After some strange MLS problems, I was finally able to compile the year end statistics for the Charlottesville area. I compared them with the report that CAAR published, and noticed that despite all the requests to the contrary, there were still additional transactions recorded in the MLS after CAAR published their report. In light of this, I may wait a full 15 days to report stats in the future.
As always, the stats are compiled from the CAAR MLS and cover the Charlottesville Metropolitan Statistical Area (Albemarle, Charlottesville, Fluvanna, Greene, Nelson).
2005 Year-End Sales Data
2006 Year-End Sales Data
Breakdown
Overall, 2006 was not a bad year for real estate. It wasn’t 2005, but since 2005 was a record year, there is really no room for complaint. Charlottesville outpaced all the other areas, posting a 36% increase in sales. Since the majority, if not all, of this increase was the result of condo sales, it will be interesting to see how the city fares in the first few months of 2007. Every other area saw a decrease in sales– Albemarle -16%, Fluvanna -23%, Greene -18%, and Nelson -36%. Overall, the Charlottesville area experienced a 10% decrease in the number of sales.
The good news is that the median home price is continuing to rise for the area. Interestingly, the positive effect that condo sales had in Charlottesville may have negatively affected the median price, since it dropped 4% in the city for 2006. Every other area saw an increase– Albemarle +11%, Fluvanna +5%, Greene +13%, and Nelson +5%. Overall, the Charlottesville area experienced a 6% increase in the median home price for 2006.
Inventory History
Breakdown
While the months of inventory is relatively high as of the end of 2006 (10.37 months of inventory), the good thing is that the overall number of listings on the market has begun to trend downward. This could mean that while their will still be a healthy selection of homes on the market, it won’t feel so much like there is a glut of homes out there that simply won’t sell. It could also mean that people who were previously “testing” the market to see if they could get the price they wanted, have now come to grips with the reality of the market and are either taking their homes off the market or have actually adjusted and sold their homes.
One statistic that I found interesting was that the percentage of list price has gone down steadily over the last few months of 2006. This again leads me to believe that previously unreasonable sellers have been forced to adjust to this market. The only way to see if this remains true in 2007 will be to watch and see if that number begins to inch upward or at least remain the same in the beginning of 2007.
Final Analysis
All things considered, 2006 was a good year for real estate. Much like the hometown UVA football team, 2006 was a transition year for real estate. Granted, most people in real estate fared better in 2006 than the Cavaliers, but hopefully 2007 will meet everyone’s expectations for yet another solid performance by the Charlottesville area real estate market. As for the Cavaliers, I’m not so sure. . .
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