Richmond Real Estate Market Update – February 2025

Market Shifts: Supply Increases While Sales Slow Down

The Richmond real estate market in February 2025 is showing signs of growing inventory and shifting demand. While more properties are becoming available across all home types, sales have slowed compared to last year, leading to price adjustments in some segments. Detached homes and townhomes are seeing the biggest impact, while condos remain relatively balanced.

Let’s take a closer look at the key metrics shaping Richmond’s market this month.

Key Market Stats for February 2025

Detached Homes

  • Total Active Listings: 497 (+13.7% YoY)
  • Sales: 40 (-42.0% YoY)
  • Days on Market (DOM) Average: 27 (-51.8% YoY)
  • MLS® HPI Benchmark Price: $2,139,000 (-1.7% YoY)


Condos

  • Total Active Listings: 731 (+45.0% YoY)
  • Sales: 98 (-8.4% YoY)
  • Days on Market Average: 42 (+16.7% YoY)
  • MLS® HPI Benchmark Price: $733,800 (-2.2% YoY)


Townhomes

  • Total Active Listings: 266 (+77.3% YoY)
  • Sales: 39 (-29.1% YoY)
  • Days on Market Average: 39 (-13.3% YoY)
  • MLS® HPI Benchmark Price: $1,109,300 (-2.5% YoY)

Market Trends & Expert Insights

  • Detached Homes: More Listings, Fewer Sales, Faster Selling Times
    The detached home market saw a sharp drop in sales (-42.0% YoY), even as listings rose by 13.7% YoY. Despite the slower demand, homes are selling faster, with days on market dropping by 51.8% to just 27 days on average. This suggests that while fewer transactions are happening, well-priced homes are still moving quickly. Prices have declined slightly (-1.7%), reflecting buyer caution.
  • Condos: Balanced Despite a Surge in Inventory
    Richmond’s condo market has seen a massive 45% increase in active listings over the past year, but sales have remained relatively stable (-8.4% YoY). While properties are taking slightly longer to sell (+16.7% YoY), price adjustments have been moderate, with the MLS® HPI Benchmark Price dropping only 2.2% YoY. This segment remains relatively balanced, though buyers now have more options.
  • Townhomes: Supply Surge Leading to a Pricing Shift
    Townhomes have experienced the largest inventory increase (+77.3% YoY), while sales have declined (-29.1% YoY). Despite this, homes are selling slightly faster than last year, with a 13.3% drop in days on market. However, the significant increase in supply has pushed prices down by 2.5% YoY, signaling a shift toward a more buyer-friendly market.
  • Sales-to-Active Ratio Insights:
    • Detached Homes: 8.0% (Buyer’s Market)
    • Condos: 13.4% (Balanced Market)
    • Townhomes: 14.7% (Balanced Market, leaning toward buyers)

Richmond’s detached home market is now firmly in buyer’s market territory, while condos and townhomes remain more balanced but with downward price pressure due to rising inventory.

What This Means for Buyers & Sellers

For Buyers:

  • Buyers, especially in the detached market, have more negotiating power as sales slow and prices adjust.
  • Condo buyers benefit from more choice, but demand is keeping prices from dropping significantly.
  • Townhome buyers may find better pricing opportunities, as sellers adjust to increased supply.

For Sellers:

  • Detached homeowners must price competitively to stand out in a slowing market.
  • Condo sellers need to be mindful of growing competition—well-staged and well-priced units will sell faster.
  • Townhome sellers should be prepared for longer selling times and potential price negotiations.

Final Thoughts

Richmond’s market is undergoing a shift, with higher inventory across all property types and moderating prices. Buyers now have more choices and room to negotiate, while sellers will need to adjust pricing strategies in a market that is no longer as hot as it was a year ago.

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