After smacking bottom at the end of 2006, the Charlottesville-area real estate market has leveled off, despite a 17 percent drop in sales from this time last year. That’s according to the Mid-Year Market Report [PDF version of the report available here] from the Charlottesville Area Association of Realtors (CAAR), which says now that we’ve lived through two years of "insanity," the market is beginning a gradual upswing.
![]() Dave Phillips, CEO of the Charlottesville Area Association of Realtors, sees the current market, which shows a decline in home sales and longer days on the market compared to this time last year, as a return to rationality. |
Mid-year sales in Charlottesville, Albemarle and surrounding counties decreased to 1,882 from 2,267 homes sold at this time last year. That means we’re still in a buyer’s market, but according to CAAR, the real estate pendulum is ever so gently swinging back towards the center.
Yet realtor and real estate blogger Jim Duncan isn’t ready to buy into CAAR’s assessment. "We’re firmly entrenched in a buyer’s market," says Duncan. "We’re going to know in nine or 12 months where we are today. The market is changing so rapidly that sellers, buyers and realtors, we’re all adjusting."
Speaking of adjustments, Charlottesville saw a $43,000 jump (18 percent) in mid-year median sales prices to $280,000, its biggest in five years after a $3,500 drop last year. Impressive, sure—until you factor in the spike of lower-priced condo sales in 2006 that helped keep the median price low. Nowadays, condos are sort of a sore subject, what with a glut of them sitting all empty and un-yuppied. "That segment of the market’s getting hammered right now," says Duncan.
As Charlottesville jumped, median prices in Albemarle, which saw a small decline in townhome and condo sales, dropped $15,000 to $310,500. That gets you three bedrooms, two baths and 2,200 square feet of county bliss.
Outside the city core lay pools of relative real estate calm. Median prices increased incrementally in Fluvanna (4.7 percent), Greene (6.7 percent) and Louisa (1.3 percent). Along with Albemarle, Nelson County dropped 3.8 percent.
Outer counties are "becoming more distinct markets," says Duncan. "They’re differentiating themselves…becoming more markets unto themselves."
So what will a little under $300,000 get you in downtown Charlottesville? According to Duncan, three bedrooms and 1,600 square feet. Plus, thanks to a few acts by boys in baggy white t-shirts, extra police presence.
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