Richmond Real Estate Market Update – July 2025

Sellers Adjust to Buyer-Driven Trends as Inventory Rises Again

July 2025 continues the trend of increased inventory and longer selling times across Richmond’s housing market. While the number of listings builds steadily, buyer activity is struggling to keep pace, creating a more competitive environment for sellers. Price reductions are becoming more common, especially in the townhome and condo segments, as negotiation power shifts further into buyers’ hands.

Below is a breakdown of the latest data and key trends.

Key Market Stats for July 2025

Detached Homes

  • Total Active Listings: 690 (+22.6% YoY)
  • Sales: 60 (-1.6% YoY)
  • Days on Market Average: 50 (+66.7% YoY)
  • MLS® HPI Benchmark Price: $2,087,000 (-4.9% YoY)

Condos

  • Total Active Listings: 1,002 (+34.0% YoY)
  • Sales: 132 (-5.0% YoY)
  • Days on Market Average: 39 (+14.7% YoY)
  • MLS® HPI Benchmark Price: $709,800 (-3.2% YoY)

Townhomes

  • Total Active Listings: 390 (+35.9% YoY)
  • Sales: 50 (-3.8% YoY)
  • Days on Market Average: 30 (+42.9% YoY)
  • MLS® HPI Benchmark Price: $1,093,800 (-5.7% YoY)

Market Trends & Expert Insights

Detached Homes: Longer Waits, Modest Price Drops

Detached home sellers are facing a slower-paced market. Although active listings are up 22.6% year-over-year, sales have held relatively steady—down just 1.6%. However, the average time on market has surged to 50 days, indicating weakening buyer urgency. Prices have declined nearly 5% YoY, reflecting the increasing pressure on sellers to be flexible.

Condos: Balanced, But Cooling

The condo market shows continued signs of cooling. Listings rose by over 34%, while sales dropped modestly. With an average of 39 days to sell, buyers have more time to consider their options. The benchmark price slid 3.2% YoY, and with inventory growth outpacing sales, pricing will likely remain soft in the coming months.

Townhomes: Sharpest Price Decline

Despite a relatively mild drop in sales, townhomes saw the steepest price decline at 5.7% YoY. The number of active listings grew by 35.9%, and homes now take an average of 30 days to sell, up from 21 last year. The increase in inventory without matching demand signals further room for price adjustments if this trend continues into fall.

Sales-to-Active Ratio Snapshot:

  • Detached: 8.7% → Buyer’s Market
  • Condos: 13.2% → Balanced Market (buyer-leaning)
  • Townhomes: 12.8% → Balanced Market (softening)

What This Means for Buyers & Sellers

For Buyers:

  • More inventory = more options. Especially in the condo and townhome markets, buyers can take time, negotiate harder, and watch for price reductions.
  • Detached homes remain appealing for those who are patient—some sellers are more motivated.

For Sellers:

  • Pricing strategy is critical. With sales slowing and time on market increasing, competitive pricing is the key to avoiding stale listings.
  • Condos and townhomes may require enhanced marketing efforts and flexibility in pricing to attract attention.

Final Thoughts

Richmond’s market in July continues to transition into a more buyer-friendly phase, marked by growing inventory, longer selling periods, and modest price declines. While the market isn’t crashing, it is correcting—and both buyers and sellers need to be agile in their approach. As we head into late summer, watch for continued buyer hesitancy and strategic pricing adjustments from motivated sellers.

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