Why Buyers and Sellers Face Very Different Conditions in Richmond, Chesterfield and Henrico

The 2025 housing market feels very different depending on whether you are buying or selling. While buyers are working hard to navigate affordability challenges, sellers may still hold the advantage in many neighborhoods. Understanding these differences will help you make the right move and take advantage of current conditions.

Buyers Are Still Facing Challenges

Today’s buyers are balancing three major factors: mortgage rates, home prices and available inventory.

Mortgage rates remain higher than they were a few years ago, which means many buyers are facing larger monthly payments. Even a small difference in rates can change a buyer’s purchasing power by hundreds of dollars per month. In Richmond, Chesterfield and Henrico, where prices have held steady or even risen slightly, affordability continues to be one of the biggest hurdles for buyers.

According to the Mortgage Bankers Association (MBA), mortgage applications have fluctuated as buyers react to changes in rates. Some buyers have chosen to wait, hoping for lower rates or for more homes to come on the market. Others are carefully calculating their budgets and shopping with caution, often comparing several homes before making an offer.

The data shows that as mortgage rates tracked by Freddie Mac move up or down, buyer demand changes quickly. Even a small dip in rates can bring more buyers into the market, which is why affordability remains the driving force for many purchase decisions.

Sellers Have the Advantage

While buyers are cautious, sellers are benefiting from conditions that still lean in their favor. Inventory remains limited across Richmond, Chesterfield and Henrico, which means homes that are priced correctly and marketed professionally often attract strong attention.

The National Association of Realtors (NAR) continues to report that months’ supply of inventory is below what is considered a balanced market. This gives sellers leverage because buyers have fewer choices.

If you list your home now, you have the chance to reach serious, motivated buyers who are eager to act before rates change again. Because there are fewer listings compared to previous years, you are competing with a smaller pool of homes — which can mean faster offers and better terms.

Preparing your home with professional photography and staging and a competitive pricing strategy can help you stand out even more.

What This Means for the Local Market

In our area, the market is showing a mix of cautious optimism. Buyers are active but selective, and they are willing to wait for the right home that meets their needs and budget. Sellers who understand this dynamic and work with a knowledgeable local agent to set the right price are still seeing strong results.

It is also worth noting that the market could change quickly. If rates drop further, more buyers will re-enter — but more sellers might also decide to list. Acting now can give you an edge before the competition increases.

How to Navigate This Market

Whether you are buying or selling, having the right strategy matters.

• For Buyers: Work with an agent who can help you explore financing options, stay updated on rate changes and move quickly when the right home hits the market.

• For Sellers: Prepare your home, price it strategically and market it across multiple channels to reach the most qualified buyers.

Bottom Line

Buyers and sellers are experiencing two very different realities right now. Buyers are watching affordability closely and waiting for opportunities, while sellers continue to benefit from lower competition and steady demand.

If you are thinking about buying or selling in Richmond, Chesterfield, Henrico or the surrounding areas, now is the time to create a plan. Let’s connect today to talk through your goals and position you for success in this market.