Ask a real estate agent how the market is doing and they will probably tell you that it is "great" or that it is "HOT". What exactly do we mean by that?
For the purposes of this blog, I'm defining Midlothian, VA as the zip codes 23112, 23113 and 23114.
In Midlothian, VA there are a few key statistics that tell us the strength of our real estate market. The first statistic that I think everyone cares about most is price! The median home price is the price at which 50% of the homes sold below and 50% of the homes sold above. In Midlothian, the median home price was $289,000 in February of 2018. This is up 6.06% over February of 2017. This is a healthy increase in price.
Another statistic that we look at to determine the health of the market is the months of supply. This is the number of houses that are actively listed for sale and how many months of houses we have on hand. We currently have 1.95 months of supply in Midlothian, VA. This means that if no other homes come on the market, at the current rate of sales, we would be sold out of houses in less than two months. Our months supply of inventory is down 21.5% since February of 2017.
When inventory drops below 6 months we are in a seller's market. This means that many buyers are competing for the same homes and home prices tend to trend upward. At six months of inventory we are in a neutral market, meaning neither sellers nor buyers have a particular advantage. At more than six months of inventory, we are in a buyer's market. This means that buyers typically have an advantage when it comes to negotiating. There are a lot more homes on the market than there are buyers, so buyers can be very choosy when it comes to the home they select.
The last statistic that I would like to share with you is the Median Days on Market. From the time a home is put on the market for sale to the time it goes under contract is the number of Days on Market. The median days on market is the number of days at which 50% of the homes that went under contract were below and 50% of the homes that went under contract were above. In Midlothian, VA in February of 2018 the median days on market was 18 days. This is down 23.4% over February of 2017, meaning that homes are selling much faster than they did a year ago.
Overall, the market in Midlothian, VA is very healthy and it is also very competitive. Sellers need to be aware that homes are selling quickly and they may have to move quickly once they put their home on the market. Buyers need to be aware that they have a lot of competition for the available houses and they need to be prepared to make offers quickly and at favorable terms to the seller if they are to be selected.
Midlothian VA Real Estate – Jane Renger, Realtor with Exit Elite Realty in Midlothian VA. I specialize in helping sellers, buyers and investors in the Midlothian, Chesterfield, Powhatan, Richmond and surrounding areas. I love negotiating and advocating for my clients to help them obtain excellent deals on real estate. Jane Renger – 804-397-9796.