Richmond's real estate market is experiencing a slowdown, with home sales significantly decreasing in the second quarter of 2025 compared to the previous year. This trend, characterized by cautious buyers and subdued demand, has led to a slight dip in property prices across all segments, including single-family homes, townhouses, and apartments. Properties are also taking longer to sell, indicating a shift towards a buyer's market.
In the second quarter of 2025, Richmond witnessed a notable drop in home sales. Single-family home sales saw a decrease of 29.4 percent when compared to the same period in 2024. Townhouse sales also experienced a decline, while apartment sales were down by 20.6 percent. This overall reduction in transaction volume suggests a more hesitant buyer pool.
While sales have slowed, the impact on prices has been more moderate. The price of a single-family home in Richmond, which hovers slightly above $2.1 million, dropped by 2.9 percent. Townhouse prices saw a more significant decrease of 5.6 percent, with the average price still close to $1.1 million. Apartment prices experienced a 5.1 percent drop, bringing the home price index for apartments to $708,000 in Q2 2025. City officials attribute these shifts to buyer caution, influenced by ongoing concerns about borrowing costs and economic uncertainty.
Adding to the picture of a cooling market, homes across all categories are staying on the market longer. The time it takes for properties to sell has increased, ranging from 30 to 37 days. This extended listing period further supports the assessment of a buyer's market, where demand is described as "subdued."