But, a couple of readers emailed me the article, so I feel obligated to comment (and I am grateful for that obligation – thank you for reading)The study (pdf) is less a story of how much more unrepresented sellers sell their homes for than those who choose to hire a Realtor, and more about the effects of a viable alternative to the MLS, which is currently the best way to market a home.We focus on the city of Madison, Wisconsin, where a single web site (fsbomadison.com) has become the dominant for-sale-by-owner platform.A few thoughts:1…. The National Association of Realtors (NAR) argues that Realtors provide valuable help with setting the listing price, preparing the house, checking potential buyers’ qualifications, showing the house, bargaining the terms of the deal, and handling the paperwork.5…. Maybe the best “by owner” site in Charlottesville is c-villebyowner, but their market share remains infinitesimal.In the Charlottesville area real estate market, some neighborhoods are more likely to be successful for those who choose to represent themselves in the sale of their homes – those that are fairly cookie-cutter and high-traffic neighborhoods may be better candidates than those that are not, but why would someone want to limit the number of people to whom they market their most valuable asset? What about the pictures?By the way, the study is outdated.The study found, however, that homes listed with agents sold more quickly — with a 25 percent probability of selling within 60 days versus a 16 percent probability for FSBO-advertised homes.The average days on market in the Charlottesville area, right now, is trending between 74 and 106 days.
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How many Town Centers do we need in CharlAlbemarle?
Just in CharlAlbemarle — Hollymead Town Center (29 North)- Old Trail Town Center (Crozet, West of Charlottesville)- Belvedere Town Center (North Central Charlottesville) – link not yet live- Albemarle Place (Central Charlottesville)- North Pointe (29 North)- The Downtown Mall (City Center)- Eventually there will be one in or around the Biscuit Run development to the South of the City.Update 05-02-2007: Here is my first attempt at Google MyMaps; it was too easy.What are the effects and impacts of the proliferation of town centers?… More shopping.From a real estate perspective, these may have very different and varied effects:- One will be that some buyers will want to be as close as possible to the town centers to take advantage of the “walkability” of what these town centers will offer.- On the flip side, the town centers will drive perhaps an equal number away from these town centers; these people want access to the shopping offered, but don’t want to see or deal with the town centers and the traffic, congestion, sounds, smells, etc. on a daily basis.- And even further, some will be driven further out in the rural areas so that they can get as far away as possible.What is the common denominator?… Any transplants to C’Ville who are willing to share their perspective?Update #2 05/02/2007 – Interesting and relevant article from the WSJ blog today.Right now, my husband and I are still renting, but we have started to think of making the big purchase…. I have no problem moving somewhere for a year or two and then trying something different; my husband dreads moving and wants to hold off until we find the perfect place – so we will stay put for a while.
1st Quarter Market Report for the Charlottesville area
In this quarter for the CharlAlbemarle Market:From 1 Janurary 2006 to 5 April 2006 in Charlottesville/Albemarle, there were 259 price changes and there were 451 price changes in 2007. There is no way to discern whether these were all price reductions, but a reasonable assumption is that the vast majority of the changes were downward.476 properties (single family, attached and condos) sold in 2006 and 342 sold in 2007.665 went under contract in 2006 and 635 went under contract in 2007.1555 were listed in 2006 and 1216 were listed in 2007.For the entire MSA**:2148 were listed in 2006 and 1850 were listed in 2007.943 went under contract in 2006 and 888 in 2007.715 were sold in 2006 and 532 were sold in 2007.* Source: Charlottesville Area Association of Realtors MLS, whose data is “good enough for now”** Charlottesville MSA = Charlottesville, Albemarle.
Subprime mortgages in Charlottesville
There has been a lot of furor the last several weeks about subprime mortgages and the impact that they might/will have on the housing market and the economy as a whole…. The table below can help us ascertain the potential risk (taken in the context of the entire report -pdf):From the report:This study provides the first comprehensive and systematic look at the geographic variations by region and metropolitan area for the soon to be released federal government data covering lending activity in 2005…. These loans are generally more expensive for borrowers with interest rates higher than prevailing prime rates, presumably to compensate lenders for the added risks associated with lending to borrowers with weaker credit histories…. Be prepared.Check out the third slide in this excellent post on tightening lending standards.Business Week’s Map of Misery shows the statewide averages of subprime woes.I have asked a couple of local lenders where I might find this sort of data, with not luck.
Market cap on Charlottesville prices?
Is population growth of people on the upper end of the socioeconoic strata expected to rise that much here?I merely ask because of the amount of new construction and the current prices well over the $350,000 range for most detached homes…. Buying smart will come into fashion again.From last November’s HooK:”In the last several years, people had gotten away from the ‘buying smart’ mentality and were just buying,” he says…. “If you don’t do anything to the house to hurt or improve it, you’ll probably make money when you sell.”This is a particularly relevant letter to the editor in this week’s WSJ, referencing Japan’s housing price decline:…… We contRelated reading:Has the market hit bottom?Who is buying urban condominiums?: a tale of four cities.Goldman Sachs Housing Conference (Hat tip: Paper Money)My previous writings on appreciationcaveat: I am not an economist, fortune teller or nor sooth sayer.
Charlottesville area listing inventory numbers
Without a way to determine whether these were changes upwards or down, this is honestly a bit of a shot in the dark; my very educated guess is that these price changes in 2007 were more down than up.Witness this new construction property in Crozet that came on the market last June – it started at one million three hundred forty nine thousand and was just reduced to $899,000!—NB: Contrast what follows with what was released in yesterday’s End of 2006 market report:One factor that affects the DOM statistic is inventory…. Including only our MSA (Albemarle, Charlottesville, Greene, Fluvanna and Nelson), there are as of 10 January 2006, 1672 properties actively on the market…. For example, there are 184 properties on the market in Madison and Orange Counties – at least 35-45 minutes north and north east of Charlottesville. There are 14 on the market in Rockbridge County (home of my alma mater) – at least an hour and fifteen minutes away (realistically 90 minutes).Less inventory is a good thing, at least in this transitional market.* Albemarle, Charlottesville, Greene, Fluvanna, Nelson* This post was inspired by Rob’s continuous tracking of his market.
Condos and CharlAlbemarle market stats
The market in the Charlottesville/Albemarle region is, shall we say, different than it was last year.”It’s a great time to buy” – the new media blitz from the National Association of Realtors. I have said it before and will say it again – housing is not, nor has it ever been, an immediately liquid investment.Condos -From the first of the year to 1 November:2006: 498 Condos were sold in CharlAlbemarle895 Condos were listed2005: 379 Condos were sold in ChalAlbemarle544 Condos were listedSo, yes, condos have been supporting the local market quite well…. –Mark Twain (attributed to)Taking a cue from Ardell, here are a few different angles:1BR condos: far more one bedroom condos were sold in 2006 compared to 2005, due primarily to the continued trend of condo conversions…. However, the average price in 2005 was $169k versus $159k in 2006.2BR condos: Average price per square foot in 2006 – $195/foot.