If a washing machine hose breaks, a toilet supply line lets go or you suddenly have water running somewhere it shouldn’t, knowing how to shut off the water quickly can make the difference between a small cleanup and a major repair.

And don’t keep it to yourself. Make sure everyone in the house knows where it is.

My tip: Find it before you need it. When water is running across the floor is not the time to start looking.

Want to Know What’s Happening in Your Neighborhood?

The Richmond market gives us the big picture, but what matters most is what’s happening around your home.

If you’re thinking about selling, buying or you’re simply curious about what your home may be worth in today’s market, give us a call.

We’re always happy to take a look at the numbers with you.

Lisa & Mark Adams
Mark Adams & Associates
eXp Realty
office@markadamsteam.com
804-237-8585