As rates eek dangerously close to 7.5%, we’re still experiencing bidding wars in many cases, and still for the same reasons that have been driving the market for several years:
- Richmond real estate continues to be inexpensive relative to the Northeast
- higher rates push demand down the price ladder to lower price points
- areas where it is hard to add new housing (closer to the city) are still where demand is greater than supply
So while 7.5% is higher than we are used to and it has some very real implications financially for buyers, demand is robust and housing in our region is still very much in demand. Yes, rates do tend to thin the herd a bit, but when rents are rising and folks are aging, people need to change their housing into something that fits where they are in life. If it’s your time, let me know if I can help.
Market Snapshot: June 2023