Archives of my subscription-only monthly notes. This is for February 2021. Interested in not waiting a few weeks to read it, and want it straight to your email? Subscribe here. For the re-posts here on the blog, I don’t do much formatting/changing as I’m more concerned about simply having the content here forever (because I own the blog, and I don’t own Substack. If you’re interested, these are all the monthly notes I have written.
The weather has been so icy and snowy that I have no outdoor riding pictures. And no one wants to see pictures from the trainer.
The Charlottesville – Albemarle market in a nutshell.
Keep in mind that this is for a large part of the market, and your micro market will vary.
- I showed three houses last weekend; those sellers received 8, 11, 8 offers respectively.
- A buyer client didn’t get to see a house that was supposed to be available for showings in three days because a buyer made an offer (IMHO, unwisely) sight unseen, over asking, waiving the inspection contingency.
- We went from low inventory and high demand to very low inventory and very high demand.
- Paraphrasing one of my clients who made an offer more than 10% over asking (and still lost because of an intangible), “Where is the line between a competitive offer and an absurd one?”
- This podcast we did for Nest’s Sweat the Details, is a must-listen to learn more about the housing crisis. (This is one of the best ones we’ve done)
From a personal/professional note – it is exhausting to write offers for buyers who desperately want to buy homes, who should be able to afford homes, only to be one of a half dozen offers. This market will shift, and in about 18 months I’ll be able to accurately answer the questions, “How’s the 2021 market?”
Keep in mind that people continue to move to the Charlottesville area and we’re not yet able to build sufficient homes to accommodate that demand. New home prices are through the roof due to material and labor costs, as well as simple supply and demand. Thus, those homes under $500K will continue to appreciate (probably) so long as the economy stays strong, and interest rates are low.
Below are two houses that recently under contract; the first probably went for closer to $500K and the second went for over asking.
I asked an agent I respect greatly who’s been around for a lot longer than I have if he’s seen anything like this, and he said, “no; never like this.” I had an agent ask me if 2005-2006 was like this, and my answer was that this market is exponentially worse (from a buyer’s perspective) than then.