Wednesday, March 23, 2011

"Almost Ready" - A Reader Explains the Decision to Buy in the Charlottesville Area

As of March 20, the Charlottesville Albemarle area has seen 17% fewer home sales in 2011 v. 2010.  January to February sales dropped significantly both locally and nationally, and the median price year-over-year has nosedived.

Qualified buyers aren't presenting themselves with the same speed as they did last year when the Homebuyer Tax Cred was in place.    Good news for willing buyers, right?

So one buyer, under the name "Almost Ready,"  has shown up in the comments section explaining the decision to move forward.  Other commenters are weighing in.  If you'd like to add input, please do so at that post.


The Bubble Blog take on this?  Everybody needs a place to live. This blog is not anti-buying (and has said so since 2008).  It's anti-bubble pricing, anti-spin, and pro-transparencyThe asking price is not the offer nor selling price.  Houses are not investments.  At this point, an opinion, there's still plenty of downward pressure on local prices from large inventory, distressed sales, unemployment, let alone gas and food prices and national/global economic instability.  

Plus local lack of qualified buyers who plan to stay the 7-10 years necessary to own most homes without losing significant $$$.  This area is highly transient: about 30% of the population leaves every yearOpinion: it's going to be a buyer's market for some time to come, though there will be the usual Spring/Summer burst of activity.

Wishing Good Luck to "Almost Ready."

6 comments:

Montpellier said...

Opinion: it's going to be a buyer's market for some time to come...

Boy, you can say that again!

...though there will be the usual Spring/Summer burst of activity.

I dunno...how did the old anti-war saw go, "What if they threw a war and nobody came?" Banks are not lending...we've had extend and pretend for three years now...how long can that really go on?

Anonymous said...

Sorry, this is kind of off-topic, but it is AWESOME. Read along and try to generate a price in your head. . . .

MLS#: 486431

"Remarkable Bellair property ready for finishing touch. Built in 1957, *previously damaged by fire*, this home has been *remodeled back to sheetrock* and is ready to be finished."

Claims 7500 square feet and notes, "square footage is approximate."

"Amazing lot" = 1.3 acres.

Asking price?
$1.25 M

Duh, winning!

Anonymous said...

Ah, according to the GIS, back in 2007 before it caught on fire, this remarkable property was valued at $652K. So it makes perfect sense that now that it has been restored to sheetrock, AND the bubble has burst--it is worth twice that.

Familiar with the website "You Suck at Craigslist"? It seems "You Suck at CAAR Listings" is just waiting to be born.

Montpellier said...

Has anybody looked to see what kind of notes that house is collateral for?

I'll bet whoever "owns" it burned through all the insurance money before finishing it.

86 said...

motivated seller. never seen a house at this price point take such huge price reduction except in increments over a year/two.

$100,000 / 30%

1598 Thos Jeff Pkwy 22902

now $229,900

mls 484758

http://www.trulia.com/property/3043303150-1598-Thomas-Jefferson-Pkwy-Charlottesville-VA-22902

Anonymous said...

My wife and I look forward to owning a house in the area someday, but it seems crazy to buy a house now. Everything still seems very, very expensive--just because a house is $100k less than it was in 2006, doesn't mean it's a bargain. I imagine things will be at a much more reasonable level maybe two years from now, but currently way too may sellers have not wised up to the new reality. It's a great time to be on the sidelines.