The Richmond, VA metro area housing market in January 2025 presents a complex landscape characterized by contrasting trends in pricing, sales, and inventory. The Median Sales Price has decreased by 4.4% year-over-year, settling at $382,500. In contrast, the Median List Price has risen by 10.7% to $409,495, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics also reflect this dichotomy. The median Price Per Square Foot has increased by 3.7% to $210.61, while the Median List Price per square foot has seen a 3.2% rise to $219.96. These figures suggest a moderate appreciation in property values, despite the overall decline in sales prices.

Sales activity shows a mixed performance. The number of Homes Sold has increased by 5.7% year-over-year, reaching 938 units. However, Pending Sales have dropped significantly by 19.5%, totaling 1,090. This decline in Pending Sales could indicate a slowdown in future transactions, potentially influenced by the rising list prices.

New Listings have decreased by 9.6% to 1,152, and inventory has shrunk by 5.1% to 1,879 homes. The Months of Supply have also decreased by 20.0%, now standing at 2.0 months, suggesting a tighter market with limited options for buyers. This reduced supply could be contributing to the upward pressure on list prices.

The Median Days on Market have increased slightly by 3.0% to 27 days, indicating a marginal slowdown in the pace at which homes are sold. The average sale to list ratio remains stable at 99.8%, with a slight year-over-year increase of 0.1%. Additionally, the percentage of Homes Sold above list price has risen by 0.6% to 32.8%, reflecting competitive bidding in certain segments of the market.

Price Drops have become more common, with a 9.6% increase year-over-year, now affecting 29.2% of listings. This trend suggests that sellers may be adjusting their expectations in response to market conditions. Meanwhile, the percentage of homes going off the market within two weeks has decreased by 2.8% to 38.3%, indicating a slight reduction in the urgency of transactions.

Overall, the Richmond housing market in January 2025 is characterized by rising list prices and a decrease in sales prices, alongside a contraction in inventory and New Listings. These dynamics suggest a market in transition, with potential implications for both buyers and sellers as they navigate the evolving landscape.