While we are seeing slight adjustments to the market, we have not experienced any dramatic changes even after almost six months of increases in interest rates. Our local Richmond market is still being driven much more by low inventory than by interest rates. As an example, as of this week only 10% of sales were under asking price; during the height of bidding wars we were running at about 4-5% of sales at under ask. That’s a very slight difference. Likewise a small portion of listings are going under contract in 15 days or longer, whereas the lion’s share is still selling in 3-5 days. These small changes are just the way we want to see the market correct itself and calm down. It’s hard not to pine for 3% rates, but we’re still in good shape and purchasing a home is still your most sound investment.
Market Snapshot: May 2022