CAAR: Charlottesville real estate market continues to cool as prices continue to increase
The number of sales in the Charlottesville housing market continues to drop as the median sales price continues to climb. That’s according to the latest report from the Charlottesville Area Association of Realtors. (view the report)
“There were 1,380 homes sold in the CAAR area in the second quarter,” reads one of the bullet points in the CAAR Home Sales Report for the second quarter. “This is an eleven percent drop from the second quarter a year ago, which is 165 fewer sales.”
CAAR’s jurisdictional area is the same as the Thomas Jefferson Planning District with the city of Charlottesville as well as the counties of Albemarle, Fluvanna, Greene, Louisa, and Nelson.
The median sales price increased to $417,850, an eleven percent increase over the second quarter of 2021. Additionally, supply has increased with 741 active listings in the area, a 28 percent increase over the same period in 2021.
To put the increase in perspective, consider that the median sales price for the second quarter of 2018 was $301,000.
The report also covers recent economic trends such as steady job growth and low unemployment.
“Several job sectors have fully recovered and have actually expanded since the start of the pandemic, including the Professional and Technical Services sector, and the Federal Government sector. The homeownership rate within these two job sectors tends to be relatively high, so growth in these sectors provides fuel for the housing market in Virginia.”
However, the leisure and hospitality sector continues to show signs of recovery.
Mortgage rates are higher than last year, but have shown a slight decline from the end of June when the average rate on a 30-year fixed was 5.7 percent. However, the report acknowledges the cooling effect of rates that have increased two percentage points so far this year.
Sales volumes were down in all localities except Greene County where there was a 33 percent increase in sales. There were 122 homes sold in that jurisdiction between April and June of this year compared to 92 in the same period the year before.
The median sales price increased in all of the jurisdictions, but Nelson County saw the biggest jump in values from $285,000 in second quarter of 2021 to $425,000 in the second quarter of 2022.
Visit caar.com to download the report. What do you think? If you’re a property owner, how does this change your views on what you may do with your own place? What about if you want to own? Say something in the comments.
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