More than three years after the 2007 housing crisis, Charlottesville housing market sales are still continuing to decrease. The market closed out 2010 with 2,707 sales, 1.5 percent below levels at the end of 2009, according to a 2010 Year-End Charlottesville Area Association of Realtors Market Report.
The report shows a 1.2 percent increase of median home prices. Although Albemarle, Fluvanna, Greene, and Nelson Counties had increases in sales for the year, areas such as Charlottesville, Louisa and Orange were down.\nCAAR President Greg Slater spoke of two possibilities that may account for the change.\n"My first theory is based on the fact that some of the numbers [from] 2009 and 2010 were super inflated by unique opportunities in the market," he said. "One was condominiums. There was an exceptional opportunity when a ton of people were buying condos ... and the number of sales increased. Then there was a project called Cherry Hill where there are about 100 townhomes in the city of Charlottesville. Those townhomes sold in about two years, and those are two years where the sales haven't been recreated [because there's no new inventory in that area]."\nHis second hypothesis concerns home prices.\n"I think in general, buyers are not agreeing on the premiums put on some of the Charlottesville locations," Slater said. "In Albemarle County, where the prices have been adjusted, the sales have been coming back."\nSome buyers are able to find the value they want just outside of what Slater calls the "urban range," where lower taxes makes living more affordable.\nKatie Davis, marketing manager of Management Services Corporation, the largest property management firm in central Virginia, agreed with Slater's logic.\n"The outlying counties tend to be less expensive than living in the city, and if you're looking for a home and can't afford to commute, people are choosing that option," she said.\nSlater added that when gas prices began to approach $3, people started looking more at their commutes.\nAdditionally, more individuals are seriously considering the option of renting rather than buying, especially if they need a home for a shorter amount of time and if they predict that prices will depreciate.\nSlater also pointed out that many homes in the area are older and have floor plans that are less popular in today's markets. He said many buyers are looking for good-size floor plans that are energy-efficient. One example of this trend is the neighborhood of Belvedere, which has newer housing and walkable paths to ensure cheaper commutes, and, Slater said, is experiencing a good deal of success.\n-Shirley Park contributed to this article
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