A sneak peeks at what you can expect from the Chesterfield real estate market in 2020.
The real estate market has been smoothly humming along in Chesterfield for the last several years, and all indicators point to continued growth in 2020.
Virginia real estate agents are enjoying the abundance of buyers and sellers in this hot Chesterfield market. Seller’s agents are especially well-positioned in this market, as the low inventory drives home values up and creates high demand for their listings. And buyer’s agents are enjoying the influx of buyers in the market.
If you don’t yet have your Virginia real estate license, now is a great time to go for it as 2020 looks to be another strong year for real estate agents in Chesterfield.
Let’s look at the top 2020 Chesterfield real estate market trends and how they will impact you and your real estate clients.
Fierce Buyer Competition
Chesterfield is currently in a seller’s market. There are more buyers than there are homes on the market. So you should expect heavy buyer competition in 2020. This could mean all-cash offers, multiple offers on a listing, and homes potentially selling for more than the asking price (especially in the lower price ranges where the competition is most intense).
For Virginia real estate agents representing buyers, this means educating your buyers from Day One. Explain the importance of getting pre-approved for a mortgage loan before looking at homes. And make sure your buyers know to bring their strongest offer; this isn’t the time to “leave room for negotiation.”
And if you’re a seller’s agent, make sure your clients are prepared for a quick sale. The average number of days a listing sits on the market is down to 35 in Chesterfield County, so when your sellers list, they better start getting ready for their move!
Increasing Real Estate Values
2019 was a solid year for Chesterfield real estate. The average sales price grew to $260,000, with sellers enjoying a 99% list-price-to-sales-price ratio.
The Zillow Home Value Index (which estimates the median value of all local homes, as opposed to using the sales prices of recently sold properties) confirms the strength of the Chesterfield real estate market. The index showed a value increase of 5.4% in 2019 and is projecting values to rise by another 3.4% through 2020.
Increasing home values are great for sellers, who will earn more from a sale in 2020 than they would have in prior years. Increasing values are also great for Virginia real estate agents because higher sales prices mean higher commission checks and greater income opportunity.
Mortgage Interest Rates to Remain Low
In 2018, mortgage experts predicted that mortgage interest rates would begin to rise in 2019 and continue rising through 2020. But with lower-than-expected inflation and uncertainty on the global stage, this has not been the case.
Factoring the developments of 2019 into the equation, leading housing authorities (like the National Association of Realtors® and Fannie Mae) are forecasting interest rates of under 4% through 2020 on 30-year-fixed mortgages.
For Virginia real estate agents representing buyers, this is great news for your clients! They aren’t too late; they can still lock in a historically-low interest rate. Explain to your buyers that an interest rate increase of just 1% can lower purchasing power by 9-11%. So they should take advantage of 2020’s low-interest rates and buy this year.
On the whole, Chesterfield real estate performed well in 2019 and should see continued prosperity through 2020. Don’t miss out on the opportunities provided by this solid real estate market!