Friday, February 4, 2011

UPDATED: Home of the Moment: 910 Rougemont Ave - Collateral Damage From the Charlottesville Housing Bubble

Updated Februay 4:  
The price of this home is based on tax assessment, as per listing.   Tax assessment for 2011 dropped nearly $20k.

Original post, January 19
This is the saddest  listing in Central Virginia:
"Property must sell at assessed value to satisfy nursing home eligibility.  Pluses include: off street parking, hardwood floors and new furnace and hot water heater but overall condition of property is poor."
910 Rougemont Avenue is a tiny bungalow in "lower" Belmont ( (not the "trendy" part), a neighborhood in Charlottesville.  It was listed for sale Tuesday, January 18.  941 sq feet for $210,200: that's a bubble price of $223 per sq foot; average p/sq/ft now is $140.  MLS #484357.  The current owners paid $16,400 in 1967.

Tax assessments in VA are based on "fair market value"--what a property would fetch in an "arm's length transaction" without external duress.  Since this market has a huge inventory and prices are falling, most buyers see tax assessments as 'wishful thinking.'


The listing certainly does answer that perennial question: "Who sets the price?  Seller or Agent?"  Apparently the answer in this case is neither.  Mary Newton of Keller-Williams presents this listing. 

Not only are single family home sales in the City of Charlottesville at a decade-low (reports abound of current sellers panicking), but this house faces stiff competition just next door and down the street: houses with lower prices for better condition and twice the square footage.  

Best wishes for this one.

Click on images for larger versions.

The listing for 910 Rougemont:

The "competition" - 900 Rougemont Ave - $199,900

The "competition" - 912 Rougemont Ave - $164,900
Related Reading
2010 Was the Worst Year in the Cville Area Housing Downturn--Thus Far 

Images copyright CAAR and Trulia.com

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