Western Albemarle First Quarter Real Estate Report

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First Quarter Housing Sales in Crozet Jump 60 Percent

By David Ferrall

Chart courtesy Nest Realty
Chart courtesy Nest Realty

At this time last year the Charlottesville real estate market was seemingly taking a breather. Coming off strong sales in 2013 and bitter cold weather in the first quarter, there seemed to be a damper on real estate enthusiasm. This sluggishness was shrugged off as the year progressed, and total sales during 2014 in the Charlottesville market exceeded those of 2013, though Crozet experienced an ever-so-slight one sale decline. A similar set-up seemed to be in place this year, with frigid February temperatures and snow holding first quarter sales to the same level as last year (see above chart provided courtesy of Nest Realty).

But that didn’t hold true in Crozet, where first quarter sales jumped 60 percent over the same time last year! Most signs now point toward a post-recession-high number of sales in Crozet for 2015.

There were a total of 40 sales in the quarter, up from 25 at the same time last year. Thirty-four were for detached homes and six were townhouses. There was only one sale over a $1m in the quarter, which will be excluded for statistical purposes in this report. The property at 7284 Blackwells Hollow finally sold for $900K, after being on the market for 2116 days. This property was large and expensive, but still highlights the continuing trend of in-town vs. county properties. Only one sale in five is for properties of an acre or more; the bulk of all transactions in Crozet continue to focus on neighborhoods and new construction in developments near downtown.

Of the 34 detached sales, 10 were for new construction. Six were in Old Trail, three in Wickham Pond, and one an affordably designated property in Westhall. This was the last available “affordable” detached option currently in Crozet, although there are at least five such townhome opportunities currently available in Wickham Pond.

New home construction averaged $171 per finished sqft, while overall the detached price per finished sqft dropped 5 percent to $161 for the quarter. The average price dropped as well for the quarter to $421,000 down 3 percent from $435,000 in 2014.

There were only six townhome sales in the quarter. Three were for new construction in Old Trail, the others were resales in Parkside, Highlands, and Wickham Pond. The average price rose 17.5 percent to $301,000, and the price per sqft rose 8 percent to $160. The lack of new inventory outside of Old Trail and Haden Place may be hindering sales in the segment, as single-digit sales is not the norm. But buyer preference may also be shifting slightly towards detached properties.

There were three sales of distressed (bank-owned, foreclosure or short sale) properties in the quarter, which is up over the same time last year but in line with the 12 total such sales in all of 2014. This number has been decreasing since 2010 and hopefully will continue to do so.

First quarter numbers can’t help but paint a rosy picture for Crozet real estate. Strong quarterly sales and pending contracts are positive indicators. Freddie Mac agrees: their latest housing report calls for the strongest spring selling season since 2007. And they are “as optimistic about trends in housing markets moving forward as we have ever been since the depths of the Great Recession.” With interest rates continuing to remain near historic lows, housing is affordable to many, if they can find what they want.

And therein lies the only issue facing the Crozet market: lack of inventory. Buyers and realtors alike  are hoping for new and fresher property choices. Multiple-offer situations are happening now with some new listings, often resulting in a higher-than-listing price for the seller. There is a dearth of inventory of homes in the $250-350K range, which is sadly almost considered a “starter home” in Crozet these days. But with continuing escalation of land prices, builders are hard pressed to offer much below $350K, and this trend will continue.

If you are in the market for a new home, remain diligent. Get pre-approved so you know what you can spend, and engage a realtor so you can get instant updates when new listings come on the market. With low interest rates and tight inventory, competition in Crozet remains strong in certain segments, so a buyer needs to be ready. If you are a seller, look at comparable sales and price your property accordingly. Appropriate pricing, strong marketing and excellent showing condition should yield a sale!

 

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