Market Update

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The Charlottesville Area Association of Realtors (CAAR) has released its 2nd quarter market report and here is a LINK to the full report. If you are interested in your particular location, there are links at the bottom for each individual county and city.  (Our “market area” (defined as Charlottesville, Albemarle, Fluvanna, Greene, Nelson and Louisa)  Here’s a quick summary of the report:

While the market report focuses only on the second quarter, I’d like to talk about the market “year to date”.  This is the first time in the last several years that the number of sales in our market area as decreased from the year before, and as stated above, the days on market increased as well, which is also a change from years past in which it steadily went down.

In contrast the number of sales, home prices have continued to increase in the area.  The average sale price increased from $374,309 to $382,753 during same period YTD over last year, and has been increasing at a conservative pace since the recession ended.  However, the number of available listings has also declined over last year, which has likely caused prices to increase as well due to high demand and low supply.

So what does it all mean?  There are many ways to interpret the information, and I am certainly not an economist.  However, I have been selling real estate in this area for 22 years and have seen the market in many, many different conditions.  When I first started in 1997 with my mom, it was completely normal for her alone to have 25 listings at one time in Forest Lakes (which at the time was less than half the size it is now).  That sounds crazy now since its hard to find 25 total active listings sometimes in all of Forest Lakes!  But that was normal, and it was normal to have 2-3% annual appreciation in values.  While the number of sales are down for the first half of the year and the first quarter got off to a sluggish start in our area, there could be a variety of reasons why that we may never understand.  In my opinion, our market is very healthy, with normal rates of appreciation, but we still remain in short supply of available homes for purchasers to buy.  If you have a house for sale in the area and are having trouble selling it, you may disagree with that statement but the numbers don’t lie! While this is an historically slower time of year (August, September, October) houses are selling every day.  Some houses sell after 2 days on the market, and others after 222 days on the market.  I see it happen every day.  Mortgage interest rates are at a new low, unemployment is at an all time low, and the Consumer Confidence Index is at an 18 year high.  I feel better already!

If you have specific questions about the value of your home, or if you know someone who could use my expertise in the real estate market, please don’t hesitate to call me or pass my name along.  I would LOVE to hear from you and as always, I LOVE being referred to new clients.  Without your referrals, I could not do what I love to do – Sell houses and make new friends!

Here are links to the market reports for each individual county and city.

Albemarle County

City of Charlottesville

Greene County

Fluvanna County

Nelson County

Louisa County