CAAR report: Sales up only slightly in region while median prices continue to increase

The cost to buy a house in Albemarle and Charlottesville continues to increase with a 28 percent increase in the city between the first three months of 2023 and this year’s first quarter. 

That’s according to the latest report from the Charlottesville Area Association of Realtors, which covers the city of Charlottesville as well as the counties of Albemarle, Fluvanna, Greene, Louisa, and Nelson. 

“The sharpest drop in sales in the region this quarter was in Albemarle County, and the largest increase was in Louisa County,” reads the housing market overview on page eight of the report. 

There were 694 homes sold in the first three months of 2024. That’s up six from the first quarter of 2023, or around one percent. Compare that to a recent high of 1,065 homes sold in the first quarter of 2021. 

The median sales price for all homes in the region jumped to $435,000, an eight percent increase over the same period in 2023. In the first quarter of 2020, the median sales price was $302,000. 

Each locality’s median sales price changed at different rates. In Charlottesville, the median sales price jumped 28 percent from $377,500 in the first quarter of 2023 to $482,000 for January through March. Albemarle’s median sales price jumped from $458,798 to $526,900 in a year, or fifteen percent. 

Only Greene County saw a decline in the median sales price in the period from $389,900 in the first quarter of 2023 to $365,000 in the first quarter of 2024. That’s a six percent decrease. Fluvanna remained flat at one percent growth while Nelson County saw growth in value from $325,000 to $385,000. 

The median sales price for new construction jumped 20 percent to $497,615. That figure is up from $381,546 in the first quarter of 2020. 

At the end of the first quarter, there were 672 active listings on the market. That figure is four percent below what it had been in the first three months of 2023. 

The level of construction activity is about the same as the previous year. 

“So far in 2024, January through March, there have been 306 permits issued for new residential construction, just three more than this time last year, reflecting a modest one percent increase,” reads page 5 of the report. 

Most of those are for single family homes with permitting for multi-family units down in the period. 

“There have only been 61 permits issued so far this year for multi-unit construction, less than half the level seen a year ago,” the report continues. 

The report notes that interest rates to borrow money to buy a house have been increasing with the average for a 30-year fixed mortgage at 7.1 percent in the third week of April. That’s slightly up from the beginning of the year. 

“Volatile rate conditions are likely to continue, which could deter some buyers from entering the typically busy spring market,” reads page 6 of the report. 

qualify. 

Before you go: The time to write and research of this article is covered by paid subscribers to Charlottesville Community Engagement. In fact, this particular installment is from the May 13, 2024 edition of the newsletter. To ensure this research can be sustained, please consider becoming a paid subscriber or contributing monthly through Patreon.