The Charlottesville Area Association of Realtors Third Quarter 2011 Report is for the region. Data can vary widely from the City, and County to County. This report is an overview.This post: What do "Active Inventory" and "Days on Market" mean for buyers and sellers?
Next post: How much have prices fallen in particular areas? How much will they continue to fall?
First, the 2011 basics compared to 2010:
- Prices for region are down -7.3%
- Sales for region are down -2.3%
- Inventory for region is down -7.6%
- Days on Market for region remains unchanged
The CAAR report opens with active inventory (houses for sale) numbers
"Currently, there are 3,239 homes on the market, compared to 3,506...one year ago. This continual float down of active inventory represents progress toward what is considered a balanced, neither buyer's nor seller's advantaged, market of 2,000 to 2,500 listings."But the truth of the current market is harsh: the reasons there is less active inventory are not good news. ID'ing correctly the reasons for declining inventory will go a long way in correctly pricing a home: prices will continue to fall for quite some time here, and everywhere else.
- New listings are down due to the time of year.
- There are fewer listings because there are fewer "move up" buyers--folks are just staying put, knowing how hard it is to sell.
- There are fewer listings because of the area's rising foreclosure rate; folks are sliding into foreclosure before they even try to sell.
- There are fewer listings because many folks owe more than the house is worth; even if they can continue to pay the mortgage, they know they'd take a big loss if they tried to sell.
- There are fewer listings because sellers know how few buyers there are--there's a trend toward renting.
- The sad ever-increasing presence of the "accidental landlord" continues to be a phenom in this market.
Further, the statement that there are "26% fewer listings in Q3 than Q2" is disingenuous: there are always more listings in Spring than the end of the summer.
- RealcentralVA: Data and perspective on the Q3 CAAR Report
- RealCentralVA: "The Charlottesville Market is still declining"
- Nest Realty: Fewer people are looking at homes in this area: buyer is traffic down
- RoyWheeler CEO: 6 Years Into Downturn, We Are Not Yet In Recovery Stage
- The Newsplex has a brief blurb on the report.
- WSJ: How to Make a 'Lowball' Offer
DOM - Days On Market
Images copyright CAAR.