The Richmond, VA metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has increased to $388,500, reflecting a modest year-over-year (YoY) growth of 2.0%. Similarly, the Median List Price has risen to $410,000, marking a 1.9% increase YoY. These figures suggest a steady appreciation in home values, albeit at a slower pace compared to previous years.

In terms of Price Per Square Foot, the median price has reached $215.43, up by 2.4% YoY. The Median List Price per square foot has seen a more significant rise of 7.4%, now standing at $225.78. This indicates a stronger demand for space, potentially driven by buyers seeking larger homes or more desirable locations within the metro area.

Despite the increase in prices, the number of Homes Sold has decreased significantly, with 1,005 Homes Sold, representing a 14.9% decline YoY. Pending Sales have also dropped by 12.2%, totaling 1,240. This decline in sales activity could be attributed to various factors, including higher interest rates or a limited supply of desirable properties.

New Listings have decreased by 16.4% YoY, with 1,239 properties entering the market. Inventory levels have also contracted, down by 8.8% YoY to 1,874 homes. However, the Months of Supply have increased by 20.0% YoY, now at 1.90 months. This suggests that while fewer homes are being listed, the existing inventory is taking longer to sell, potentially due to the higher price points or changing buyer preferences.

The Median Days on Market have increased slightly by 4.0% YoY, now averaging 26 days. This indicates that homes are taking marginally longer to sell compared to the previous year. The average sale to list ratio has seen a slight decline of 0.3%, now at 99.8%, suggesting that sellers are receiving offers closer to their asking prices, but with less frequency than before.

The percentage of Homes Sold above list price has decreased by 5.7% YoY, now at 33.5%. This decline may reflect a cooling in competitive bidding situations. Conversely, the rate of Price Drops has increased by 8.0% YoY, with 26.9% of listings experiencing reductions. This could indicate that sellers are adjusting their expectations to align with current market conditions.

Lastly, the percentage of homes going off the market within two weeks has decreased by 3.1% YoY, now at 45.8%. This suggests a slight slowdown in the speed at which homes are being snapped up by buyers, possibly due to the aforementioned factors affecting sales activity.

Overall, the Richmond, VA metro area housing market in February 2025 is characterized by rising prices amidst declining sales and inventory levels. While demand remains strong, as evidenced by the price increases, the market is experiencing a shift that may require sellers to adjust their strategies to attract buyers in a more competitive environment.