Charlottesville real estate market kicks into high gear.
The first quarter of 2015 has come and gone in a flash. Icy roads and chilling winds are giving way to sunshine and warmer temperatures, which means the spring Charlottesville real estate market is kicking into high gear. As we look ahead to what lies ahead this spring, we can learn a lot from what happened in the first quarter. While sales activity isn’t at it’s pinnacle in Q1, the first quarter sets the table for how sales activity will unfold in the second and third quarters.
Here are some key takeaways from the overall Charlottesville MSA* real estate market.
- Total sales were down slightly (-1%) this past quarter on a year-over-year basis, but the five-year sales trend still remains positive.
- The most significant trend we witnessed this past quarter was the continued rise in median prices along with the significant decline in inventory. Inventory levels are down 12% across the MSA from the same time last year while median prices have climbed by 7% over the last year.
- Q1 2015 listing activity (i.e. new listings coming to market) was consistent with recent years, but more contracts and sellers removing their homes from the market were contributing factors in the inventory decline. If inventory levels remain below the historical average, we will likely see prices continue to rise.
- Contracts written increased significantly year-over-year this past quarter so we anticipate a corresponding rise in sales in the second quarter. Overall, the Charlottesville MSA had a 24% increase in contracts written in Q1 (922 vs. 746)
So what does all this mean for you? As a homebuyer, you may encounter more competition for a property, due to the lower inventory levels, and it may take several attempts to have a contract ratified. As a seller, it is more important than ever that your home is strategically priced from the moment it hits the market in order to generate as much traffic and interest as possible.
At Nest, we aim to provide our clients with data and insight to make confident and informed real estate decisions. We invite you to take a look at the full Q1 2015 Charlottesville Nest Report here to get an in-depth look at how our market performed this past quarter. Have questions about this report or want to know more about how it affects you? That’s what we are here for so don’t hesitate to reach out and connect with a Nest broker today.
*The Charlottesville MSA includes Charlottesville, Albemarle, Fluvanna, Greene, Louisa, and Nelson.