Tuesday, June 16, 2009

Snapshot: Charlottesville - Albemarle Real Estate Market Mid-June 2009

During the past seven days ending June 15, 66 properties came on the local market: 40 in Albemarle County, 26 in Charlottesville (and more in the surrounding Counties).

The following properties have their own "quirks" associated with the listings, which are symptomatic of this befuddled market, which has had declining sales and rising inventories since 2005.

There are also two main "issues" with any of these properties:

1. Can Buyer get an affordable mortgage?

2. Will the property appraise at Asking or Offering price under the new Home Valuation Code of Conduct? Don't miss this article from The Wall Street Journal: "Appraisals Roil Real Estate Deals." This is subscriber content. But WSJ wants Google hits, so copy and paste this: "Appraisals Roil Real Estate Deals - WSJ" into the Google search box, and you'll receive the text. (Links won't work.) This is perfectly "legal"; instructions are via Business Insider.



MLS 466673 - 5932 Blenheim Road - $6,000,000.00

The owner is a Realtor trying to sell a 7500 square foot house on 296 acres in Albemarle County. What could this agent know about the market that others don't? Great time to sell?

MLS 466463 - 1701 Bentivar Drive - $5,100,000.00

House: 11,000 sq ft Acreage: 88. Purchased: 2004 $3.2M. Assessed: $3.3M. Note differential between assessment and Asking; and expectation of increase in "value" in five years. Not much moving, nationwide, at this price point.

MLS 466545 - 3518 Glasgow Lane, Glenmore, Keswick - $768K

5100 sqft of house, "Dowell Scottish Home Winner of 5 awards 2004 Parade of Homes." Purchased: 2004 $628.2. Assessed: 683.4K. The usual Glenmore offering: recent construction, owner wanting to move after 3-5 years, assumption of increase in "value." How many houses fitting this same profile are currently available?

MLS 466627 - 672 Kearsarge Circle - $450K

This is a solidly middle-class cul-de-sac west of Cville on the way to Crozet, with long-term residents who bought at five figures, or families who bought in the 200's, occasionally 3oo's. The CMA doesn't take into account what houses on this street have been selling for, which is often what CMAs do: ignore the immediate neighbors value, ignore the historic price-to-income ratio, ignore the area median income, ignore the YOY sales declines, ignore the VHDA projection of price declines.


MLS 466580 - 1429 Briarcliff - $239.9K

This 1700 sq ft rancher in Cherry Ave./Forest Hills neighborhood has had a 100% increase in "value" since 2000. This happens at many price points. There's a persistent idea in Charlottesville that the Bubble prices that were achieved really are the actual values of the properties--though sales have been declining here since 2005. But every time a house goes under contract, there's hope that a flood will follow. (A flood won't follow.)

MLS 466660 - 709 Graves Street - Belmont - $317K

Purchased for $200K in 2007, this 1677 sq. ft. house has been split into two apartments (you can find one listed for rent on Craigslist right now). The house overlooks a light industrial area and railroad tracks, but is in walking distance to Downtown. Nevermind that you may want to have the interior and the soil professionally assessed for lead and other industrial chemicals (as you may for any house this age or in a similar kind of location), then do a major remediation if positive: it's walking distance to Downtown AND Downtown Belmont!


"Relistings" can erase the history of a house being offered for sale. Some call it "MLS washing," and dishonest. Others claim legitimate reasons for giving a listing a "break." A competent real estate agent will provide a buyer with all sellers' earlier listings.

Albemarle County

MLS 466654 - 2554 Fray’s Mill Road - $585K

10 acres 2bed/2baths 1,500 sq feet. Purchased: 2000 for $217.5K. Assessed: $349.7K.

This house is in Ruckersville, north of Charlottesville, in Albemarle County, and is being marketed toward NGIC folk.

MLS 466636 - 1711 Old Forge Road - $369.9K

This house, which has County taxes but is moments from Barracks Road Shopping Center, didn't sell back in the Fall, when it was listed for $20K less.


MLS 466612- 714 Levy - Belmont - $359K

Relisted $15k less. A property on Graves Street went under contract when listed at this price a couple weeks ago.

MLS 466610 - 906 Martin Street - $340K. Purchased 2004 $278K. Assessed $250K.

This house, close to the 250 Bypass north of Downtown, didn't sell last Fall when its asking price was $400K. Now it's a Short Sale. That price differential? It's a cash-out re-fi or HELOC, etc.

MLS 466402 - 724 West Street - $254.5K

New construction in the 10th & Page neighborhood. In the Fall, though listed $30K higher, a Vespa was offered w/this house. This house not only hasn't sold, but the Vespa store is closing. Coincidence?!

MLS 466404 - 728 West Street - $198.5K

Yes, it's next door to 724, though it's a rehabbed 20's bungalow. There are at least two more houses for sale in the 700 block of West Street, part of the 10th & Page neighborhood that was low-income and behind light industrial use commercial properties--and therefore undesirable until the Bubble. Many other houses are for sale in this area, whose gentrification has literally frozen, with prices coming down. 10th & Page, it turned out, was not the New Belmont.

Related Reading:
Gen Y Priced Out of the Cville Market
Lack of Move-up Buyers in Cville Area
Virginia Housing Development Authority Forecast For Regional Market
The Five Waves of the Housing Collapse - T2 Partners Via Business Insider
Baby Boomers and Housing Bubble Bust - CEPR


Anonymous said...

Another Albemarle County Relisting to add to the mix is MLS466093 - 1353 Courtyard Dr.
This 3bed/2baths 2,116 sq feet house on .15 acres is in Redfields. Purchased in Jan 2008 for 335K, Jan 2009 assessment at 315K. It didn't sell in the Fall at 359K, "major price reduction" in early 2009 to 349K and is now listing at 329K with a new MLS/Agent.

Anonymous said...

New to the market (Albemarle) today:

MLS 466700, 252 Millstream (just one picture -- great marketing effort!)

Bought 2007 for $803k
Assessed 2009 for $696k
Listed 2009 for $899k

I'm sorry folks, but this is just NOT a $900k property. Not here, not anywhere. Whoever dreamed up this ridiculous list price needs to be smacked up the side of the head. The seller must be trolling for some complete idiot from outside the area to rescue him from a terrible purchase in 2007.

Seriously said...

Realtor Amy Toomy is also trying to sell another Albemarle County property MLS 466705 5820 Blenheim Road $4.5 Million 136 Acres.

Maybe she should call Wendell Wood, who seems to be the only developer doing anything with his props. Then again, he DIDN'T BUY DURING THE BUBBLE.

Pavel said...

Seriously, it's the same property with less acreage. This is not a new listing either - it's been on the market since 2007.

Anonymous said...

How about a pricing history, Pavel? How much has the price come down in two years?

Anonymous said...

So the 136 acres were bought in 12/06 for $3.5M and assessed in 2009 for $2.9M, and the asking is $4.5M

Is anybody going to attempt to use logic in explaining this?

"Millionaire" Homes to Lose 60% of Value said...

According to JPMorgan Chase

Bottoming in 2012


Anonymous said...

MLS 466579 list $436K
Looker. There are many relistings.

3571 Red Hill School Road
House has been "new listed" numerous times. I believe price was reduced and then raised again although I can't access previous MLS data. No pictures show the high volt power lines that the homeowner will view out back along with the mountains.
2009 Assessment $427K
Land purchased 2003 for $49,900
Home built 2007

Real C'ville - The Bubble Blog said...

"Logic." Let's not get too serious here, Anonymous.