Home Prices Fell in Much of Charlottesville in February

March 25, 2019

Market Minute Logo 2019 smallThe median price of homes fell in many parts of the Charlottesville region in February, according to the Long & Foster Market Minute report. Buckingham County saw the sharpest decline with a 37 percent drop, followed by Fluvanna County which saw a 25 percent decrease. Number of homes sold also dropped in most of the region, except for Greene County which had an uptick of 45 percent. Inventory fell throughout the region, with decreases ranging from 3 percent to 44 percent.  

Long & Foster Real Estate’s Market Minute report for the Charlottesville region includes the City of Charlottesville and AlbemarleBuckinghamNelsonFluvanna and Greene counties.

Charlottesville Market Minute Chart February 2019

 

“February’s numbers are not surprising,” says Larry “Boomer” Foster, president of Long & Foster Real Estate.  “The market is actually pretty strong right now and there’s plenty of capital.” 

The decrease in units sold is due to a lack of supply of good saleable inventory at a price point where there is demand. Foster said this illustrates how hyperlocal the market is, as inventory challenges have caught up and magnified how low the numbers are.  

Foster addressed concerns that the market is moving toward a housing bubble, pointing out that the situation in 2005 was drastically different from the market currently. “The home affordability index is around 150, meaning that the median household income has 50 percent more money than is needed to afford the median home price, he said.  

“When you look at the things that had happened back in 2005 to create the housing bubble, there were a few factors,” Foster said. “One was the regulatory environment around mortgages, the other was double-digit appreciation with no way to keep up with it and the home affordability index.” In today’s market, Foster feels comfortable concluding that we are not in a housing bubble. 

In terms of getting a home, Foster said many people are not always aware of the variety of options available to homebuyers. “The biggest deterrent is most people don’t think they have enough money to put down, believing they need to put 20 percent down on the price of a home, he said. However, there are many financing options that don’t necessarily conform to that standard principle.  

Foster says you can get homes that are in need of updates for a steal at the moment since “the vast majority of buyers want move-in ready.” He advises for consumers to come in with a competitive offer backed by a strong reputable lender. 

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.