Charlottesville Area Association of Realtors releases 2023 First Quarter report

CHARLOTTESVILLE, Va. (WVIR) - The Charlottesville Area Association of Realtors says signs still point to a slow start to the year in the housing market.

Even though the market is slowing down, that doesn’t mean prices are dropping: CAAR says the average sale price is a little more than $400,000.

CAAR President S. Lisa Herndon says a 30-year fixed mortgage rate is more than 6.25%, and the federal government raised rates again Wednesday, May 3.

“It’s still not where we want it to be, but it’s definitely trending down and that’s good news,” Herndon said.

Herndon says while inventory in the market is increasing, homes are staying on the market longer.

“What that means for buyers who are still in the market - and there are plenty of buyers in the market - they are being more cautious about how they proceed. We are in less of a frenzy market as we were about six months to a year ago,” the president said.

Herndon says right now it is a sellers’ market: More than 680 homes were sold during the first quarter of 2023, and there was also a rise in building permits.

“It means that those homes will allow for more density in the area, and more density means that there is a potential for more affordability. Homeownership becomes more attainable for a lot of the individuals in the market right now,” Herndon said.

If more than six months of inventory comes, in, then the housing market will become a balanced market.

Do you have a story idea? Send us your news tip here.

Copyright 2023 WVIR. All rights reserved.