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Richmond Housing Market 2019: Home Prices, Trends & Forecasts

How is The Richmond, VA Real Estate Market 2019?

Buying real estate in Richmond can be a worthy investment opportunity. If you are looking at investing in the Richmond VA real estate market as a potential investment opportunity, you must read till the end. Virginia Beach is the biggest city in the state. It is followed by Norfolk on the shores of the Chesapeake. These large, dense housing markets attract attention, but it is Richmond, Virginia you should be thinking of. Yet few do beyond memorizing their state capitals.

Richmond is home to roughly a quarter million people. The Richmond VA real estate market is actually several times larger than this. If you include the suburbs around it, the Richmond housing market contains nearly one and a half million people. This makes the Richmond area the third largest metropolitan area in the state of Virginia.

Annual real estate appreciation rates in Richmond have been quite strong for the past few years. The Richmond housing market is poised for steady price growth and increased competition in 2019. Is Richmond going to be one of the hottest real estate markets for investors in 2019?

To answer this question, let’s take a deep look at the latest Richmond housing market trends and find out the prospects of investing in the Richmond VA real estate in 2019.

Richmond VA real estate market

Original Photo via Pixabay

Richmond VA Real Estate Market Forecasts 2019 & 2020

According to Zillow, the median home value in Richmond is $217,500. Richmond home values have gone up 4.2% over the past year and Zillow’s Richmond real estate market prediction is that the prices will rise 0.6% within the next year. The median list price per square foot in Richmond is $179, which is higher than the Richmond Metro average of $145.

The median price of homes currently listed in Richmond is $280,000 while the median price of homes that sold is $230,800. The median rent price in Richmond is $1,500, which is higher than the Richmond Metro median of $1,450.

Here is the Richmond real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 0.6% till June 2020.

Richmond VA Real Estate Market Forecast

Graph Credits: Zillow.com

Richmond Housing Market Forecast 2019 – 2021

The Richmond housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Richmond housing market trend prediction is 88%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Richmond, VA is 88% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Richmond, VA Real Estate Forecast.

Richmond Real Estate Market Trends

Richmond real estate market trends indicate an increase of $8,000 (3%) in median home sales and a -7% drop in median rent per month over the past year. The average price per square foot for this same period rose to $180, up from $168. Trulia has 854 resale and new homes for sale in Richmond, VA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Richmond VA Real Estate Market Trends

Graph Credits: Trulia.com

The median sales price for homes in Richmond for May 1 to Jul 31 was $253,000 based on 964 home sales. Average price per square foot for Richmond was $180, an increase of 7% compared to the same period last year. The median rent per month for apartments in Richmond for Jun 28 to Jul 28 was $1,395.

As per the real estate company named Redfin, the Richmond housing market is most competitive. Homes in Richmond receive 1 offers on average and sell in around 9 days. The average sale price of a home in Richmond was $240K last month, up 2.1% since last year.

The average sale price per square foot in Richmond is $145, up 3.6% since last year. Homes typically receive 1 offer. Homes in the Richmond housing market sell for around list price and go pending in around 9 days. Hot homes for sale in Richmond, VA can sell for about 2% above list price and go pending in around 4 days.

Richmond Housing Market Statistics

Median Sales Price $253,000 (On Trulia)
Price Per Square Ft $180
Median Rent Per Month $1,395
Median Household Income $41,042
Home Owners 51%
Single Residents 43%
Median Age 37
College Educated 31%
Transportation 93% people commute by car; 4% commute by public transportation

There are 2,704 homes for sale in Richmond, VA ranging from $4.6K to $10M on Realtor.com. 265 of which were newly listed within the last week. Additionally, there are 530 Richmond rental properties, with a range of $510 to $6.5K per month. In June 2019 the housing market in Richmond, VA was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

Richmond Housing Market Trends

Median List vs. Sold Price | Source is Realtor.com

In June 2019, the median list price of homes in Richmond, VA was $260,000, flat year-over-year. The median listing price per square foot was $145. The median sale price was $253,000. On average, homes in Richmond, VA sell after 51 days on the market. The trend for median days on market in Richmond, VA is flat since last month, and slightly down since last year.

Richmond Housing Market Trend

Median Days on Market is 51 | Graph Credits: Realtor.com

The median list price in Richmond, VA is $249,950 on Movoto.com. The median list price in Richmond was less than 1% change from July to August. Richmond’s home resale inventories is 392, which increased 0 percent since July 2019. The median list price per square foot in Richmond is $162. July 2019 was $162. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.

Richmond Home Prices Trend

Median Price/SqFt | Graph Credits: Movoto.com

Richmond, VA Single Family And Multi-Family Homes

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Richmond, VA is $241,287, which indicates that home prices in Richmond are above the national average for all cities and towns in the United States. Single-family detached homes are the single most common housing type in Richmond, accounting for 48.72% of the city’s housing units.

Small one or two bedrooms houses are the most common type of single-family detached homes found in Richmond, Virginia. Richmond has a mixture of owner-occupied and renter-occupied housing. Other types of housing that are prevalent in Richmond include large apartment complexes, duplexes and a few row houses.

According to the report published by Richmond Association of Realtors, the total single family housing inventory at the end of July 2019 decreased 15.28% to 2,533 existing homes available for sale.

Over the last 12 months the Richmond Metro Area (Consisting of Chesterfield, Hanover, Henrico, Richmond Cityarea) has had an average of 1,145 closed sales per month. This represents an unsold inventory index of 2.21 MSI for this period.

According to the preliminary Richmond market trends, this area has experienced some upward momentum with the increase of average price this month. Prices of single family homes in the “Richmond Metro Area” went up 4.11% in July 2019 to $320,486 versus the previous year at $307,820.

As far as condos and multi-family homes are concerned, the Richmond market area has experienced some downward momentum with the decline of average price this month. Prices of condos in Richmond dipped 4.78% in July 2019 to $260,962 versus the previous year at $274,058.

Currently, there are 393 single family homes for sale in Richmond, VA on Zillow. Additionally, there are 195 single family homes for rent in Richmond, VAUnder potential listings, there are about 32 Foreclosed and 130 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Richmond, VA Foreclosures And Bank Owned Homes 2019

According to Zillow, in Richmond 4.5 homes are foreclosed (per 10,000). This is greater than the Richmond Metro value of 1.1 and also greater than the national value of 1.2. The percent of delinquent mortgages in Richmond is 1.0%, which is lower than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Richmond homeowners underwater on their mortgage is 8.9%, which is higher than Richmond Metro at 7.9%.

Foreclosures in Richmond 286
Homes for Sale in Richmond 1,102 (RealtyTrac)
Recently Sold 5,362
Median List Price $269,000 (0% ⇑ vs May 2018)

There are currently 286 properties in Richmond, VA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,102. In June 2019, the number of properties that received a foreclosure filing in Richmond, VA was 39% lower than the previous month and 44% lower than the same time last year.

Best Places To Buy Real Estate In Richmond, VA

If you are looking to buy real estate in Richmond, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Richmond real estate and you should be able flip it for a lump sum profit.

When looking to invest in Richmond real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Richmond investment property should be low. The neighborhoods in Richmond must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 145 neighborhoods in Richmond. There are 97 elementary schools, 35 middle schools, 37 high schools and 81 private & charter schools.

Some of the best neighborhoods in Richmond, VA are The Fan, Meadowbook and Laurel. The Fan has a median listing price of $525,000, making it the most expensive neighborhood. Oakwood is the most affordable neighborhood in Richmond, VA with a median listing price of $63.8K.

Here are the 10 best neighborhoods in Richmond to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

1

 W Broad St / Hermitage Rd

2

 S Belvidere St / Spring St

3

 Virginia Commonwealth U / W Cary St

4

 W Main St / S Robinson St

5

 E Leigh St / N 7th St

6

 S Meadow St / Lakeview Ave

7

 Grove Ave / N Belmont Ave

8

 E Franklin St / N 2nd St

9

 Ellwood Ave / N Thompson St

10

 Blanton Ave / Douglasdale Rd

Should You Invest In Richmond VA Real Estate In 2019?

Is it worth buying a house in Richmond, VA? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Richmond is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Richmond housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Richmond but we have collected ten evidence based positive things for those who are keen to invest in the Richmond real estate in 2019.

Investing in Richmond real estate will fetch you good returns in the long term as the home prices in Richmond have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Richmond real estate market which can help investors who are keen to buy an investment property in this city.

1. It’s the Capital

Being the capital of Virginia is not reason enough to make a Richmond real estate investment. However, being a capital city results in multiple reasons it is a good housing market to invest in. For example, government employment for better or for worse is relatively high in state capitals.

That creates a large number of good paying jobs, raising property values. You see the same thing on a grander scale in the wealthy suburbs around Washington, D.C. Being the state capital and the central transportation hub for the region resulted in it being a center of commerce and trade.

This led to many law firms and banks having their headquarters here. That is aside from the hospitals and educational institutions in the area. This contributed to the average salary hovering around 50,000 dollars a year.

2. The Large Student Market

The Richmond VA real estate market is perfect for those who want to cater to the student market. It is incredibly diverse. The Virginia Commonwealth University campus is home to roughly 30,000 students. That’s aside from the University of Richmond satellite campus. Virginia Union University hosts nearly two thousand college students.

Small private schools like Virginia College and Fortis College host just a few hundred students. There are Baptist, Presbyterian and several other seminaries in the city, as well. You could find a Richmond real estate investment property near any of these campuses (or in easy reach of several) and rent out to a steady stream of students.

3. The Tourist Market

Yes, Richmond, Virginia has a tourist market. More than seven million people a year pass through. They may be visiting one of the oldest cities in the United States to tour Revolutionary era or Civil War sights. Others attend weddings and graduations in the area.

The city is considering becoming more friendly to short-term rentals, something that is has been illegal to date in the Richmond VA real estate market unless there were major events that resulted in an exemption.

If passed, a certificate of rental that costs several hundred dollars would have to be acquired to rent out a property in the Richmond housing market for short periods of time.

4. The Growing Retirement Communities

In 2017, Richmond made multiple lists of the best places to retire in the United States as well as top places to live. Points in favor of the Richmond VA real estate market included its intellectual and creative life, affordability, and quality of healthcare. This has led to a spate of new construction for active adult communities.

5. The Massive Redevelopment Effort

Richmond has crafted a 1.5 billion dollar redevelopment plan for the area around Richmond Coliseum. Large sections of downtown will be renovated and redeveloped to include new condos, retail and commercial space.

It will be home to a new transit building, arena and mixed use developments. This will increase the value of all properties in the Richmond housing market in and around downtown.

6. The Balmy Tax Climate

Virginia has a relatively low tax burden. The state and local tax burden per capital is tenth lowest in the country. Property taxes average 0.85 percent of assessed value, well below the 1.1 to 1.2 percent national average. A side benefit of the affordable Richmond VA real estate market is an even lower than average property tax bill.

7. The Relative Landlord-Friendly Regulations

The Richmond housing market is quite landlord friendly. There is no limit on late fees as long as they are written into the lease. Written leases aren’t required unless for more than 12 months. There are no notice of entry law in the state.

The only area where Virginia falls short is the long, complex eviction process. The average Richmond real estate investment property owner offsets this by having a large security deposit and thorough background checks.

Security deposits are typically limited to two month’s rent. You can charge an application deposit on top of the security deposit.

8. The Overall Value

The average home in the Richmond VA real estate market costs around 225,000 dollars. That’s right in line with the national average. However, the Richmond housing market is a better value when you compare median income to housing costs.

Yet this doesn’t decrease demand for rental units, since there are so many students in the area. On the flip side, the fact that Richmond area homes are relatively affordable means that Richmond real estate investment properties have plenty of space to appreciate.

9. The Strong Economy

Unemployment in the Richmond area hovers around three percent, half a point or so below the national average. More importantly, the area has seen better than average job growth over the past few years. In 2017, they were among the top 25 metro areas with the fastest job growth.

Future job growth is expected to be 35 percent over the next ten years, several percentage points higher than the national average. This will contribute to steady population growth as college graduates find jobs in the area and end up raising their families here.

10. The Strong ROI for Rental Properties

The main reason you would buy a Richmond real estate investment property is for the rental income. However, the more important factor is the return on the investment. In this regard, the Richmond housing market shines. The median rental rate is roughly 1300 dollars a month for an apartment.

Rental rates are increasing at nearly eight percent a year due to demand. This will result in continued increases for rents of Richmond real estate investment properties for the foreseeable future. If the economy were to decline, the fact that there are so many students in the area will bolster rental rates in the Richmond VA real estate market.

Richmond Real Estate Investment

Maybe you have done a bit of real estate investing in Richmond, VA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Richmond real estate investment opportunity would be a key to your success. in If you invest wisely in Richmond real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Richmond investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Richmond, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Richmond, VA. The Richmond area is historic, but it is already a modern city embracing smart growth and development. It is a stable housing market that offers good returns without massive regulation or heavy taxes.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Richmond, VA is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

Richmond Real Estate Investment

The aim of this article was to educate investors who are keen to invest in Richmond real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

Another sizzling market to choose for investment is the Greensboro real estate market. The Greensboro real estate market offers an ideal situation for investors seeking steady, predictable returns. Return on investment is relatively high and not expected to decline, while property itself is relatively cheap.

The job market is strong enough to slowly attract residents and increase pay rates, but it won’t result in a massive influx of new construction to undermine existing property values. The area is large and diverse enough to give investors a choice of property types and markets to serve.

The Greensboro real estate market is incredibly affordable. The median home price is 161,000 dollars. This is one fourth lower than the average home price for the country as a whole. And that’s despite Greensboro real estate having appreciated at four to five percent a year for the past few years.

The other best place to invest in real estate is Chandler, AZ. The Chandler area offers strong market fundamentals in addition to a favorable tax and regulatory climate. This is in addition to a plethora of high paying jobs that attract new residents and niche markets that are willing to pay higher rents in exchange for convenience and proximity to amenities.

The median rent in Chandler hovers around 1700 dollars a month. This is about a hundred dollars more per month than the median rent for the Phoenix metro area. The rent you’d receive for a single family Chandler real estate investment would of course be higher.

The Chandler housing market is home to a decently sized student population, but its economy isn’t dependent on the rise and fall of one school. The Chandler-Gilbert Community College system caters to local students. Western International University and Ottawa University have campuses here.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Economy
https://wtvr.com/2017/08/25/the-25-metro-areas-with-the-fastest-job-growth
https://www.bestplaces.net/economy/city/virginia/richmond

Student market
https://en.wikipedia.org/wiki/Richmond,_Virginia#Demographics
https://www.collegesimply.com/colleges-near/virginia/richmond

Tax climate
https://taxfoundation.org/state/virginia

Overall value
https://realestate.usnews.com/places/virginia/richmond

Strong ROI
https://www.rentjungle.com/average-rent-in-richmond-va-rent-trends

Landlord friendly
https://www.avvo.com/legal-answers/va-landlord-tenant-law-question-377594.html
https://www.avail.co/education/laws/virginia-landlord-tenant-law

Redevelopment
https://www.richmond.com/news/local/city-of-richmond/update-stoney-to-introduce-now–billion-richmond-coliseum-redevelopment/article_3c6d3b83-8c21-5f19-ab73-995b2f57e6a5.html

https://www.wric.com/news/local-news/richmond/how-richmond-plans-to-pay-for-the-navy-hill-redevelopment-project

Retirement
https://www.nbc12.com/story/34455570/richmond-makes-list-of-top-25-best-places-to-live-in-the-us/
https://www.kiplinger.com/article/real-estate/T006-C000-S002-richmond-virginia-a-smart-place-to-retire.html

About Richmond
https://en.wikipedia.org/wiki/Richmond,_Virginia

Tourism
https://www.britannica.com/place/Richmond-Virginia
https://vpm.org/news/articles/3499/richmond-officials-are-drafting-new-regulations-on-airbnb-other-short-term
https://richmondbizsense.com/2019/04/08/short-term-home-rental-permits-cost-300-proposed-city-rules

Housing Market Data, Trends & Statistics
https://www.zillow.com/Richmond-va/home-values
https://www.trulia.com/real_estate/Richmond-Virginia
https://www.redfin.com/city/17149/VA/Richmond/housing-market
https://www.movoto.com/richmond-va/market-trends
https://www.neighborhoodscout.com/va/richmond/real-estate
https://www.realtor.com/realestateandhomes-search/Richmond_VA/overview
https://www.realtytrac.com/statsandtrends/va/richmond-city-county/richmond https://rarealtors.com/housingreports


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