For the first time since the 2008 housing bubble, homes are going on the market en masse – and the Richmond, VA housing market is one of the hottest places in the United States.

Napier ERA President Jim Napier put this into perspective in the June, 2017 publication of Richmondmag.com:

"Six months' worth of inventory is considered a normal market that favors neither buyer nor seller. On average, the Richmond region has a little more than four months of inventory based on home sales from the first quarter of 2017."

Conditions remain tight throughout desirable Richmond areas:

• Fan District: 2.2 months of inventory
• Museum District: 2.2 months of inventory
• Wyndham: 3 months of inventory
• Northern Chesterfield: 3 months of inventory
• Henrico: 3 months of inventory

Millennials Driving Home Market Success in Richmond and Beyond

The seller's market in Richmond is an inspiration for communities all throughout the United States that want to see a vibrant housing market. And who is the economic engine behind it all? It's Millennials--the oldest of whom are about 35 today.

Institutions have long undervalued Millennial purchasing power. The effects of structural issues like the economic downturn coupled with huge and rising student debt have given the generation a pragmatic streak that looks askance at luxury items like diamonds and sports cars.

Now, however, Millennials are entering the housing market in greater numbers.

Suppressed earnings caused by weak economic conditions have given way to a robust employment market granting Millennials a chance to start fresh at building a family and pursuing homeownership.

With $200 billion in buying power and representing about 25 percent of the population, Millennials have come roaring onto the scene – bringing a merciful end to years of think-pieces and stale jibes about avocado toast.

Still, it's essential to approach the Richmond market with eyes open.

How to Succeed as a Millennial Buyer in Richmond's Seller's Market

Thanks to its many career and educational opportunities, paired with unbeatable amenities and a welcoming community, Richmond is a Millennial magnet.

To make the most of all it has to offer, Millennial home buyers should keep these steps in mind:

• Start with VHDA
  The Virginia Housing Development Authority has recently strengthened its offerings for first-time home buyers, making it a much more attractive resource. VHDA mainly serves current state residents, offering a range of 30-year fixed mortgage programs. These include special mortgage packages for veterans as well as rural development loans in designated areas.
• Use First Time Home Buyer Savings Plans (FHSP)
  FHSP was enacted by Virginia in 2014 to make it easier for aspiring home buyers to save money for their goals. Any state resident can establish an FHSP account, which is protected from state taxation. In such an account, Virginians can accrue up to $50,000 toward the cost of a down payment. Parents and relatives may choose to contribute to an accountholder's savings.
• Start With a Budget
  Buying a home is making sense for more and more Millennials, particularly those in the Richmond area. Rent has continued to increase over the last several years, while attractive home bargains continue to appear despite the strong market bent toward sellers. Developing a budget and comparing prospective housing options will help you make the right move.

Hire a Real Estate Agent You Can Trust

At Napier ERA, our real estate agents are dedicated to helping you achieve the dream of homeownership. Our team is made up of the foremost experts on the Richmond real estate market. We will give you the personalized guidance you need to make an informed decision each step of the way. Contact Napier ERA today.