The City of Charlottesville real estate market bounced back with vengeance in 2012. After shaky years in 2009 and 2010, 2011 brought a combination of up and down signals in the marketplace. However, almost every major market trend line was positive in 2012.
To start with, total sales in the City of Charlottesville increased from 402 sales in 2011 to 501 in 2012. That represents a 24.63% increase. The 501 sales in 2012 was the highest since 562 in 2008.
After 3 straight years of declining median prices, Charlottesville median prices edged up ever-so-slightly (+0.87%) to $232,000 in 2012. While this increase was minimal, it’s a nice bounce back for City prices after a 6.12% drop in median prices between 2010 and 2011.
While sales and prices were on the rise, inventory and months of inventory in Charlottesville were dropping…and that’s a good thing. Annualized months of inventory peaked in 2010 at 12.03 months. 2012 annualized months of inventory dropped all the way down to 5.72 months, less than half of 2010’s levels and a 39.75% reduction from 2011. In addition, December 2012 year end inventory levels were only 184 homes, which represents the lowest monthly levels since May 2005 (183 homes).
The sales by price point comparison for City of Charlottesville homes in 2012 mirrors overall market trends: a higher percentage of lower priced homes sold in 2012. As an example, see the percentage breakdown of the home sales between $0 – $199,999:
- 2010: 30%
- 2011: 38%
- 2012: 39%
Clearly, Charlottesville home prices came down over the last several years. As a result, more homes sold in the sub-$200,000 range. One of the reasons for this can be tied to the large number of sales in Walker Square in 2012. There were 52 total sales at Walker Square in 2012, as compared to just 13 in 2010.
In 2013, there will be a resurgence of new construction in the City of Charlottesville. With local real estate market conditions improving, developers and builders are getting proactive again. Notably, Southern Development will start construction on the next phase of Burnet Commons and Piedmont Realty and Construction will be building in Huntley. In addition, several other infill neighborhoods are starting and plans are starting to percolate for some other new Charlottesville neighborhoods.
The City of Charlottesville is the core of the Charlottesville MSA real estate market. An overall market recovery couldn’t have occurred until the core of the region’s real estate market made a recovery. Based on the statistics and the ongoing activity that we are seeing in the Charlottesville marketplace through the first several weeks of 2013, it’s clear that the City of Charlottesville real estate market has bounced back…and it may be taking the rest of the market along for the ride.