We've all seen changes in the housing market lately. If you purchased a house in 2004-05, your equity is growing slower than expected due to buyers' market conditions. In a sellers' market, equity tends to grow at a higher rate of return. In 2003-05, sales prices grew about 10%-16% in the Charlottesville and surrounding areas. It tapered off to about 6% in 2006 and 2% in 2007. This shows a pattern of a housing boom for 2 years, a correction period for 2 years, now it's a more "normal" market.
It's a great time to buy if you plan on staying in your house for at least 5 years. Supply and demand determines market and price. With too much supply, buyers become more choosey or shy away from buying, prices drop, and number of Days on Market (DOM) increases. If not enough supply, demand increases, houses may get multiple offers, and prices increase.
In 2006-07, we saw an increase in supply and a decrease in demand for houses, compared to 2004-05, resulting in a decrease in # of sales and longer DOM. Homes are now averaging 30 days longer DOM than in 2005.
There's so much more I could share, but it may be better to send you a "market snapshot" of your neighborhood to show you how your home compares. If you're interested, contact me. Also, if you or anyone you know may be thinking of buying, selling, or investing in real estate, please let me put my experience to work for you or your friend.
Contact me at hash@kw.com or (434) 531-5351 or visit my website at www.findhomesincharlottesville.com for more information.
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