Half of the Charlottesville area displayed an increase in number of homes sold in August, according to the Long & Foster Real Estate Market Minute Report. Nelson County had the largest increase with a 50% rise, while Buckingham County had the highest decline at 43%. Median sale prices also took an upward hike with Fluvanna County showcasing a 13% rise, followed by the City of Charlottesville with an 11% increase. Home inventory also decreased, except in Greene County, which had a 3% gain.
“You can expect a relatively good marketplace between now and Thanksgiving,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. Although the spring market peaked later than usual in 2019—with strong sales continuing through mid-May—Foster does not expect the same lag to occur this fall.
He anticipates similar market conditions as experienced in 2018, except with significantly higher demand and better interest rates. When the holidays arrive, many people will take their homes off the market as family comes into town and sellers prefer not to have their homes open for showings. For those wanting to purchase a new home, there is substantial credit available, making it still a good time to buy.
Foster also spoke about the Federal Reserve’s potential lowering of the federal funds rate and what effect that could have on the market. While the federal funds rate can affect 30-year fixed rates, the two are not directly tied together. Foster said they’re “directionally correct, meaning they typically go down together, but not always.” The 30-year fixed rate associates more closely to Treasury bonds and since the yield on Treasury bonds are so low, that is pushing the 30-year fixed rate down.