Does the Nationwide Housing Market tell the same story for Charlottesville?

Is now the best time to buy? Are prices going to keep falling in Charlottesville? How does the Charlottesville Real Estate Market compare to the rest of the nation? Well, let’s see.

We all know by now that home prices are falling nationally. The NY Times reported today that the troubled housing sector reached a new low this summer.

Prices of single-family homes in the third quarter fell 4.5 percent nationwide compared to a year ago, according to the Standard & Poor’s/Case-Shiller National Home Price Index. It was the largest drop since the index began in 1988. But is that what is truly happening in our local market??? Let's take a look and see.

We will take a look at data from 01/01/2006 through 11/27/2006 and compare it to the data from 01/01/2007 through 11/27/2007. We will use three different areas: the City of Charlottesville, Albemarle County, and Fluvanna County.

City of Charlottesville

In 2006 there were 723 homes sold in the city. They sold for an average price of $274,869 with an average Days on Market (DOM) of 66 days.

In 2007, there have been 566 homes sold for an average price of $308,355 with an average DOM of 73 days.

Summary: There have been 157 less homes sold in the city in 2007 (down 27%), but the average sales prices has gone up 12% and the average DOM has gone up only 7 days.

Albemarle County

In 2006 there were 1573 homes sold in the city. They sold for an average price of $420,758 with an average DOM of 56 days.

In 2007, there have been 1272 homes sold for an average price of $403,880 with an average DOM of 92 days.

Summary: There have been 301 less homes sold in the city in 2007 (down 23%), and the average sales prices has gone down 4.1% and the average DOM has gone up 36 days.

Fluvanna County

In 2006 there were 484 homes sold in the city. They sold for an average price of $274,365 with an average DOM of 75 days.

In 2007, there have been 387 homes sold for an average price of $279,464 with an average DOM of 88 days.

Summary: There have been 97 less homes sold in Fluvanna in 2007 (down 25%), and the average sales prices has gone up 1.85% and the average DOM has gone up 13 days.

OVERALL SUMMARY AND ANALYSIS

In 2006 the average home sale price was $323,324 with an average DOM of 65.66 days. In 2007 the average home sale price was $330,566 with an average DOM of 84.33 days. This shows an average INCREASE in price by 2.2%!
So, why is our inventory not turning over rapidly?

Well, there are a couple of reasons:

1. A steady rise in foreclosures along with the struggling mortgage market has weighed down housing demand and boosted business inventories. Tightened lending standards have also made it more difficult for Americans to procure the loans needed to purchase homes.

2. The decline in the housing sector (nationally) and the upheaval in the credit markets have also dragged down consumer sentiment. An index of consumer confidence reached 87.3 in November, its lowest level since October 2005, the Conference Board said today.

3. Consumers have faced pressures from rising oil prices and the difficulties in the mortgage and lending markets, leading businesses to fear a steep drop-off in spending over the usually lucrative holiday season

The BOTTOM LINE

If you are looking to buy a house, and can afford to do so, it’s best you do it now. Charlottesville's prices are still rising while the nation is struggling; just imagine what is going to happen when the national home prices go up...will they skyrocket in Charlottesville?? They did in 2005. It's only a matter of time before it happens again.

http://www.robsellscharlottesville.com/
http://www.theaverygroup.com/