CAAR 2019 3rd quarter market report analysis
People ask all the time where is the best place to invest in real estate? I always answer with a statement shared with me early in my career. “Buy something that is ahead or in the way of future development.” The recently released Charlottesville Area Association of Realtor (CAAR) market report shows this once again to be the case. https://www.caar.com/docs/default-source/market-report/caar-2019-q3-housing-market-report.pdf Home values have increased so much in Charlottesville and Albemarle urban core that more and more purchasers are making the decision to travel out a bit to get more house and a bigger lot for a lower price. After a significant improvement in the 2nd quarter, Greene had a small increase (2%) in the number of homes sales, while Fluvanna (26%) and Nelson (34%) showed robust sales activity. Another reason buyers may be looking farther out is the lack of inventory in areas closer to Charlottesville. The low inventory is putting upward pressure on prices within the local markets, a trend is pushing home buyers out into other regions across Central Virginia. That is why you are seeing more development out in the outlying areas which are providing the type of amenities for consumers. Buying in these areas now can contribute to appreciation in the future as demand increases for those areas
Home Sales prices continue to increase throughout the area. Overall, the median price of a home sold in the 3rd quarter of 2019 is now over $300,000($305,000)with Albemarle County homes leading the way at $380,000. If you remove the new construction median price of $468,000, the median price for existing homes is reduced quite a bit meaning once can still find a home to buy for less than $300,000. Interest rates remain low so those who are having a hard time finding a decent rental home https://www.nbc29.com/story/41210474/rent-prices-rising-in-crozet-area really should consider buying at this time. If you are someone who pays more than $1200 in rent and has a good credit score, you certainly can qualify for a loan amount that will allow you to purchase a home. Contrary to what many might tell you, you can buy a home even if you haven’t got a lot in savings for a downpayment. Obviously, sellers are happy prices continue to increase but there is a silver lining in this for buyers as well. As prices rise, investors have less of an appetite to purchase. Therefore, a fist time home buyer will have fewer investors to compete with when they find the right home.
If you are thinking about selling your home, the report says you might want to get it on sooner than later. Many folks will advise you to wait until ealry spring versus dealing with it over the holidays. Given that the number of homes on the market has decreased, considering selling now might not be a bad idea. For a more thorough analysis of what the report says, click on these two podcasts. https://wina.com/podcasts/caar-3rd-quarter-market-report-2/?fbclid=IwAR33usZ7xv0YKCCIJmRuag-wAjpn-qVLYS3Z7qy_sekADSBPqgi3XWjt1ow https://ilovecville.com/michaelguthrierealtalk/
For more information, contact :
Michael Guthrie, Broker