Friday, December 17, 2010

Charlottesville Albemarle Real Estate Update - December, 2010 - The Advantages of Homeownership

It's not an investment, and it's not for everybody.



The video is from xtranormal via Patrick.net.

The last thing we posted in November before disappearing off the face of the earth taking a blog hiatus* was the Va Housing Development Authority forecast for this market, indicating low volume of sales, need for increased affordability, and falling prices through at least 2012.  As if to immediately affirm this, sales in the Charlottesville Albemarle Area continued the downward spiral that began in July: November sales are down -32% YOY .  

And the latest 'headwind':  30 year fixed mortgage rates have suddenly exploded to 5.19%

Buyers know that sales are down, the economy still sucks "feels" like Recession, and prices will continue declining.  But everybody needs a place to live, and some want to "own" that place.  Some people will buy if they know they're going to stay put for the next 7-10 years.

At this point, however, the majority of Americans know the housing market is weakening and will continue to be a tough road through 2013.  It's only sellers, and their reps, who want to believe the 'future is unknown.'

There may be some wiggles and surges, especially seasonally, but essentially, the handwriting is on the proverbial wall: this one, and this one.
 

Blog note:  When 2011 begins, this blog will post on Tuesdays and Thursdays.  In the interim, there will be some end-of-year and catch-up posts.

*Thanks very much for reading, checking in, and emailing while the blog was dormant in cyberspace.

2 comments:

AliG said...

welcome back!

Jasper Fehrman said...

First off welcome back. I missed your insights. Secondly I would agree that buyers are the people who will most likely stay put for a few years but other buyers will expect to sell as the markets gets better if that ever happens.Once again I'll say welcome back and don't leave for so long next time.