When looking at the Charlottesville Area Association of Realtors recently released 2nd quarter market report, it truly is a mixed bag of statistical analysis. I can’t remember a recent time that the report could support a positive or negative trend depending on how one looks at the numbers. This was substantiated in a recent conversation on The I Love Cville network where the participants varied in their assessment of the Charlottesville area real estate market. Here is the link. https://ilovecville.com/keith-smith-michael-guthrie-and-quinton-beckham-joined-jerry-miller-on-real-talk-an-insiders-guide-to-real-estate-in-central-virginia/
Although home prices are going up, there were less closings in the 2nd quarter vs the same time last year. The numbers of houses that went under contract decreased as well. Another negative data point is it is taking longer for properties to sell (up to 54 days). This, in my mind, is a good thing because if it continues, we will move into a more balanced situation ( up to 90 days and a 6 now 4.3 month inventory) meaning buyers will have more time to make the right decision versus having to make knee jerk decisions based on a fear someone else will buy the home.
It would be easy to take the stance that we can expect to see a less than stellar 2nd half of the year. I don’t think this will be the case. Why? Here are some thoughts.
- Interest rates will remain low due to the National economy being good but there remains some uncertainty of what the future holds. This is causing the Federal reserve to hold their interest rates steady. https://www.thebalance.com/current-federal-reserve-interest-rates-3305694
- Once again, there are again Mortgage programs that buyers with little money for down payment and closing costs can use. More info can be found at Https://www.vhda.com or by listening to this Real Estate Matters podcast. https://wina.com/podcasts/positive-benefits-of-vhda- financing/ Learn more about the Mortgage Tax credits by clicking on the following youtube link. https://www.youtube.com/embed/0_jZgv8VM3k?rel=0&showinfo=0
- New construction is helping keep the buyer market strong. Even though there were less closings in the 2nd quarter compared to the same time period a year ago, a higher percentage of those closings were new homes. I see that trend continuing throughout the remainder of the year. the good news is many builders have “ready to move in” product available right now. This is positive for three reasons. One, you don’t have to wait for the home to be built. Two, a buyer can take advantage of the surprising low interest rates. Three, in some cases, the builder may be willing to offer some incentives to get you to buy a home now vs waiting for them to build one for you.
In closing, I encourage you to really study the market where you want to buy or if you are thinking of selling. Understanding the overall market is helpful, but there remain areas that are very active and others that have stagnated a bit. Please take the time to engage a real estate professional who can answer all your questions and make sure you have all the information you need to make and educated decision before moving forward If you have any questions, please feel free to contact me.
Michael Guthrie | Broker | Roy Wheeler Realty Company
firstname.lastname@example.org or call me at 434-951-5155 ext 158.