Does the Nationwide Housing Market Tell the Same Story for Charlottesville?

Is now the best time to buy? Are prices going toIn 2006 there were 484 homes sold in the city. They
keep falling in Charlottesville? How does thesold for an average price of $274,365 with an
Charlottesville Real Estate Market compare to theaverage DOM of 75 days.
rest of the nation? Well, let's see.In 2007, there have been 387 homes sold for an
We all know by now that home prices are fallingaverage price of $279,464 with an average DOM of
nationally. The NY Times reported today that the88 days.
troubled housing sector reached a new low thisSummary: There have been 97 less homes sold in
summer.Fluvanna in 2007 (down 25%), and the average sales
Prices of single-family homes in the third quarter fellprices has gone up 1.85% and the average DOM has
4.5 percent nationwide compared to a year ago,gone up 13 days.
according to the Standard & Poor's/Case-ShillerOVERALL SUMMARY AND ANALYSIS
National Home Price Index. It was the largest dropIn 2006 the average home sale price was $323,324
since the index began in 1988. But is that what iswith an average DOM of 65.66 days. In 2007 the
truly happening in our local market??? Let's take aaverage home sale price was $330,566 with an
look and see.average DOM of 84.33 days. This shows an average
We will take a look at data from 01/01/2006 throughINCREASE in price by 2.2%!
11/27/2006 and compare it to the data from 01/01So, why is our inventory not turning over rapidly?
2007 through 11/27/2007. We will use three differentWell, there are a couple of reasons:
areas: the City of Charlottesville, Albemarle County,1. A steady rise in foreclosures along with the
and Fluvanna County.struggling mortgage market has weighed down
City of Charlottesvillehousing demand and boosted business inventories.
In 2006 there were 723 homes sold in the city. TheyTightened lending standards have also made it more
sold for an average price of $274,869 with andifficult for Americans to procure the loans needed
average Days on Market (DOM) of 66 days.to purchase homes.
In 2007, there have been 566 homes sold for an2. The decline in the housing sector (nationally) and
average price of $308,355 with an average DOM ofthe upheaval in the credit markets have also dragged
73 days.down consumer sentiment. An index of consumer
Summary: There have been 157 less homes sold inconfidence reached 87.3 in November, its lowest level
the city in 2007 (down 27%), but the average salessince October 2005, the Conference Board said
prices has gone up 12% and the average DOM hastoday.
gone up only 7 days.3. Consumers have faced pressures from rising oil
Albemarle Countyprices and the difficulties in the mortgage and lending
In 2006 there were 1573 homes sold in the city.markets, leading businesses to fear a steep drop-off
They sold for an average price of $420,758 with anin spending over the usually lucrative holiday season
average DOM of 56 days.The BOTTOM LINE
In 2007, there have been 1272 homes sold for anIf you are looking to buy a house, and can afford to
average price of $403,880 with an average DOM ofdo so, it's best you do it now. Charlottesville's prices
92 days.are still rising while the nation is struggling; just
Summary: There have been 301 less homes sold inimagine what is going to happen when the national
the city in 2007 (down 23%), and the average saleshome prices go up...will they skyrocket in
prices has gone down 4.1% and the average DOMCharlottesville?? They did in 2005. It's only a matter
has gone up 36 days.of time before it happens again.
Fluvanna County