Charlottesville Real Estate Blog

The National Association of Realtors® (NAR) has insisted for years, and insisted adamantly since the "bubble" started to burst, that real estate, like politics, is local. The quarterly survey of home prices that NAR released on Thursday proves this point and also indicates that, while the housing market is grim in some parts of the country it is doing quite well in others.

The survey which covers the fourth quarter of 2007 showed that 73 of the 150 metropolitan areas in the survey continued to show rising median prices for existing single-family homes.

11 areas actually showed double-digit annual gains and another 12 had increases of 6 percent or more. 77 Areas had price declines and 16 of those lost values in the double digits.

Still, in spite of the fact that the market is holding up well in much of the country, median prices for the country as a whole and for each of the four regions were down from the fourth quarter of 2006. The median price for the country declined 5.8 percent from $219,000 to $206,200. The West, which also had the highest prices in the country, took the biggest hit. The median price in that region in the fourth quarter of 2006 was $355,000 but had declined 8.7 percent to $324,100 in the latest report. The Midwest, which has the lowest median price fared the best, losing only 3.2 percent to a fourth quarter price of $156,300.

The largest single-family price increase was in the Cumberland area of Maryland and West Virginia. Prices there rose 19.0 percent from a year ago to a median of $116,500. Other big winners were Yakima, Washington (18.0 percent to a median of $170,600) and Binghamton, New York where prices increased 14.8 percent to a median of $110,000.

Big losers were Lansing/East Lansing Michigan where median prices dropped 18.8 percent to $109,600; the Sacramento California MSA which lost 18.5 percent in value to $297,600; and Jackson Mississippi and Riverside/San Bernardino California each at -16.8 percent to median prices of $120,900 and $338,000 respectively.

Lawrence Yun, NAR chief economist, said disruptions in the mortgage market have played a role. "The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges. For buyers who need loans of more than $417,000, mortgage interest rates have been running more than a percentage point higher, and that has been having an obvious impact. Higher ratios of sales for more moderately priced homes are naturally dampening the national median price as well as the data for some of the more expensive markets."

NAR President Richard Gaylord said he is encouraged by the raising of Freddie Mac, Fannie Mae, and FHA conventional loan limits. "Higher limits for FHA loans, which go into effect March 14, will be a big help to first-time buyers in high-cost markets. Higher limits for conventional loans purchased by Freddie Mac and Fannie Mae will take a bit longer - when they become available, high-income, creditworthy borrowers in high-cost areas will have access to affordable and safer financing, and that will help unleash pent-up demand."

The NAR report also covered condominium and cooperative prices in 59 metropolitan areas. The national median price for existing condos was $221,100 in the fourth quarter, only $100 less than in the fourth quarter of 2006. Thirty-three areas showed year-over-year increases (four of these had double-digit gains) while 26 areas saw prices decline, four of those by double-digits.

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate(2) of 4.96 million units in the fourth quarter, down 8.5 percent from 5.42 million in the third quarter, and are 20.9 percent below a 6.26 million-unit pace in the fourth quarter of 2006.

NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series was launched at the beginning of 2006, with several years of historic data.

The Charlottesville Area Association of Realtors stated in their recent Third Quarter Market Report that, “Many an opportunity is lost because a man is out looking for four-leaf clovers. Buyers seem to be looking for an incredible deal when great opportunity is right in front of them.” Hence, “Buyers do not need a four-leaf clover to have luck in purchasing a home right now”; there is tremendous opportunity throughout Central Virginia. This is not a Market to be afraid of but rather a Market in which to jump! Whether someone is a First Time Home Buyer, has been away from the home buying process for a number of years or is even new to the area, the seminars being offered by The Avery Group will allay their fears about the current real estate market, getting a mortgage and give them an introduction to the home buying process in Central Virginia. The one-and-a-half hour class will offer an introduction to buying a home, working with a real estate agent, a mortgage professional, and how to get to Closing! CALL 434-975-9000 TO RESERVE YOUR SEAT TODAY!! All of the seminars will take place at Charlottesville Settlement Company located in Glenwood Station next to Fashion Square Mall in Charlottesville, VA. Rob Alley, REALTOR® and Cynthia Avery, REALTOR® have worked together this past year as members of The Avery Group which offers ten years of combined real estate experience in Central Virginia. Rob is also President of the Charlottesville Chapter of the Virginia Tech Alumni Association. Known for their abundant energy and service to others, Rob & Cynthia offer a dynamic combination of real estate and market knowledge, exemplary service, internet savvy, wisdom and good old fashion common sense. You can visit them on the web at www.TheAveryGroup.com. The Roy Wheeler Realty Company was founded with the philosophy that "service is our most important product." That philosophy is as important today as it was in 1927. Today, over 100 agents work from historic Ednam Hall as well as their three other offices in Wintergreen, Greene County and Sperryville; all carry on the tradition of Roy Wheeler and his commitment to excellence. Their reputation for hard work, diligence and unsurpassed service to their clients has stood the test of time throughout the Piedmont. The associates and staff of Roy Wheeler Realty Co. take pride in the services they provide to the community and in their ability to make a positive contribution to the region and the people they work with daily. You may register for the Home Buying Seminars by calling (434) 975-9000 or by emailing Info@TheAveryGroup.com. Please feel free to call for more information or if you have specific questions.

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