Is the Crozet real estate market slowing? Maybe, for some pockets.
Jim: Hey. I’m Jim Duncan with Nest Realty (434-242-7140).
Greg: And I’m Greg Slater with Nest Realty. We wanted to take this opportunity to talk to you a little bit about the Crozet Market. When we talk about the Crozet Market, we define it as the elementary school districts of Brownsville Elementary and Crozet Elementary.
Jim: Mm-hmm (affirmative).
Greg: First and foremost, unlike the rest of the market, closed sales were down in 2018 over 2017. But if we look at that a little closer, we’ll see that there was actually an increase in the attached sales. And when we talk about the attached sales, we’re talking about both town homes and villas. The home [inaudible 00:00:42].
Greg: And detached sales were off. So-
Jim: How much?
Greg: We’re seeing a little shift in demand.
Greg: Roughly 40 sales which is about 16%. You know, the other thing you have to consider in this market is a third of our sales are new construction, right? That’s almost double the rest of the market-
Greg: So there’s still a lot of growth out here.
Jim: For the fourth quarter of 2018, just in Crozet again … new listings are up about 24% and pendings are down about 3%. I think that’s one of things … we’re doing a little bit differently this quarter is that we’re going to do less market data and more specific advice for buyers and sellers in the Crozet area.
Jim: When you’re looking at the data, look at the more narrow, targeted information so you can make actionable information data. So for Crozet, for people who are looking at selling their homes in 2019 … it’s mid January now. Our market tends to heat up mid, late February. And the new listings tend to peak until May or June for the most part.
Jim: For sellers, understand that most like you’re going to be competing directly with new construction almost regardless of price point.
Buyers are evaluating all of their options. So price according to where your market is, where your market segment is, with the right advice.
Jim: Prepare as if you’re competing against new construction. Understand that everything has to be perfect because those buyers are probably looking at new and they’re going to accentuate any deficiencies in your home. So try to evaluate those.
Jim: Pay attention to the data points of inventory in your market bracket. If you’re in the $400,000 to $500,000 dollar price point, know what your competition is, what your active competition is, and the velocity of the homes that are gone under contract. And you can price using those as benchmarks.
Jim: And then understand what the replacement cost is. With a third of home sales being new last year in 2018, recognize that if your house coming on the market at ‘x’ price and you can build it for ‘y,’ a lot of buyers are going to go for that ‘y’ price. So just be very mindful of how you price your home.
Jim: What about for buyers?
Greg: On the buying side, I’d start with encouraging my people to broaden their filter a little bit and make sure they consider some things maybe they already know they don’t want. Because that comparison and that context for … whether it’s the pricing, or condition, and things like that can really help you understand what you want. And so that you’ll know it when you see it.
Greg: Another thing I talked to them about is considering the overall cost of home ownership for that particular home. There is the location which could have a commuting factor. There is the utilities, the size of the home, and how much it’s going to cost to operate is in the efficiency of the home.
Greg: But there’s also future maintenance, right? Particularly when you’re comparing the new when you have warranties and brand new equipment. But if you’re buying a home that’s over 10 years old and the HDAC hadn’t been replaced … sometimes you have to budget for the major components to be replaced in the coming years. And that’s the biggest one we watch out for.
Jim: The best buyers and sellers in our market, or any market most likely, are the ones who are best prepared to make a decision that is going to impact the rest of their lives. For most people, this is the single biggest investment they’ll ever make. So make sure that you go in with the right information and the right representation.
Jim: And we’re beginning to put out our annual report at Nest next week.
Greg: It will be in print next week.
Jim: So anybody out there, if you would like to copy in your report, give Greg or myself a call or an email. We’d be happy to talk to you about buying or selling in Crozet.
Greg: We’ll see you out there.