Report: Central Virginia home prices are swelling

FILE(Source: Teresa J. Cleveland / U.S. Air Force)
Published: May. 8, 2022 at 8:51 PM EDT
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CHARLOTTESVILLE, Va. (WVIR) - It’s a seller’s market in Central Virginia, according to the Charlottesville Area Association of Realtors and the Free Enterprise Forum.

The Free Enterprise Forum points out there are some swelling home prices in Central Virginia. President of the forum, Neil Williamson draws comparisons from this time last year to now. Ultimately, it all comes down to supply and demand.

“There is a lack of supply of inventory in all the localities. You could ask anyone who tried to purchase a home in the last 12 months,” WIilliamson said.

The Free Enterprise Forum is a public policy organization. Williamson keeps an eye on the CAAR reports. According to this year’s quarter 1 report, home prices in Fluvanna are up 24%, Louisa 22%, and Albemarle County 11%, from quarter one last year.

“The inventory is about half of what it was two years ago in Albemarle County and I do believe that is dramatically impacting housing affordability, as well as the products that are available for folks to buy,” Williamson said.

He says unfortunately, there is no quick fix to the increasing rates.

“There’s been a real challenge to get projects going and approved and out of the ground. The building permit process in some of the localities has been challenged. This is an administrative review and it’s taking in some cases three or four months to get a building permit,” Williamson said.

In other areas, it takes just a few days, though that has slowed down in Central Virginia since the pandemic.

“The time and money it takes to get a multi-unit development out of the ground, and the infrastructure cost, is enormous,” Williamson said.

Williamson says the bright side of these costs is that we live in a great community where people want to live. He says if you want to help change the rising costs you can get involved with your locality’s comprehensive plan.

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