Waldo’s comment at the VPTC blogging conference and my recent experience in the shifting market shows that, at least from a perception point of view, property values may be moderating. Anecdotally, there seems to be more flexibility in Sellers’ pricing as well. What do the data say?
Using the following set of criteria: from 1 September 2003 to 1 November 2003, 258 homes were reported as sold in the MLS inÂ Charlottesville/Albemarle (CharlAlbemarle) – I had to limit the search timeframe and area for sanity’s and the database’s sake.
Properties in the above timeframe were on the market for 69 days and sold for 6.2% more than the asking price. Average price per square foot was $142.50.
Contrast those numbers with the same timeframe in 2005. 355 properties sold, 61 of which (18%!) were condos – 44 of these were condo conversions, the remaining were new.
Properties were on the market for 53 days on average and sold for 2.9% more than asking price. Price per square foot was $177.24 – quite an increase in 2 years.
I place little value in the days on market data, as the data entry aspect is a tricky thing. Looking at the numbers, properties are not depreciating, but are appreciating less quickly. Inventory is higher.
I see the market slowing; properties now are staying on the market longer and sellers are looking at goals other than a firm selling price when considering offers.