Musings from You and Me

Charlottesville Real Estate Economy

If I listen to the news media expound on real estate, I realize if I believed what they said I should be swan diving out a high window. To hear them tell it we are in dire straights. The market here in Charlottesville is not bad. We are actually on target for our second best year ever. So, why the doom and gloom?

I pulled the statistics in the MLS for the month of August 2006 and compared them to the record holding year of 2005.

Albemarle in 2005 had 202 homes sold, this year was 146 a 28% difference.

Charlottesville in 2005 had 65 homes sold, this year was 55 a 15% difference.

Fluvanna in 2005 had 65 homes sold, this year was 54 a 17% difference.

The prices of homes has gone down slightly. The slow decline in prices started in March and has continued til now. It has been extremely gradual, and not signficant in any way. Especially if you consider that the prices spiked up and up in a very short time, sellers could literally stick any price on the house and wait for offers. Inventory was low, and purchasers needed housing.

New construction has also had price reductions and other incentives given by the builders. To make it more attractive to consumers. Does this indicate that we are in a terrible situation? In my opionion NO. Some builders had completion dates that were a year out. It was exceedingly difficult to find any homes nearing completion last year that were not under contract. We have returned to a balanced market.

Prices have stabilized, we have transitioned to a more realistic market. There has to be a balance between the wages earned and the affordability of the area. Otherwise, you lose the key service people, that are vital to the area. Nurses, Doctors, Firemen, Police Officers, Teachers all need to live in the areas they service.

We are not in a recession, don't believe me? Go to any shopping strip and look at all the shoppers. I am amazed at the number of cars with engines running waiting in the lots. We have not reached a point where families must make significant sacrifices in pleasure expenditures to pay their bills.

Fall is just around the corner, and this is when I personally buy property. This year will be no exception, homes that are priced well, and in good showing condition will sell. Interest rates are low, it is a great time to be shopping for real estate.

Right now is perfect to look at property, since we have recently gotten rain after drought like conditions, it is easy to tell if there are any water issues inside the house, or on the lot.

Perhaps "Perky Katie Couric" will place a more accurate and positive spin on things, I hope so at least.

posted by FineVirginiaLiving.com @ 8:32 AM