The 2012 year-end market report has just been released from the Charlottesville Area Association of REALTORS, and it’s results are right in line with what I had been predicting and sharing with you throughout the year. Perhaps there is a light at the end of the tunnel for this depressed real estate market, after all!
In general, the findings were;
- Overall, the number of sales in Greater Charlottesville were up 15% over 2011, resulting in largest year-over-year increase in seven years.
- Median sales price for the region in Q4-2012 was up 8% over last quarter and Q4-2011 to $260,000.
- Average Days on Market was relatively unchanged from the 5-year average- we’re still around 150 DOM, while the MEDIAN days on market is dropping.
- We had our first annual increase in median sales price since 2007 (!! hopefully this is not a fluke but is a beginning of a trend!)
- Unfortunately, Louisa County is still behind the trend, only to be beat by the even-more-challenged Fluvanna.
2012 Year End CAAR Market Report– Read the full report here.
So what does all of this mean?
HOPEFULLY, for sellers, this means that we have weathered the worst of the storm- assuming we don’t get hit by a double dip. It also means that right now we are a bit low on appealing, well-priced inventory but that appealing, well-priced inventory should sell. If you have waited and waited to see some slight signs of life in the market, it might be worthwhile to consider making your move now.
That being said, if you are DOWNSIZING seller or moving into a lower price range or into renting, it may be ideal to try to wait another 3-5 years, when we may see some cumulative appreciation again. If you are a MOVE-UP seller, moving to a higher price point, this may be an IDEAL time to take serious action to get your home sold so that you can take advantage of the low interest rates, plus the reduced pricing on your bigger, more expensive home.
For buyers it means- consider getting off the fence. If you have been waiting and waiting for the bottom of the market, you may be at risk of missing it completely. If you are finding homes you’re attracted to and excited about, don’t let your interest linger. When inventory is down, the well-priced homes in good condition will sell, sometimes very quickly. With interest rates at an all-time historical low, and prices potentially approaching stabilization and increase, let’s consider discussing the next step.
Please reach out to our team if you’re considering making a real estate decision this year- we would love to help guide you in the right direction.