Embarking on a New Year
Well, we made it everyone! Here we are, surviving real estate agents in a market that has most definitely turned shy with longer sitting times for listings and buyers taking a step back. While we were taking a moment, we gave way to creating Vesta. She was only just a dream last year, but this year, she materialized with a passion and a dream to go beyond what real estate is for most folks. We as agents had to deal with a lot of changes to our contracts and our conversations, but in the end we continued to move forward with now a dynamic team of four and a better understanding of our business.
So what does that mean for all of us? In case you haven’t noticed, we’ve gone back to honing in our negotiation skills. We are writing repair addendums and working out who pays whom, and for what. This, for some was not an easy transition, especially for buyers, as well as Agents who became accustomed to having their clients waive everything. Commissions have always been on the negotiation table and it is important to note, we work very hard to earn that 3% no matter where it’s coming from. Gone are the frenzy of multiple offers, with the rising of interest rates, buyers have backed off with less FOMO fervor. There is also the absolute transformation of RVA itself. Look around. How many condo/apartment complexes are obstructing your skyline? Richmond city, Virginia's estimated 2024 population is 230,127 with a growth rate of 0.38% in the past year according to the most recent United States census data. That’s a lot of people to accommodate in a market that is lacking in inventory. Not surprisingly, a lot of those individuals came from DC and bigger metropolitan areas. Weirdly enough, Winchester, VA won the most transients with a 4.6% change in population.
We are a cool little town city and we continue to attract new residents with our affordability, new industry, and a nice mix of suburban, city, and rural landscapes. What does this mean for 2025’s housing marketing here in Virginia? It isn’t the greatest news for first time home buyers. It’s not terrible, but housing prices are not going down any time soon and interest rates will probably see a fluctuation between 5-7%. What was a $360,000 average home sale will increase to about $375,000 unfortunately, but we aren’t Austin yet (knocks on wood).
It’s not completely hopeless, sometimes a change in perspective is what is needed. Maybe we don’t go for the fully renovated home or really need that garage. There are always ways to find an affordable home that you can refinance or gain some equity with to leapfrog to the next, more desirable one. The decrease in interest rates will alleviate some of that stress. Here is some solid advice for you buyers out there:
FIND A GOOD AGENT: Last year, we noticed how many transactional agents there were out there. Find an agent who KNOWS the area and can matchmake well with your needs and desires. Find an agent who is communicative and responsive, they should always be attentive and a good listener.
BE PREPARED: Don’t lollygag when putting an offer in, go in assertive and pre-qualified.
DON’T HESITATE. The way the current market is changing don’t be intimidated in putting in an offer. Sometimes taking a chance is better than missing out. You never know what a seller is willing to compromise.
MAKE A LIST: Really hone in on what you are willing to work with. Does it really need to look like it stepped out of HGTV or are you willing to give yourself some small projects to make this home yours?
Sellers! Now is the time to:
Get any home improvements completed. Contractors won’t be as busy during the winter months so take advantage of taking care of those pre-sale repairs.
Time to put your mindset in the Spring market. Get a Comparable Market Analysis (CMA) from your agent, it’s free and will tell you how much value is in your home.
Think about your next move. What areas are you looking in, can you possibly feel out some desirable homes by looking off-market?
Make sure your agent has a effective marketing plan for the sale of your home. Presentation is everything!
As always, there is never a good or a bad time to buy a home, it all depends on your motivation and phase in life. We are always here to have a conversation and to guide you on your journey home.
