If you’re thinking about moving, then there’s a lot to consider. Some things you can’t control like inflation, mortgage rates, and supply and demand. Other things you CAN control like getting your finances in order, planning for the best outcome by partnering with the right professionals, and determining what items are negotiables on your wish list and what items your new home absolutely must have. So let’s talk about the current real estate market in Richmond, CA, what you can expect, and the things you can do to ensure that you’re confident in your decision to – or not to – sell or buy in this market.
Real estate has certainly had its ups and downs since COVID shocked the world. When the world was shut down, so were real estate transactions. Then we saw a complete 180 degree shift when the market spiked and many homes in the Bay Area were going for up to $100,000 over asking. Next we braced ourselves for the mortgage rate rollercoaster. We saw rates plummet to historic lows in the 2.5% range and then jump to 7% and now they’re projected to live between 5.73% to 6.35% in 2023 according to financial experts. When demand was high, supply was low and sellers could expect multiple over asking offers. By mid to late 2022, supply still didn’t meet demand but the market regulated. The real estate market in Richmond, CA in November 2022 had adjusted. According to the California Association of Realtors®, the median price for a home was $666,000, 7% lower than last year at that time, a home was on the market for approximately 14 days, 41.9% of homes for sale reduced their price, but 101.7% accepted an offer at the new, lower list price.
Phew! No wonder there are so many questions about the real estate market in Richmond, CA! We’ve all heard a ton of information (and conflicting information) which has caused a lot of potential home buyers and sellers to wonder just what they should do. Is now a good time to sell? Is it a good time to buy? Here’s what you need to know:
Home Sellers and the Real Estate Market in Richmond, CA
The first thing to note is that this current market is not the market that we saw in mid 2021 to mid 2022. In that market, many sellers came to expect multiple over asking offers, maybe having their home sit on the market for a couple of weeks, and little to no upgrades or adjustments required for their home to sell for top dollar. Unfortunately, that boat has sailed. But here’s the good news: it’s still a Sellers’ Market! A Buyers’ Market by industry standards means that there is more than seven months of inventory on the market. A Seller’s Market has less than six month’s inventory. Currently we’re seeing around three months according to the National Association of Realtors®.
One reason is that we have a huge influx of Millennials in the market in search of their first home. As an article in Forbes explains: “At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.”
It’s a great time to sell because competition is low and demand is still high. Another thing to consider is the equity in your home. The average buyer was reported to have around $300,000 in equity to reinvest into a new home that better suits their needs. How would you use your equity!?! Call the Rick Fuller Team today for a FREE Fuller Home Valuation. (888) 950-RICK.
Home Buyers and the Real Estate Market in Richmond, CA
Maybe you’re thinking about selling your home and reinvesting that equity or maybe you’re a first time buyer wondering if now is a good time to buy. Yes! It’s still a great time to buy! Let’s face it, we’re in the Bay Area. If you’ve lived here any amount of time, it’s clear to see that real estate is a great investment. While we probably won’t see equity skyrocketing like in 2021, experts say that values will likely stay steady with no hint of the bubble we saw back in 2008.
If you’re a first time home buyer, let’s talk about rent. Did you know that rent went up an average of 17% between February 2021 to February 2022?!?! If you’re renting, then you DO know this and the struggle is real! Buying a home could mean putting that rent money into your future and not your landlord’s.
But what about down payments? It’s a common misconception that you need 20% down for a home. There are programs for qualified buyers with down payments as low as 3.5%. There are also options like VA and USDA loans with no down payment requirements for qualified applicants. The right lender can share all of the available options for your unique circumstances.
Now is a great time to sell and buy. The real estate market in Richmond, CA and the East Bay Area is still a strong investment. The market has adjusted and it’s still a Sellers’ Market. This means that if you want to sell your home, it’s critical that you choose the right real estate professional to price and market your home accordingly to get the best offers. Too high and you won’t get any offers. Too low and you’ll leave money on the table. On the other hand, buyers also need the right real estate professionals to make offers that get noticed and who are connected to reputable lenders so that you can be aware of the many incentives that may be available to help you purchase the home of your dreams.
Call the Rick Fuller Team today! Our team of Listing and Buyer Specialists work together to get you the best results. In this unique market, the only option is to hire the best real estate professionals. Call us today! (888) 950-RICK
