COVID-19 and Charlottesville’s Real Estate Market – #3

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A client asked me – what do you think about this (real estate situation we find ourselves in).

I told her – three months ago, I would have had an easy, quick answer to this. Now? I think we’re going to be ok, and here’s why. I proceeded to walk through my logic and rationale, making my way through the reasoning as much for them as for myself. This is a time when there are no more easy answers. We are in new territory, and whenever we come out of this, we – consumers, agents, real estate logistics – are going to be different. And that’s ok.

I don’t necessarily know what tomorrow’s going to bring, and none of us do, as we make our way through the quarantine. But tomorrow is going to come, and people are going to need places to live.

We’re in a New, but Evolving, “Normal.”

If a client asked me right now what’s happening in the market, these would be my initial points.

This is a different market than last year’s. It’s different than last month’s. Every day has always been an adventure; this market brings more new challenges.

Some buyers still want to buy homes; some sellers still want to sell. For buyers, showings are different – when we get inside a house, we touch fewer things (doors, door knobs, cabinet doors) and I usually stand outside the house after running through before my buyers do. Then we stand outside and talk. It’s a different experience and process than I’ve practiced before.

For sellers who need/want to sell – buyers are still out there. Preparation is still key. We’ll do a video walkthrough first (an actual walkthrough, not a fluffy marketing-driven walkthrough, but an actual showing of the house, and offers are being scrutinized far more heavily than three months ago:

• Who is the agent? Are they competent? Reasonable?
• The lender – local? Good local?
• The buyers’ jobs – stable? Are they going to have these jobs when we hope to close?

And we have new protocols, too.

(seriously, this is a good read for buyers and sellers)

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The market, though.

• Since 13 March, year over year, in Albemarle + Charlottesville, contracts written are off about 45%
• 430 homes were listed in Charlottesville – Albemarle between 13 March 2019 and 5 April 2019; 148 contracts were written in that time.
  • 287 homes were listed in Charlottesville – Albemarle between 13 March 2020 and 5 April 2020; 61 contracts were written in that time.
• Right now (6 April ~10pm), there are 63 pending homes in Charlottesville + Albemarle; 50 of those are not new construction. 39 of those not-new-construction had days on market of less than a week (29 in Albemarle, 10 in Charlottesville)
• Some market reports for you. Charlottesville, Albemarle, and the Charlottesville MSA.

Previous Posts

• 1 April – Real Estate Closings in the Charlottesville Area in the time of COVID-19
• 29 March – Thoughts on COVID-19 and Charlottesville’s Real Estate Market – #2
• 24 March – Thoughts on COVID-19 and Charlottesville’s Real Estate Market