Median home sale prices increased in many parts of the Charlottesville area in June, according to the Long & Foster Market Minute report. Buckingham County saw the most drastic increase with a 66% rise, followed by Green County which had a 20% hike. The number of homes sold varied across the region with Nelson County exhibiting a 35% increase and Buckingham County seeing a 33% decrease. Inventory continued to fall last month, with decreases ranging from 2% in Greene County to 15% in Nelson County.
“When going into this year we had certain expectations about the market and there were market factors that were headwinds for us,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. Foster said that the past six months have met these expectations, aside from a later spring market than anticipated.
This month, Foster pointed out the decrease in units sold throughout the Charlottesville region. “There are continuing inventory contractions off of already depleted numbers, which also accounts for lower sales in some places.”
Interest rates are staying low and are expected to stay low for the rest of the year. Inventory challenges remain and are not expected to ease up anytime soon. The unemployment rate is also low, and wages are rising, meaning people have more money in their pocket.
Addressing the aging-in-place trend, Foster said there are a few reasons he doesn’t think people are moving. “Many are afraid they won’t be able to find a place they like once they sell their current home,” he said.
For the most part though, when people get older, they want something that’s more manageable – both physically and financially, he said. Communities for those 55+ are an attractive option because they provide a lot of activities and benefits within a community of similar people. Having a knowledgeable real estate agent will help make the process easier by providing in-depth information that buyers can use to make a fully-informed opinion.
Reflecting on the past six months, Foster said how Long & Foster performed as expected in terms of unit sales. When it comes to volume, “we’re a little bit ahead of where we were this time last year and at the end of the day we performed really well as a company,” he said. Foster anticipates the rest of the year will be like 2018 with the market slowing down from now until Labor Day before picking up again until Thanksgiving.