Richmond Real Estate Market Report: What's Really Happening


Blog by Arnold Shuchat | February 17th, 2017


This is my Friday pause, before moving on to some weekend fun. Below are two summaries of market activity in single family houses for Richmond:  The first from Jan 2-feb 17, 2016 and the second, the same period this year.

My observations are summarized below:

Last year: Jan 2-Feb 17, 2017 Richmond SFDs
 TOTAL
 HIGH  LOW  AVG  MED
LISTING COUNT: 248 DAYS ON MARKET: 322 0 27 8
HIGH LOW AVERAGE MEDIAN TOTAL PRICE
LIST PRICE: $2,888,888 $798,800 $1,527,534 $1,399,000 $378,828,653
SOLD PRICE: $2,530,000 $745,000 $1,597,114 $1,517,000 $396,084,364
This year: Jan 2-Feb 17, 2017 Richmond SFDs
 TOTAL
 HIGH  LOW  AVG  MED
LISTING COUNT: 87 DAYS ON MARKET: 278 0 42 13
HIGH LOW AVERAGE MEDIAN TOTAL PRICE
LIST PRICE: $26,000,000 $899,000 $2,060,908 $1,559,900 $179,299,044
SOLD PRICE: $18,500,000 $849,500 $1,868,632 $1,486,000 $162,571,066

1, Sales in unit volume are down some 69% since last year. (Readers are cautioned to delay giving weight to this metric until about 60 days after month's end to allow for late reporting).

2. Both average and median sold prices were higher than list price last year, meaning the market was caught by surprise and was trending up. Now it is the opposite, but not to the same degree as the bull pressure last year.

3.  Both average and median sold prices are lower than list prices this year. While it may be expected that the median prices would be lower than the averages due to skewing by extremely high end outliers, the median prices this year are lower by a larger amount as against the average than last year. Last year saw the median at 95% of the average while this year it is at 79.5%.  

4. In analyzing the market's preferred price point, the median may be more informative than the average as to where the action is.

5. The median list price was much higher this year than last year, whereas the median sold price is less than the median sold price last year. This indicates to me that pricing was more out of whack for the market last year than now.