Tuesday, August 10, 2010

The DIA Ribbon Cutting is Today....What Impact Will There Be On the Cville Area Housing Market?

Instead of focusing on the DIA ribbon cutting like NBC29, for some reason the Newsplex has a story focussing on the local hope that there will be a "boost" to the real estate market.

Just as the new facility opens, new data shows just how low real estate sales have dropped in Albemarle County.  Once the federal Homebuyer Tax Credit expired, available from April '08 to April '10,    the sale of single family home sales plunged 52%, while the sale of townhouses plunged 69%.

The DIA will boost the economy with new bodies needing materials and services, and it will boost the tax base.  Most of these jobs, however, bring employees with themSome of these folks will want to buy, but a good number will rent.  And of the ancillary jobs created in the community (many of which will be food service, Lowes, and Walmart workers), the wages don't equal the ability to buy a "home."

The bubble's not likely to get reinflated, even with a few hundred new employees wanting to buy between now and 2011 (the projected date of full employment).  Albemarle is hurting for business and has a housing crisis--at least 15 months of inventory for single family homes, lots of folks losing their shirts in short sales, foreclosures, or unable to sell because they bought at the peak and are now underwater. And:  When the Homebuyer Tax Cred ended on April 30, sales plummeted.  Where's the main stream media reporting on this?

So what impact will DIA buyers have? 
Sadly for the C'ville Albemarle area, however, there are far better real estate deals--and better commutes--north of DIA: Greene County, Madison County, even Orange County all have better pricing and easier commutes.  Culpeper has been swamped with foreclesures, which mean much better prices.  

Buyers and Sellers:  keep it in perspective.  Many RE "professionals" don't know--or don't want to know--about the realities of local, regional, and national economies.  You're mostly on your own.

Buyers: don't rush in.  The first time you hear the phrase "multiple offers," walk away.  It's likely there are at least a dozen more properties that will suit you just fine.   

Sellers: most properties aren't going to rise in value any time soon; in fact, most will have a hard time selling.  If you price lower than your "competition," you'll have a better chance of selling.

Video from the Newsplex story

This post, like all on this blog, contains opinion that is not to be misconstrued as financial advice pertaining directly to your particular circumstance.

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