The market knowledge you need to dominate Henrico County real estate in 2020.
With the excellent schools, lots of green space, and proximity to Richmond, Henrico County real estate was in-demand for 2019 and will continue to be in 2020.
If you have a Virginia real estate license, you’re enjoying this strong market that’s brought you ample leads and increasing commissions. If you’ve been considering becoming a real estate agent, but don’t yet have your Virginia real estate license, 2020 is looking to be a solid year to launch your new Virginia real estate career!
Let’s look at what’s going on in Henrico County real estate and how you and your clients can benefit from the 2020 market.
Increasing Real Estate Values
From December 2017 to December 2018, Henrico County saw an exceptional increase of 9.2% in the average sales price, pushing the average value up to $262,000!
And home values are up all over the county. The Zillow Home Value Index (which estimates the median value of all local homes, not just the sales prices of recently sold properties) reported a growth of 4.1% in 2019. Zillow is currently estimating that the median value will continue to rise by another 2.4% in 2020.
Increasing values are a good sign of a strong market. The increase is great for sellers, who can get more money for their home this year than last year. It’s also great for Virginia real estate agents who benefit from higher commissions.
Decreasing Inventory, Leading to Increased Buyer Competition
With active inventory down 28% from December 2018 to December 2019, there are more buyers in the market for a Henrico County home than there are homes available. Henrico County will continue to experience a seller’s market in 2020, making for increased competition amongst buyers.
If you’re a Virginia real estate agent, it’s your job to educate your buyers. Make sure they get pre-approved before they start their home search so they’re ready to show sellers that they’ll have no problem securing financing. And advise them to bring their highest and best offer since properties are typically selling for 99.5% of the asking price in an average of just 34 days.
Mortgage Interest Rates to Remain Low
While buyers may struggle to compete in 2020’s seller’s market, they still have a very compelling reason to buy now: low mortgage interest rates.
Experts were originally expecting rates to rise throughout 2019 and 2020, but lower-than-expected inflation and instability in the global economy kept interest rates low throughout 2019. With these changing circumstances, experts now expect interest rates to remain low through 2020. In fact, six of the leading housing authorities in the US are all forecasting that the interest rate on a 30-year-fixed mortgage will remain under 4% for 2020.
If you’re a Virginia real estate agent whose buyers failed to make their move in 2019, it’s not too late for them to get a historically low-interest rate. Remind your buyers that a lower interest rate means they can afford to spend more on their homes. An interest rate drop of just 1% can add $30,000 to your client’s budget! Mortgage interest rates were at 4.94% in November 2019, so tell your buyers the good news and make 2020 the year they buy their new home.
You and your clients can look forward to a prosperous 2020 in Henrico County. Enjoy!
Interested in the real estate industry? Start your career today as a Virginia real estate agent!