CAAR released the 3rd quarter Market Report earlier this week. I posted my own analysis a bit earlier this month. Bear in mind that the MLS does not contain 100% of the properties on the market, but certainly enough to gain significant insight into the market.
A couple of interesting paragraphs that summarize our market follow –
Inventory:
As of mid-October, 2005, our database has 1,681 homes actively listed for sale. That is an increase of 313 more homes on the market than the previous quarter and nearly 500 more than the beginning of the year. We can expect around 300 homes to be purchased in October. That means that there are roughly 5.6 homes available for every buyer in the entire market area. That is the highest number we have seen in several years. While this higher inventory will cause a minor slow down the pace of price increases, we are still 20-30% down in inventory compared to the mid-1990’s. It will take a few more quarters of major increases before we will see a significant effect on the market. (bolding mine)
Transactions:
Third Quarter 2005
Area              Total Sales   Compared to 2004   % Increase/Decrease
Albemarle          542         -12               -2.2%
Charlottesville       156         +2               +1.3%
Fluvanna           183         -8                -4.2%
Greene            85          -6                -6.6%
Louisa             54          +3                +5.9%
Nelson            106         -19               -15.2%
The market is shifting to a healthier market. A return to a more sustainable market is a good thing.
Update 30 October 2005: The Daily Progress has a front-page article about the affordability crisis our region (and nation) face. There is a good discussion at cvillenews about affordability as well. The front page of the Business section has a article focusing on the slowdown our market is seeing. If they post a link to the article, I will note it (in part because I am quoted a couple of times).