The metropolitan area of Charlottesville, Green County, Fluvanna, Nelson and Albemarle County Va., where Thomas Jefferson founded and designed the University of Virginia, is the best place to live in the USA, according to a book published in March 2004.

Cities Ranked & Rated (Wiley, $24.99) gives high marks to several other college towns, including Ann Arbor, Mich. (No. 6) and Corvallis, Ore. (No. 10).

At the bottom of the rankings of 331 metropolitan areas are Laredo, Texas (No. 331), Stockton, Calif. (No. 330) and Newburgh, N.Y. (329).

The new publication rated over 400 cities in the United States and Canada in ten different categories, and found that Charlottesville attained the top overall rating.

The ten evaluated categories included Economy & Jobs, Cost of Living, Climate, Education, Health & Healthcare, Crime, Transportation, Leisure, Arts & Culture and overall Quality of Life.

The 820-page book by Bert Sperling and Peter Sander gave the most weight to the three categories they say most affect daily life: cost of living, climate and one subjective measure: quality of life.

Virginia Governor Mark Warner presented the Best City in America plaque to Charlottesville Mayor Maurice Cox, Vice-Mayor Meredith Richards and Albemarle County Board of Supervisors Chairman Lindsay Dorrier. [Picture from www.charlottesville.org]

Despite what you may have read in a recent Daily Progress article, the real estate market in the Charlottesville area is not down during the first quarter of 2004. Unfortunately, the Daily Progress was given some incorrect numbers included in some statewide figures that caused them to misreport on the local market. The real estate market in the Charlottesville area actually remained very strong in the first quarter. The first quarter of 2004 finished just ahead of last year’s record pace for closed transaction. According to figures from the CAAR Multiple Listing Service, 630 homes were sold in the Charlottesville market area (including the counties of Albemarle, Fluvanna, Greene, Louisa, and Nelson, and the City of Charlottesville) in the first quarter compared to 618 in the same period last year. (Note: total figures include all properties reported to the MLS even if they were outside the main market areas.)

Each month, CAAR publishes market statistics on the number of transactions closed, the number of listings that went under contract, the median sales price, the average days on market, and the number of new listings. These figures are tallied on a year-to-date basis every quarter and are compared to the same information from the previous year. This year a new category has been added called Price per Square Foot that will allow us to compare housing costs between counties.

Transactions Closed

As stated above, the first quarter saw a small increase in closed sales from last year. Strong increases in Charlottesville and Fluvanna more than off-set small drops in other areas. Albemarle was the top sales area with 249 sales for the quarter, (down 5% from last year). Fluvanna is the second largest market with 116 sales (up 43%), followed by the city of Charlottesville with 85 (up 30%), Nelson 66 (down 19%), Greene 44 (down 20%), and Louisa 27 (up 5%).

Under Contract

Properties that are “under contract” are ones that have a ratified sales contract that have not yet closed. This is, of course, an important indicator of how the closed transaction market will be doing in the coming months. The first quarter “under contract” figures for 2004 were slightly down from the same period last year by 1.2%. For the quarter, 937 listings went “under contract” in 2004 compared to the previous year when 948 went “under contract” during the same period.

Median Sales Price

The median sales price is a better indicator of what the “average” home in our area sells for than is the average sales price. Our area is blessed with many estates and homes that often sell for more than a million dollars. In the first quarter of 2004, for instance, 12 transactions were closed for over one million dollars. Such properties distort the average sales price figures dramatically. The median sales price, on the other hand, is the number that represents the middle of the market. 50% of the homes in our area sold for more than this price and 50% sold for less than this price. The median sales price for the entire market area in the first quarter was $201,900 which is $22,000 more than the previous year’s figure. Albemarle is leading the way with a first quarter median price of $262,950 (up 14%) followed by Nelson $235,000 (up a remarkable 58%), Charlottesville $179,250 (up 9%), Fluvanna $167,700 (up 12%), Greene $159,450 (up 1%), and Louisa $155,000 (down 21%). Keep in mind that the dramatic increase in Nelson and the decrease in Louisa are based on a fairly small number of transactions and probably don’t reflect a major shift in the market.

Days on Market (DOM)

The best indicator of a hot market is found in this category. The average DOM for the area has trended downward over the past few years, but this trend was reverse in the first three months of 2004. In the first quarter, the average DOM for all sales reported in the Multiple Listing Service was 101 days which is 24 more days than the same period last year. All areas reported significantly higher DOM numbers. Charlottesville led the way with DOM of just 78 days (up 29 days). The DOM for other areas was as follows: Albemarle 103 (up 33), Fluvanna 88 ( up13), Greene 123 (up 40), Louisa 112 (up 21), and Nelson 132 (up 41). Is the market slowing down? It is too early to tell for sure, but with sales still strong, the market still shows many signs of strength. This will be an interesting statistic to monitor over the next few months.

New Listings

One factor that affects the DOM statistic is inventory. If inventory is low, then there are fewer properties for buyers to consider and properties sell more quickly. CAAR tracks the number of new listings that come on the market each month to help us monitor the inventory of available homes. The inventory shortage that has plagued our area for the past few years eased slightly during the first quarter. As of mid-April, 2004, our database has 1,182 homes actively listed for sale (down 72). We can expect around 250 homes to be purchased in April. That means that there are roughly 4.7 homes available for every buyer in the entire market area. Statistics from the first quarter suggest that the inventory of available homes is getting slightly tighter. Just 40 more homes to came on the market in the first three months than in the same period last year which was not enough to re-fill the cupboard following the record sales of last year.

Price per Square Foot

New to the market report this year is a look at the average price per square foot of the properties that have already closed. This category will help us track the affordability of housing across jurisdictions in our area. Since this is the first quarter we have tracked this number, it is too early to draw major conclusions, but over time, this will be an interesting category to watch. The most expensive area per square foot was Nelson at $152 (up 21.6% from last year). The other areas were as follows: Charlottesville $137 (up 20.2%), Albemarle $135 (up 8.9%), Fluvanna $99 (up 4.2%), Greene $114 (up 20%), and Louisa $103 (down 2.8%).

Conclusions and Forecasts

At the beginning of the year, I predicted that 2004 would show a slight increase in sales over the 2003 record level. So far, this prediction is on target. Interest rates are forecasted to increase slightly, but the local economy is thriving, so my prediction looks good at this point.. Some analysis might be tempted to refer to the current conditions as a “sellers market,” but this is also a good market for buyers and owners. Inventories are still low, so prices are continuing to rise rapidly. If you are planning to buy, the sooner you do, the better your investment. It may not be easy for buyers to find a home to purchase, but it is not expected to get any easier over the next few years (or longer). If you have any questions on these market statistic or other aspects of the local market, please contact your REALTOR or me at 434-817-2393 or Dave@caar.com.

By Dave Phillips, CAE
Re-printed with permission from the Charlottesville Area Association of Realtors

Virginia Estates, Frank Hardy Properties has launched a new Database, with thousands of additional real estate listings, including sections for residential properties and country properties, in addition to a category for estates and farms for sale.

The residential properties section includes Virginia homes for sale under the 5 acre range, the country properties category maintains database listing for acreage between 5 to 50 acres, while the farms and estates pages carry land and property listings for those looking to browse central Virginia listings over 50 acres.

Each main section of the database is broken out by price range within the three major categories in order to expediate your search process.

Pictures are available for most listings, click the picture for more detail on your specific home or property for sale.

Details for each property listing typically include a brief description along with price, location area, lot size, school district, number of bedrooms, baths and total square footage.

You may also select an option to submit an email address in order to receive details on any particular property of interest.

We also encourage you to call Richard Walden, owner of Virginia Estates, direct at 434-981-5923 for more information on privately listed properties available in and around central Virginia.

Browse our database of homes for sale in Virginia.

By: Sean C. Corso