Charlottesville Real Estate - Are We Still In A Seller's Market?
People always want to know what is happening in our Charlottesville real estate market. However in real estate one size doesn't always fit all. We have different markets in Charlottesville and Albemarle County depending on neighborhood and price range. Overall we are still in a seller's market but if we dig down further into various price ranges you will see that we are getting close to a balanced market in several popular price points. These figures are based on the sales of single family detached homes in Charlottesville and Albemarle County over the past 12 months.
When we are determining whether a market is a buyer's or seller's market we look at the amount of inventory waiting to be sold and divide it by the number of homes sold over the previous 12 months to get the absorption rate. 1-4 months of inventory constitutes a seller's market, because supply will be less than the demand, driving prices up. 5-6 months of inventory is a ballanced market, with prices staying at a status quo. 7+ months of inventory is a seller's market with more homes for sale than there are buyers, and as a consequence prices drop. As you can see from the graph of sales of single family homes in Albemarle County and the city of Charlottesville there is a big difference in what the market is like depending on the price range. We even have one price range that is in a balanced market. When you are pricing your home for sale, it can be helpful to know the absorption rates. You may decide that it makes sense to price your home in a group that has less competition and the expectation for a faster sale.
If you are considering selling your Charlottesville home, I would be happy to provide you with a market analysis of your particular home and absorption rates that could influence how to price it. Remember there are markets within the larger market.
Copyright 2012 by Pam Dent, all rights reserved, "Charlottesville Real Estate - Are We Still In A Seller's Market?"