Charlottesville VA Real Estate Market Update

Current mortgage rates for 30-year fixed is 5.65%

Consumers are being stretched thin by inflation, from the gas pump to the grocery store, and are beginning to slow their spending compared to last year.

Mortgage rates are rising at the quickest pace in 40 years, with a 30-year fixed-rate mortgage reaching the highest level since 2009 last week at 5.53%, as inflation keeps growing and there is speculation about an imminent economic slump.

Experts predict a real estate slowdown in the coming quarters: According to CoreLogic’s research of the country’s top regional housing markets, there are 70 regional housing markets with a greater than 40% chance of seeing home prices decrease in the coming year.

The perfect storm of increased demand due to Covid, a robust stock market, and low real estate inventory fueled a two-year buyer frenzy that saw prices rise 20% in a hot seller’s market; this affected Charlottesville real estate market and Charlottesville realtors as well.

Farm and estate specialists like Charlottesville Country Properties noted renewed appreciation for properties with acreage mirroring the national trend of migration from urban to rural lifestyles, especially from affluent professionals who can now work from home.

Recent mortgage interest rate increases and an unpredictable stock market have slightly tempered the Charlottesville real estate market, which may be a welcome trend for buyers waiting for the market to cool off a little.

We do not expect Charlottesville, VA, real estate prices to appreciate as quickly as they have over the last few years. Still, demand for farms, estates, and land should stay steady due to the work-from-home trend and the proliferation of broadband internet access even in once remote areas.

• The median sale price of a home in Charlottesville, VA, was $403K last month, up 2.6% from the previous year.
• Charlottesville’s average sale price per square foot is $291, up 13.2% from last year.
• In general, Charlottesville home prices were up 2.6% year over year in July 2022, with a median price of $403K.
• Homes in Charlottesville sell in 9 days on average, compared to 69 days last year.
• In July of this year, 64 homes were sold, down from 70 in July the prior year.
• The number of listings in the Charlottesville, VA, real estate market increased by 51% between July 2022 and August 2022.
• The median list price in August 2022 was $439,999, while the average listing age was 48 days.
• In July 2022, 277 homes were sold in Charlottesville, VA, up from 120 the previous year.

Charlottesville Real Estate

Call John Ince for information on new listings, price reductions and properties coming soon in the Charlottesville, VA area.

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Market update for the Charlottesville real estate market including:  Albemarle County, VA, Orange County, VA, Madison County, VA, Greene County, VA, Nelson County, VA, Fluvanna County, VA, Louisa County, VA real estate.