CAAR report: Sales remained slow in 2023’s third quarter

The Charlottesville Area Association of Realtors has released its report on the real estate market for the third quarter of 2023 and a trend of lower volumes continues.  

“Sales activity remained slow in the CAAR region,” reads the executive summary. “There were 980 homes sold in the CAAR market during the third quarter, 226 fewer sales than a year ago, reflecting a 19 percent drop.”

That figure is down from 1,460 sales in the third quarter of 2020. 

Meanwhile the median sales price continues to climb with a nine percent year-to-year increase to $440,000 per home. There were fewer homes on the market with an 11 percent decrease from the third quarter of 2022. 

“Tight inventory conditions are driving up home prices as buyers compete for a limited number of homes on the market,” the report continues. “Statewide, the median sales price in the third quarter of 2023 was $395,000, which rose five percent from a year ago.”  

The median sales price for new construction continues to increase. The average price in the third quarter of 2019 was $403,350 and that’s increased to $510,494 in this latest period. 

The report notes that building permits are down across the region with 840 issued across the CAAR footprint, down from 1,247 from the previous third quarter. 

The report also notes that interest rates are at their highest level since 2000 with the average rate of 7.63 percent for a 30-year fixed rate mortgage as of the third week of October. 

Sales were down in all six localities in the CAAR footprint.

A presentation from CAAR’s third quarter report (Credit: Charlottesville Area Association of Realtors)

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