Today I received an email from one of my clients requesting my thoughts on the Charlottesville, Virginia real estate market.  It has occured to me that some of the readers of my blog may be interested in reading this as well. 

The following is my letter to a clent regarding the state of Central Virginia real estate:

Dear xxxx

I will attempt to answer your questions about the market.  As you have noticed the Charlottesville real estate market is very different from the market in many parts of Maryland.  Yes our prices are down and there is a lot of inventory on the market, but prices have not dropped to the extent that they have in some parts of the country, and they probably won't.  Most of the areas of the country with the lowest prices have a lot of foreclosures on the market which drag down the median price and force people to lower their asking price below market value if they want to be competitive.  While we are seeing some foreclosures, we do not have the huge numbers that other places in the country have.

Sellers are often offering to pay closing costs for purchasers but what is seen is usually $5,000-$6,000.  As far as price reductions we are seeing lower prices and there are some really good deals to be found with some homes on the market listing for below assessed value.  Yes many homes are still priced too high for today's market.  Often that is because, especially if it is a fairly new home, the seller is upside down on their mortgage and owes more than the home is worth in today's market.  Sellers who have owned the home long enough to build up some equity, may be in a better position to be negotiable.  In addition with the added days on the market some sellers have moved into their new home and are carrying two mortgages.  Those sellers are often ready to deal.  Within the market what you need to do is look at individual properties rather that the entire market.  If you can get the home that you want at a good price and you are planning to stay in it for 5-7 years then it is a good time to buy.

One of the other things to factor into our local market is the fact that NGIC is relocating 1000 employees here in a year.  Some of these people are already starting to look at homes.  How much impact this will have on our market will depend on how many are going to buy and how many will be renting initially.

 If you do not need to sell a home first, it is a good time to buy, interest rates remain low at this time but are very volatile fluctuating up and down by almost a point this week, and with the large inventory of homes for sale there is a lot to choose from.  Have we hit the bottom of the market yet?  That is hard to time.  Unfortunately the only way we will know when it has bottomed out is when it starts back up again, and then it is too late.  Some homes will have hit the bottom and they have already sold, some homes will probably be reduced even more or the seller will take an offer, some sellers will not drop their price any farther and those homes may be eventually withdrawn from the market and come back on when prices start back up.

 It all comes down to individual buyers and sellers and what works best for you.  If you find the perfect home for you and the seller will take a price that you are comfortable paying, then it is a great time for you to buy.

I hope that this has answered some of your questions.  If you have further questions or would like anything explained in more detail I would be happy to help.  I will check in with you periodically via email to see what you are thinking.  In the meantime, if you need any assistance, don't hesitate to email or write.

Have a great afternoon!

Pam 

It is good to remember that conditions can be very different in  real estate markets throughout the country.  Do not rely on the nation media to tell you what is going on in your part of the country.  Ask a local REALTOR to explain the status of your local real estate market.

Contact Pam Dent, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at 434 960-0161, pam@JumpintoGreenerPastures.com, to list your property for sale or to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Troy, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville.

To view all of the Charlottesville, Virginia and Central Virginia Homes for Sale click here and click on the mls search button.

Visit my website Jump into Greener Pastures or read my blogs Charlottesville Real Estate Talk and Charlottesville Horse Farms and Country Homes for information on Charlottesville area homes and the Central Virginia real estate market