Monday, November 7, 2011

Charlottesville Area Home Price Decline of 5.8% is "More Severe" Than Other Parts of the Country

The Newsplex is making the comparison of "more severe here than other parts of the country" after posting data from housing analyst Core Logic.  While the national rate of decline was -4.1%, the Charlottesville Area saw a -5.8% decline from September '10 year-over-year to September '11. 

The Charlottesville Area is still a declining market--meaning prices will continue to drop.  Much of the area hit its price peaks later than the rest of the country, so larger price drops aren't unexpected.  As an example, here's a month-by-month recap of peak prices, and recent lows, for the City of Charlottesville.

Price declines like this lead to the value of all homes dropping, meaning more owners are dragged "under water," a slang term for negative equity.  Just a small drop in a home's value can wipe out years of mortgage payments. 

And price declines can lead to the continued rise of foreclosures in this area.

A recent graph shows the City of Charlottesville sales crash.

And Charlottesville Area home sales  are at a 13 year low: click for larger image

 Read The Newsplex story here; below is a screenshot of the report. click for larger image.

No comments: