Henrico leads region in average home sale price
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The average price of homes sold in Henrico County during the second quarter of this year – $308,073 – was the highest among Central Virginia localities, according to a Central Virginia Regional Multiple Listing Service report.
That average price was eight percent higher than the same price during the second quarter of 2017 in Henrico, the report showed. Overall, 13 of the 16 localities in the region – and all localities within the immediate Richmond area – had higher average sale prices than they did in the same quarter last year.
Dinwiddie County and the City of Petersburg led the Tri-Cities area in sales price growth, each rising 13 percent, to $179,484 and $104,956 respectively.
A recent study by the Brookings Institution of housing prices and incomes categorized the Central Virginia region as “normal” — meaning the ratio of incomes to prices is about right.
While prices rose, sales and pending sales had modest declines – both in the Central Virginia Region and nationally. The inventory of active listings remains historically low and continues to fall, a consistent trend that has reached a decade in length. There were 5,758 sales this quarter, down two percent from this time last year, a drop of 104 sales. It was the first decline in sales at the region level since the second quarter of 2011.
While Richmond Association of Realtors officials believe it's too early to know whether this is the beginning of a trend, they cite the strength of the economy, particularly low unemployment and consistent job growth as evidence that demand in the region’s housing market heading into the summer months will continue.
“The Federal Reserve raised rates again in June, the second rate hike this year,” said Susan Swink, 2018 president of the Richmond Association of Realtors and Central Virginia Regional MLS. "The possibility exists that rates could rise two additional times before 2019. Nevertheless, the housing market in the region appears to be in good shape and in need of more inventory."
