Real Cville notes that that new construction permits in Albemarle County are down significantly, as is sales volume. The impact for local governments is going to be dramatic. They’re right – and these two data points are both good and bad. Building permits being down is a “good thing” – it means that less new inventory is being added to the market and thus buyers are going to be purchasing existing (resale) homes.
Albemarle County released numbers for the first part of 2008. 266 building permits for new residential housing units were issued in the first six months of 2008. This puts 2008 on target to meet the lowest number, yearly, since 1990, when anybody started keeping tabs. The record lowest number was 569 in 1995. The highest was in 2003 with 1,720 permits issued.
In short, volume is down, and prices are generally at 2006 levels. I am discounting the Charlottesville and Albemarle median prices because these numbers include condos.
From a seller’s perspective – if you don’t have to sell right now, seriously consider not selling.
From a buyer’s perspective – do your due diligence; it very well might be worth buying right now.
Note that the below data is inclusive of condos, attached and single family homes. One of my goals for next month’s third quarter market report is to pull condos out of the equation so that we can better compare apples to apples.
Update – the numbers below are from 1 January to 1 August, respectively.
For an example of the condo component of the market (again, more detailed analysis coming in early September):
Condo volume in 2008 in Albemarle County is down nearly 40% and condo volume is down in the City of Charlottesville is down about 35%.
* this post is a good segue way into my post recapping my week so far in Austin, Texas.