Spring definitely arrived early in Charlottesville and the Central Virginia area not only with the wonderful weather we have had but also with what has been a great start to the 2017 real estate market. As predicted, the lack of bad weather and 1st time buyers deciding to purchase https://www.mykcm.com/2017/04/19/measuring-your-ability-to-achieve-the-american-dream/ allowed the 1st few months of the year to be the very best in several years.
Listed below are the highlights from the Charlottesville Area Association of Realtors 1st quarter market report.
- The Charlottesville Area 2017 First Quarter Highlights:
- Home sales climbed 3.5% (595) over Q1 2016 (575), led by an increase of 6.8% in attached home sales.
- Greater Charlottesville median sales price rose to $270,000 (8.0%) compared to this time last year ($250,000).
- The median days on the market in the 1st Quarter was 28, 32-days lower than in Q1 2016. • New listings improved 4.2% (1,712) compared to this time last year (1,643), while inventory of homes for sale marked a 15.8% decline.
- Pending sales was 14.1% (1,060) higher compared to Q1 2016 (929), driven by a high demand in detached homes (16.5%).
Click on this link to read what the Daily Progress gleaned from the report. http://www.dailyprogress.com/news/business/caar-rises-in-home-sales-prices-are-a-sign-of/article_7c458236-1f0a-11e7-8c16-2bebf265d9b4.html You can get an even better analysis of this report by listening to this podcast http://wina.com/podcasts/caar-1st-quarter-housing-report/ which features CAAR leaders Anthony McGhee and Arleen Yobs discussing the report on www.facebook.com/realestatematters radio show. Take note of the last bulletin point above, the pending sales showed a significant increase over last year. This will result in the 2nd quarter showing an even stronger market heading into the 2nd half of the year. The increase in median price shows that move up buyers are now impacting the market as well with the over $500000 home market gaining traction. There have even been multiple contracts on some higher priced homes which hasn’t happened in a long time. Another reason for the resale home over $500K price range heating up is many new home buyers are having to wait until 2018 before a builder can complete a home for them. Buyers don’t want to wait that long and are still trying to take advantage of the low interest rates which interestingly enough have dropped slightly since the Fed increased their rate.
Home sales are even more positive than the CAAR report indicated. The reason for this is the many private sales that are occurring via word of mouth or transactions occurring via Social Media. This is a hidden reason for the listing inventory being as low as it has been in some time (a 16% decrease). Many of these sales never show up in the Realtor system because an agent wasn’t used. Leaving the Realtors out might seem like a great idea but there are 2 things to consider.
- Are you leaving money on the table by not having the home listed on the open market? Homes are selling for above list price due to demand and multiple buyers interested in the same house.
- Outside of finding the buyer and negotiating an acceptable sales price, Do you fully understand all the things you will have to deal with which the Realtor usually handles? Even if you retain an attorney, they will not do many of the things that need to be done leaving it up to you to handle.
For more thoughts on why a private sale might not be the best along with other tips for buyers and sellers, listen to this podcast http://wina.com/podcasts/learning-lessons-for-todays-real-estate-market/
There is no reason to think that we won’t continue to have a positive real estate market throughout 2017 and into 2018. I will leave you with a few reasons why and a link to a discussion about the global economy and why it signals a robust housing market.
- Interest rates remain at close to a historic low
- First time buyers are again entering the market. Millenials have waited longer than baby boomers to enter the market but the time has arrived and there are over 66,000,000 of them. It has helped a great deal that is easier to qualify for a mortgage with the Dodd-Frank Act having less of an impact on mortgage underwriting.
- The business climate is improving which creates job security. That security is giving people the confidence to take the next step whether it is from renting to buying or moving up to that larger home. It also can mean the purchase of a 2nd home which certainly positively impact our market area.
LeadingRE economist and former host for CNBC and Squawk Box, Marci Rossell, believes the global economy needs to be watched when projecting what we can expect with housing moving forward. You can hear more from her by listening to this podcast http://wina.com/podcasts/how-the-global-economy-effects-real-estate/
For information about what is happening in your area or specific neighborhood, please contact any of our professional associates here at Roy Wheeler Realty or call any one of our 6 offices in the Central Virginia area.
Michael Guthrie – 434-951-5158