Richmond Million Dollar Homes

May 13, 2009

The real estate market in Richmond is fast changing. The spring surge in sales restored some confidence back to the market that home prices were now stabilizing after more than 10 months of sales decline. Home prices generally are now some 12% to 15% lower than the peaks for various types of dwellings.

Million dollar homes market outlook

One particular important housing market segment in Richmond is the new home construction market for small home builders. The following data summarized the recent sales data for million dollar homes in Richmond. Most of these homes (over 78%) were under 15 years old.

Price (‘000) No. Homes Av. Sale Mth To Sell
1,000-1,250 73 10 7.3
1,251-1,500 44 5 8.8
1,501-1,750 23 2 11.5
1,751-2,000 16 1 16
2,001-3,000 9 1 9
Total 165 19 8.7

The supply for million dollar homes in Richmond is the highest and these homes are taking a longer time to sell as compared with lower priced homes. In view of the weak economy, the market for new home sales may take some time to stabilize.

gatedmansion2.jpgBuying or selling a million dollar home

For a home seller, the financial implication is loss equity in a declining market if the home is not sold in a reasonable time period. The first 3 weeks are the most crucial time period when buyers interest is the highest. If the home is not priced right to sell, it may remained unsold longer than it is necessary.

For you as a home buyer, a soft market offers the opportunity to look for the right home in the neighborhood they like. In a buyer’s market, there is less pressure for you to rush and make a hasty decision to buy your home. Although sellers are more motivated to sell in today’s market, low ball offers are unlikely to be successful as market conditions are supportive of reasonable offers.

You can view the Richmond million dollar homes listed for sale here.

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