The Charlottesville Area saw an upward trend in median sale prices across most of the region in July, according to the Long & Foster Real Estate Market Minute Report.
Last July, the median sale price for Charlottesville area homes was $344,512. This July, the median sale price was $394,500, a year-over-year increase of 15% or $49,988. The July 2021 sold price is 1% lower than in June 2021.
Versus July of 2020, the total number of homes available this July was lower by 368 units or 46%. The total number of active inventory homes this July was 436 compared to 804 in July 2020.
The average number of days on market was 24, a decrease of 63% compared to last July.
With reports of inventory gradually coming back and bidding wars becoming slightly less common, we asked Larry “Boomer” Foster, president of Long & Foster Real Estate, what buyers and sellers should expect.
“Real estate is hyper-local, and we are coming off of all-time lows in inventory that have been decreasing for four to five years,” said Foster. “Only around the D.C. area have we seen favorable inventory changes, with the most significant influx of homes coming on the market in Northern Virginia.” He added that although median sale prices have increased by an average of 20% over the last year in our market, 30-year fixed rates are still under 3%. Even with this appreciation, consumers can buy homes with these low interest rates, since they buy payment, rather than price.
For sellers, there will have to be a change of mindset. “If a house showed well and was in decent shape, we saw up to 10 offers and a waiving of contingencies. This pushed list prices up – sometimes dramatically – which is very abnormal,” Foster said. “As we get back into a normalized market, we will again see a home get a few offers, but nothing like we just saw.”
Foster mentioned that appraisal, financing, and home inspection contingencies are starting to come back, which is healthy. These actions provide more protection for buyers but does not disadvantage the seller. “As far as staging and house prep, putting elbow grease into your home is still necessary,” Foster said. “Buyers are getting more finicky; they used to have a vision, but now everyone wants move-in ready. They don’t have the time nor capital to invest in renovations and want to move in and start living.”