During the first quarter of 2006, the Charlottesville housing market recorded significant changes, according to a report issued by the Charlottesville Area Association of Realtors.
Last quarter, the number of housing units on the market increased while demand slackened, the association's CEO, David Phillips, said.
"Inventory has increased dramatically," Phillips said, adding that an increase in supply has been accompanied by a decrease in demand.
The report concluded that, "The local residential real estate market has been in transition for the past six months and it appears to be settling in to a very healthy and sustainable segment of the economy."
While Phillips acknowledged there is certainly room for improvement in housing availability, he said buyers and sellers are achieving an "equilibrium" and are "finally on the same playing field."
According to Phillips, condominium sales will continue to increase, specifically in Charlottesville. This is a trend that will directly affect University students seeking off-Grounds housing.
"A great deal of condominiums came on the market, with new projects or conversions of apartment complexes," Phillips said. "This could work against students on some level for those who want to rent and less apartments on the market because of that."
Montague, Miller and Company realtor Carol Clarke said this increase in condominiums gives students more choice and students will be the targeted customers as developers continue to turn existing apartment complexes into condominiums.
"There is a lot more choice for students in terms of housing, whether they want to rent or if their parents want to make an investment," Clarke said. "Condos are on the market that parents will buy for students and investors who will rent to students."
Off-Grounds Housing Director Vicki Hawes agreed that an increasing number of apartment buildings are converting to condominium complexes. She cited 1815 Jefferson Park Avenue as an example.
According to Hawes, condominiums offer first-time buyers an economical and low-maintenance housing option.
For "the one-bedroom condos at JPA, a condo is $140,000 versus in Charlottesville, a one- to two-bedroom home is going to be over $200,000," Hawes said. "Investing in a condo means that you don't have the upkeep of the grounds and major utilities, like plumbing."
Hawes said she anticipates students will recognize these advantages and be more likely to choose condominiums.
"For the long run in Charlottesville, in close proximity to the University, more students will have purchased condos over single family houses," she said.
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