The homebuyer’s tax credit continues to show some positive effects on sales throughout Central Virginia. The latest benefactor seems to be attached homes in Albemarle County. (In this area, attached tends to refer to town homes and row homes) Sales of attached homes in Albemarle County are up 20% year-over-year…quite a jump considering many people predicted attached homes would suffer almost as much as condominiums.
From Aug 2008 to July 2009, here are the quick stats of attached home sales in Albemarle County:
Total Sales: 255
Median Price: $240,000
Months of Inventory: 8.84
Check out the statistics from Aug 2009 to July 2010:
Total Sales: 305 (up 20.3%)
Median Price: $231,490 (down 3.5%)
Months of Inventory: 5.51 (down over 37%)
Pretty amazing real estate stats…we’re surprised on one hand because many of us predicted (as has been the case over time) that single family detached homes sell quicker and hold their values more. On the other hand, attached homes are less expensive than comparable single family homes…and since price is a market driver AND the tax credit was geared towards first time homebuyers, attached housing in Central Virginia has benefitted.
We’re not at a point where we feel confident that values will be increasing anytime soon…but the fact that there are only 5.51 months of inventory in this category is a positive sign for the marketplace. We do think the months of inventory will rise…purely based on the fact that we’re seeing fewer buyers in the marketplace. As we have discussed before, home buyers of single family homes, attached homes, and condominiums throughout the Charlottesville region rushed to make their home purchases prior to the tax credit expiration. That rush didn’t necessarily ‘create’ a lot of new buyers…but instead moved up a lot of buying timelines to the first half of the year.
We’re definitely seeing the effects of a slower market now. For example, in July of 2009, there were 49 attached home sales in Albemarle County. In July 2010, there were just 18. That’s a mighty hefty drop. So, we’ll keep an eye on the market to see how much the second half of 2010 slows from the first half.
