Happy New Year and welcome to another robust year in the RVA real estate market! When people read headlines about inflation and rising interest rates, they often think BUBBLE. And then they often think BURST! In reality, all signs point to the real estate market remaining strong and steady this year and into the foreseeable future. First and foremost, the banking world got itself straight and stopped making bad loans. Buyers have been highly vetted for the last ten to twelve years so the banks are not rife with risk as they were around that 2008 mark. Secondly, Richmond continues to be a city on the rise. Our population is exploding in comparison to historic growth rates of about 2%. Third, and speaking of bubbles, a huge bubble of millenials is fast approaching their first-time-buyer stage of life. Fourth, while interest rates are bumping up slightly, we are still at HISTORIC LOWS. I can remember when they were 18%! Even 4 or 5% are still very low interest rates, though I know that idea will take some getting used to. I could go on and on, but you get the gist. The market is very healthy and being in it is still the best way to build your personal long term financial health. Cheers!
Market Snapshot: November 2021