Market Reports (2)

Market Reports

2010 Charlottesville Real Estate Update

2010 in home sales and activity ended much like 2009. At mid-year, home sales were up 19.2% but byyear end sales settled near 2009 sales levels at 2,707 units—just 1.5% below end of year 2009. Spring 2010 marked the end of the $8,000 federal tax credit for first time buyers, resulting in a nationwide slowdown in sales. A positive growth marker in the Charlottesville market is the continued pace ofsales in the starter home category. In 2010, starter home sales accounted for 66.3% of total sales compared to 57.3% for 2009, an increase of 9%. Listing inventory for the area was down 5% for the year and we are still in a buyer’s market. The float down in the number of properties on the market allowed for inventory absorption, paired with fewer new listings in 2010. The Charlottesville market recovery is tempered by a continuing supply of bankowned properties which we expect to continue to see through the second quarter 2011.

There were 2,707 homes sold in the Charlottesville area in 2010, which was down 1.5% (-42 sales) from 2009. Albemarle (+.5%), Fluvanna (+10.7%), Greene (+8.4%), and Nelson (+34.3%) showed an increase in sales for the year. All other areas were down from last year: Charlottesville (-18.9%),Louisa (-7.3%), and Orange (-25.7%).

The results in our local market are in line with national figures. Home prices have remained steady andpockets of value are still attractive for buyers. The gradual float down of listing inventory and the stability in Days on Market all support the move towards a sustainable and saleable market. For now, we will continue to watch the inventory of homes for sale and the number of foreclosures coming into our local market.

Tags: Charlottesville Homes, Charlottesville market update, Charlottesville Real Estate

Tuesday, January 11th, 2011 Market Reports No Comments

Charlottesville Real Estate: 3rd Quarter Update

The CAAR 3rd Quarter Market Report was just released on the greater Charlottesville Real Estate Market.

Where Are We Now?

Overall, the pace of home purchases in the Charlottesville market area increased compared to last year at this time. In the first three quarters of 2010, area sales (2111) were up 3.6% from the same period in 2009 (2037). Realizing the tax credit of earlier this year had an impact on our market, we are not far enough removed from the influence of that event on our area to draw any conclusions. But as it stands now, we are still showing an increase in sales activity year over year.

As reported in the CAAR Mid-Year Market report, that data had indicated a continuation of price stabilization. Our third quarter year to date numbers bear this out, showing mixed results depending on the county. For the entire area, the median price was down slightly (-.4%) compared to last year at this time.

Home Sales for the First Nine Months

There were 2111 homes sold in the Charlottesville area in the first three quarters of 2010, which was up 3.6% (+74 sales) from 2009. Albemarle (+6.1%), Fluvanna (+18.8%), Greene (+9.5%), Louisa (+14.3%), and Nelson (+45.3%), all showed an increase in sales, while Charlottesville (-17.3%) and Orange (-8.5%) showed a decrease.

Median Area Prices

Year over year median area prices remain relatively unchanged. The median sales price at the end of the third quarter of 2010 is less than half a percent different from 2009. Taking an historical viewpoint, the median sales price is just below 2005, which was the middle of the price acceleration of 2002 to 2007.

The median prices listed below are the middle of the market of properties that sold. Simply put, this is an indication of what buyers were willing and/or able to pay and is not a true reflection of individual home prices. As shown below, median prices in five counties have increased, and the area price per square foot remained unchanged from last quarter.

Overall, the median home price (including attached homes) decreased by $900 (-0.4%) compared to the first three quarters of last year. Due to the diversity of our area and range of home values, median prices may not tell you much about the value of your home. Consult a REALTOR® about conditions in your segment of the market. There are four counties that showed increases in their median prices: Albemarle (+1.7%), Fluvanna (+1.8%), Louisa (+5.9%), and Orange (+2.5%). The other areas covered in this report showed a decline as follows: Charlottesville (-2.5%), Greene (-1.4%), Nelson (-10.7%), and the Valley (-1.0%).

Inventory of Homes for Sale

The inventory of homes for sale in the Charlottesville area has decreased slightly since the end of the 2nd quarter, but is up from last year at this point in time. As we have reported for the past year, excess inventory is causing many of the problems with our local housing market. Until we are able to reduce the number of homes for sale, we will continue to have soft home prices.

As of this writing, we have 3,506 homes on the market, compared to 3,425 at this time last year, an increase of 4.0%. The median price of homes currently for sale is $288,500, which is $6,000 less than last year. The average DOM (days on market) of these homes is 157 days, which is 2 days less than last year and 40 days more than homes that sold this year. The most telling statistic related to homes currently on the market is that the average price per square foot is $195, compared to $140 for homes that sold in the first nine months of the year.

Housing affordability continues to be the positive aspect of this market. There are 1060 homes for sale at $200,000 or less, with an average DOM of 148 and an average price per square foot of $196. This is 181 more homes in this price range than last year at this time. There are 264 homes currently on the market priced at a million dollars or more, as compared to 270 last year with an average DOM of 253, up from 244.

Days on Market (DOM)

In this market, the average days (DOM) a property stays on the market is less important than it would be in a more balanced market. There are many variables in the marketplace – excess inventory, foreclosures, short sales, and financing issues – that affect the length of time a property is on the market. This year to date report continues the trend of stability in days on the market that we saw at this point in time both in 2008 and 2009. We are still in a buyer’s market, which means the best way to shorten the days your property is on the market is to price it correctly.

Conclusions and Predictions

Due to the influence of the home buyer tax credits of earlier this year, it is difficult to draw conclusions at this time. We should be able to learn more about this market by looking back after the fourth quarter and comparing the two years in their entirety.

Conclusions and Predictions

Tags: Charlottesville Homes, Charlottesville market update, Charlottesville Real Estate

Friday, October 15th, 2010 Market Reports No Comments

Charlottesville Real Estate 2010 Mid-Year Report

T he pace of home purchases in the Charlottesville market area showed a significant increase compared to last year at this time, with the exception of the City of Charlottesville. In the first half of 2010, sales (1391) were up 19.2% from the same time in 2009. The tax credit requiring homes to be under contract by April 30th and a slowly declining local unemployment rate were two strong influences for the occurence, along with the knowledge that the first half of 2009 was the slowest six months of sales in our area in recent history. Albemarle County was up 33%, Fluvanna was up 29.7%, and Greene was up 20.5%. The median price of homes was up slightly in Albemarle County. There continues to be abundance of homes for sale. The current days on market crept up from last quarter. Average days on market for Albemarle is 112 and 107 for Charlottesville which compares to around 70 days on market during the brisk sellingin previous years.