The numbers are out for the 2012 Charlottesville Real Estate Market and it is great to see a bit of an upswing. It is not huge, but it is certainly better than down.
So, what are we looking at in 2013?
Many people, across the nation, will simply say sales and inventory. While these are important to watch, they are lagging indicators. Let’s look just a little deeper.
To be more specific – tax increases. When taxes rise, buyers will have less to spend on housing (down payment and monthly payments). Do not be fooled by the rhetoric you hear and read, think logically. Unlike Washington, households can not just raise their personal Debt Ceiling and have future generations pay for their homes. Households have budgets and they mean something.
Or should I say unemployment. This is directly connected to the above discussion about taxes. If taxes go up on businesses, they will figure a way to cut costs (need I say more). We really need to see unemployment decrease across the nation. This will build confidence, put more money in circulation and truely stabilize the housing market.
Home Ownership mentality
This is something that is rarely discussed. When buyers feel it makes better sense to rent vs buy, this has a direct impact on our local market. In some cases, we actually are seeing where it is cheaper to now own vs rent in our local market. This should help with our local 2013 market.
Everyone is aware that we are at historic lows in Interest Rates. When these rates tick up (and they will) it will have a direct impact on the Charlottesville real estate market.
Mortgage delinquencies and Foreclosures
In 2012, Mortgage delinquencies fell. This is a good sign and something that is worth watching. Also in 2012 Foreclosures were selling at a discount. We will likely see less foreclosures in 2013 and this would be a very good sign. Both of these are key to the overall health of the market.