Available inventory fell sharply in the Charlottesville region in November, with the number of homes sold increasing by double digits area-wide.

Long & Foster Real Estate’s Market Minute report for the Charlottesville region includes the City of Charlottesville and Albemarle, Buckingham, Nelson, Fluvanna and Greene counties.

Compared to last year, the region overall saw 18 percent fewer homes available to buy in November, with the number of units sold increasing 18 percent. There were 3.9 months of supply, a decrease of 31 percent versus a year ago.

Median sale prices fell overall in the region, but were up 14 percent in Charlottesville and 7 percent in Albemarle County. The overall decrease was due to fewer luxury homes selling in November, said Larry “Boomer” Foster, president of Long & Foster Real Estate.

Across the Long & Foster footprint, homes considered more affordable in their markets are selling at a brisk pace, Foster said.

“In the luxury space, there’s plenty of inventory, but entry-level homes – that’s tougher,” he said. “There’s no way to build quick enough to meet the demand, and baby boomers are staying in their homes longer than they ever have.”

Foster recommended buyers work with a real estate agent to get prepared for any housing search. A buyer who has received preliminary approval for financing and enlisted the help of an agent who knows the market will have a greater chance at success getting an offer accepted, he said.

Strong demand and low inventory usually result in price appreciation, and that’s what happened in the City of Charlottesville in November. The number of homes sold rose 31 percent, and available homes fell 15 percent.

Foster predicted 2018 would bring more of the same, with strong employment, wage growth and low interest rates expected to remain forces shaping the housing market. Affordability could become more of a concern however, he said. Interest rates are expected to rise modestly, and home prices could continue to go up.

“Owning a home is a great investment and a great way to build wealth,” he said. “If you own a home, you’re in a pretty good place right now.”

Foster said he’s closely watching tax legislation making its way through the U.S. Congress, to see how homeowners will be affected. Measures to limit the amount of mortgage interest and local property taxes that homeowners may deduct could affect homeowners in the upper end of the market or in high-cost areas.

“It’s hard not to be concerned about that,” Foster said. “But I think people buy homes for reasons other than the tax breaks they might get. They buy homes for the security of having something that’s their own, to have an appreciating asset, to have a place to raise kids and grow their families in.”

The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.

Information included in this report is based on data supplied by Charlottesville Area Association of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of CAAR or Long & Foster Real Estate.