Market Update: The New Home market is gaining serious momentum, especially in Chesterfield along the Route 288 corridor and along I-295 in Short Pump and Glen Allen.
Supply issues still exist in the entry price points (below $400k), but from $500k and up, buyers are gaining leverage. Price pressure is coming from a labor shortage, as well as material shortages, driving builders into increasingly higher price points as well as compressing their margins.
Many new large national builders have entered the Richmond market and they are already changing the way Richmond builds and buys new homes. National builders tend to have lower costs, multiple highly decorated models, and the ability to build a lot of homes quickly.