Richmond Buyers Have More Choices — But That Doesn’t Make the Decision Easier

https://www.youtube.com/watch?v=qbaiCevqAzk

Something interesting is happening as we head into the fall housing market:

Richmond buyers have more homes to choose from — but they’re becoming more hesitant about buying them.

Active listings across the Richmond area increased 20.9% in August compared with a year ago, while new listings rose 9.3%. Normally, you’d expect that much additional inventory to put significant pressure on prices. So far, it hasn’t. Richmond’s median asking price was $440,000 — still 2.4% higher than a year ago. 

More inventory doesn’t necessarily mean a weak market. It means buyers have choices again.

But Buyers Are Hesitating

The change in buyer psychology may be more interesting than the inventory numbers.

Virginia REALTORS’ latest survey showed its Buyer Activity Index falling from 38 in July to 28 in August. Half of the Realtors surveyed described buyer activity in their markets as low or very low, and the average number of offers per transaction fell to 1.6. (⁠Virginia REALTORS®)

Mortgage rates are certainly part of that. Mortgage News Daily ended Friday with the average top-tier 30-year fixed rate at 6.89%. (⁠Mortgage News Daily)

But I think there’s something else happening. The Richmond Fed’s latest report described buyer traffic across its district as flat and noted increased buyer anxiety and the need for more “handholding” from real-estate professionals. (⁠Federal Reserve)

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A few years ago, the challenge was often simply getting the house. Multiple offers. Escalation clauses. Decisions made within hours.

Today’s buyer has a different challenge: Should I buy now? Is the house priced correctly? Should I negotiate? What if rates fall? What if prices fall? What if I wait and neither happens?

Those are reasonable questions.

But more choices don’t automatically create better decisions. Better information does.

So How Should We Think About It?

First, more inventory is good news for buyers.

There may be more time to evaluate a property, more opportunity to negotiate price, closing costs or repairs, and more ability to walk away from a house that isn’t right.

That doesn’t mean every seller is ready to negotiate. Well-priced homes in desirable areas can still move quickly.

For sellers, the message is different:

More inventory means more competition.

Pricing and presentation matter more when buyers have alternatives. Pricing a home based on what the neighbor got six months ago — without understanding today’s competition — can be an expensive mistake.

And for buyers, I’d be equally careful about waiting simply because the market feels uncertain.

Don’t buy because you’re afraid of missing out. But don’t wait simply because you’re afraid of making an imperfect decision.

Run the numbers. Know the monthly payment you’re comfortable with — not merely the maximum amount a lender says you can qualify for. Understand where you have negotiating leverage. And if the right opportunity appears, be prepared to act.

It’s a Decision-Maker’s Market

We spend a lot of time trying to label markets:

Is it a buyer’s market or a seller’s market?

I’m not sure that’s the most useful question right now.

Increasingly, it’s a decision-maker’s market.

The advantage goes to buyers who understand their numbers before they shop and sellers who understand today’s competition rather than yesterday’s market.

Richmond buyers have more choices than they did a year ago. Prices haven’t simply rolled over. Mortgage rates remain elevated. And buyers are understandably more cautious.

That makes today’s market less frantic — but not necessarily easier to navigate.

My advice?

Don’t let uncertainty make the decision for you. Understand the market. Run the numbers. Know your options. Then make the decision that makes sense for you — even if that decision is to wait.

Have a great week,

Paul Cantor

Cantor Team Home Loans | TrustMor Mortgage Company

NMLS #49523 | Equal Housing Lender

Better Mortgage Decisions Start With the Bigger Picture

A mortgage shouldn’t be evaluated in isolation. Your home, equity, debt, cash flow, taxes, investments and future plans can all affect which financing strategy makes sense.

Paul Cantor has spent more than 30 years helping Richmond-area homeowners, buyers and real-estate investors evaluate those pieces together—not simply shop for a loan.

Whether you’re considering buying, moving up, refinancing, accessing equity or investing in real estate, the goal is the same: understand your options before making the decision.

Have a question about your situation? Let’s talk.