After a wild ride in 2010, the first quarter of 2011 was a relatively uneventful time. But we’re not complaining. The market is showing signs of improvement. Overall, sales were up in Q1 2011 as compared to Q1 2010. In fact, this was the best first quarter in terms of sales since 2008.
Single family homes continue to be the leading housing type throughout Charlottesville and Central Virginia. While attached homes and condominiums gained popularity during the boom years (mainly because single family homes became unaffordable to many), there is a definite preference for buyers towards single family homes. Single family home sales throughout our MSA were up over 15% from Q1 2010…and that’s after a 28.5% increase from 2009 to 2010. While median prices were down about 5%, Months of Inventory for single family homes has improved drastically to 11.46 months.
Condo and attached sales throughout the MSA stayed steady – we saw a 1% improvement in year-over-year sales. But Months of Inventory improved another 12% and Inventory levels are now hovering around 14.5.
No one market segment saw any dramatic increases in sales. Albemarle County remained steady, while sales in Louisa and Nelson continued to improve from dismal 2009 numbers. Surprisingly, Charlottesville City continues to lag – sales aren’t happening at the rate we would expect and it continues to be an under performing market segment.
Overall, median prices have come down from Q1 2010. This is expected…and needed for continued recovery. The biggest issue we are facing continues to be high Months of Inventory levels. Most segments still maintain 10+ months of inventory – this is just too high and tells us that prices still have downward momentum in most market segments. But with overall sales up, there are definitely some positive trends in the market.
If you are considering selling your home, you must be priced correctly, staged correctly, and marketed correctly. Otherwise, you’ll have a difficult time generating offers. In 2010, Nest Realty listings sold in 30 days less time and for 3% more than the average listing in the Charlottesville MSA. There has never been a better time to hire an experienced, committed, and full-time professional to help you sell your home.
If you are purchasing, continue to do your due diligence. Don’t assume the list price is the correct value and make sure you are purchasing at the right value.
Feel free to contact a Nest Associate if you’d like to discuss the market more…we’re here to help.