Charlottesville Area Real Estate Blog

"I'll keep my low rate, thanks" Pt 1

I’ve had countless conversations with homeowners that would love to move, but can’t stomach leaving behind their low interest rate of 3% and below. Mostly those who are doing so, need to because of a relocation, or have another life event/situation that requires it, or their financial situation allows for a higher price tag and the motivation is there to make it happen.

I would encourage home owners in this situation to rent the current home as a way to continue taking advantage of that low rate. This will most likely allow you to earn a nice flow of cash every month after all debt and expenses are paid. It could even offset the additional cost of the higher rate. I’ll get into this more in Pt 2. 

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March 2023 Market Report

New listings really shot up this month compared to last. 125 of these were new builds, or proposed to be built this year compared to 51 last month.

70% of the homes listed are now under contract/sold, which paints a clear picture that the market is still very strong. Especially seeing that sales prices are $5000 above list price.

Looking at the bar chart of sales prices it could appear that home values in 2023 are declining below 2022 levels. The data, however, only represents what homes are being listed on the market. It does not take into account the level of finishes, the size, location, etc….all of which strongly influence the price. Working with buyers that have been looking since 2022, I can tell you (& they would agree), prices/values do not feel lower at all.

Buyers
Be prepared...