The annual peak has passed.
Every year around this time the market softens as the Spring and Summer market transitions to Fall. Through June 2023, Zillow reports that the Richmond area was the second strongest housing market in the country (reporting 5.4% year over year, just behind Hartford Connecticut).
Falling median sale prices, sale-to-list ratios, and rising supply and marketing times are consistent with the softening in the market that is typically seen during this time of year (see first four graphs). The one market that is firmly bucking these trends is the sub 1,500sf market that shows much stronger demand. This is consistent with the current market forces that restrict affordability (see last graph).
Looking forward to this fall, home prices will likely continue to increase in affordable markets and stabilize in other markets. The fall and winter typically sees the sales of homes that failed to market in the summer months at a discount, with lower-condition homes being more prominent, artificially pulling down median sale prices from the actual market trend.