Now let’s take a look at some market statistics for single family detached homes in the City of Charlottesville. In real estate, we talk a lot about ‘Location. Location. Location.’ Typically, property values hold their values more in areas that are located closer to urban and employment centers. Charlottesville is definitely the cultural and economic center of Central Virginia. Therefore, we would expect home values and sales in the City to outperform other areas of Central Virginia.
There are definitely pockets of Charlottesville that are outperforming other parts of Central Virginia. Actually, I could probably make the argument that a few small pockets (Martha Jefferson Neighborhood, North Downtown, Lewis Mountain neighborhood) in the City may actually be appreciating (gasp…remember that word?). Those unique areas/streets are typically located within walking distance to the Downtown Mall in parts where the homes are in great condition and full of character.
However, overall, Charlottesville real estate has suffered just like other parts of the County (and the Country). Because of location, some Charlottesville neighborhoods (like Belmont, for example) rode the real estate wave to the peak…and have, therefore, had a long fall from the top. Investors definitely pumped up prices in certain pockets of Charlottesville.
Charlottesville home sale numbers haven’t quite recovered like some other parts of Central Virginia (like Ivy, for example, where home sales are showing signs of recovery). 2009 Charlottesville home sales were off about 15% from 2008…and 2008 numbers were off about 12% from 2007. The final quarter of 2009 did show some positive momentum in that sales were up over the same period in 2008.
Here is a quick overview of some other signs in the Charlottesville real estate market:
– Overall 2009 Inventory (8.79 months) is slightly higher than 2008 (8.03) and 2007 (7.86)
– Total sales volume was about $20 million lower in 2009 than 2008 (from $110m to about $90m)
– List-to-sale ratios were down again in 2009…though slightly. In 2009, Charlottesville homes sold for approximately 95.11% of their final list price. In 2008, it was 95.79% and 2007 was 97.39%
– Days on Market in 2008 (102 days) vs. 2009 (100 days) are essentially a wash
So, there still seems to be some downward movement in Charlottesville real estate. The positive signs are that things seem to be correcting. As prices drop a little more, I expect to see sales jump. We’re definitely seeing buyers in the marketplace…they’re just waiting for the right opportunity.