Lisa Sturtevant, Chief Economist for the Virginia Association of Realtors, has recently given us an overview of various market conditions affected by low home appraisals. Can a low appraisal derail home buyers?
A home appraisal is an evaluation of a home’s market value based on comparable recent sales and sometimes recent listings in the neighborhood. Appraisals are required by a lender to protect both the lender and the buyer and to help to ensure that the buyer is not borrowing more than the home is worth. In hot housing markets, like the one we have been in for nearly a year, it can be challenging to accurately appraise the value of a home. Different appraisal values and below-offer appraisals can be confusing for home buyers and sellers and can sometimes prevent a successful transaction.
Different Methods, Different ValuesAn appraisal is typically conducted by a licensed real estate appraiser at the request of a lender or borrower. Appraisers generally use data on the prices of comparable homes sold in the last three or six months, or sometimes over a longer period. However, in fast-paced markets, where prices are rising rapidly, looking back at past home prices might not be a good indication of current values. It is important in this busy housing market that appraisers are not only using data on closed sales, but are also using data on pending sales and listings. Automated valuation models, or AVMs, have been a popular way for consumers to get an immediate assessment of their home’s value. These AVM values can also sometimes be used in refinance applications. AVMs collect data from multiple listings services, along with data from public records, to compare recent sales and list prices and generate a value for a particular home. There are differences in the methodologies in these AVMs, including the types of data used, how frequently the data are updated, and the number of comparables used in the estimate. These differences in data and methods can result in different home value estimates. (I plugged my home address into five different AVMs, and the difference in estimates was more than $100,000.) Because the housing market is so fast-moving, it is important that the data they use are updated very frequently. These public-facing AVMs are popular with consumers, but they can also provide misleading information and result in disappointed (or pleasantly surprised) homeowners when a licensed appraisal is produced.
Appraisals Below OfferIn this frenzied housing market, bidding wars and offers over list are common. When the home appraises at the contract price, the deal can go off without a hitch. However, appraisals below offer can throw up a roadblock to the purchase. While there are stories about buyers losing out due to a low appraisal, the data suggests that it is very uncommon for low appraisals to completely derail a transaction. According to Fannie Mae, an estimated 8% of appraisals came in below offer price in 2017. Zillow estimated that 10% of deals that fell through in 2018 did so because of a low appraisal. More recently, the National Association of REALTORS® reported in August 2020 that appraisal issues accounted for less than 1% of real estate transaction issues. Despite the fact that appraisal issues seem to be relatively uncommon, homebuyers that are worried about a home not appraising have increasingly been waiving appraisal contingencies in their offers. Nationally, Redfin estimated that about 20% of winning home offers last summer had waived the appraisal contingency. According to a survey of Virginia REALTORS®, in March 2021, 37% of REALTORS® said that it was very common for buyers to waive the appraisal contingency to make their offers more competitive. For some buyers, waiving the appraisal could be problematic down the road. For others, including those using an FHA or VA loan, an appraisal contingency is not an option.
Helping Buyers and Sellers When Appraisals Come in LowThere are several steps REALTORS® can recommend to buyers and sellers if an appraisal comes in lower than expected: REALTORS® should remind clients that AVMs are not meant to serve as a formal appraisal and that for most transactions, a lender will require an appraisal from a licensed real estate appraiser.
Appraisals should include data not only on recent sales, but should also take into account homes that have recently gone under contract and homes currently listed for sale. The fast-paced market means that home prices six or even three months ago are not necessarily a good indicator of current home values. Buyers, sellers, and lenders can request a review of the appraisal to see if there were any inaccuracies in the analysis.
If the appraisal comes in below an offer, buyers could have the option to increase the down payment to make up the difference or take some of the money set aside for a down payment to close the appraisal gap. It is also possible that a low appraisal is a sign that the offer price really is above the home’s true value and that the smartest thing for the buyer to do is to step away from the deal and move on to the next home. Having a REALTOR® who can provide sound advice on market conditions will be a tremendous value to buyers in this situation.*Information as of 07/21/21
Virginia Association of Realtors’ Chief Economist, Lisa Sturtevant, has released the following details about the overall market activity of real estate in the state.
Over the past 12 months, the housing market in Virginia—and really around the country—could only be described as hot. Or maybe frenzied. Perhaps on fire.
And while conditions are still very positive, there are signs that the housing market is cooling a bit in some places across the commonwealth. As conditions change, it is more important than ever to pay attention to local markets and factors that impact local demand and supply.
Why Might the Housing Market Be Cooling?
After a year of the housing market running on all cylinders, it is not surprising to see a downshift in market conditions. There are several reasons why the hyper competitive housing market will ease:
- Extremely low inventory and rising home prices have frustrated some would-be homebuyers who have decided to take a pause on their home search.
- More homeowners may be listing their homes to try to capitalize on the record home prices in most markets.
- With the opening up of the economy, individuals and families may be looking to spend their money on other things—including travel and celebrations—instead of a home purchase.
As housing market conditions ease, we would expect slightly slower sales activity, a bit more inventory, and a lengthening of average days on market. Home prices will continue to rise, though the pace of price growth should moderate slightly.
Where are Markets Cooling?
Markets with lower pending sales activity
Statewide, the number of pending sales dropped 5.5% between May and June. Pending sales are listings that have gone under contract in the month and is a leading indicator of where the closed sales numbers will be a month or two out. In a typical year, there tends to be a slowdown in pending sales between May and June; however, in some local markets, the drop off in new contract activity has been much more pronounced than it has been in the past.
Pending sales have slowed in markets across the state, including in most of Northern Virginia and Central Virginia. For example, in Rappahannock County, there were just eight pending sales in June 2021, down from 20 in May. In Caroline County, the number of pending sales in June 2021 was down by nearly 60% compared to a month earlier.
When the number of new contracts on homes slows, that is an indication of a slowdown in buyer activity, and it means that the number of closed sales will post lower in the months to come.
Markets with rising inventory
At the end of June, there was a total of 19,346 active listings statewide. Inventory is about 18% lower compared to the same time a year ago. However, the pace of inventory being drawn down has slowed and inventory levels have expanded month-to-month for four consecutive months. At the end of June, the number of active listings was up 7.5% compared to the end of May.
Inventory expanded in June in nearly all markets across the commonwealth. The main exceptions are the Northern Neck and Upper Peninsula, where inventory continues to decline month-to-month.
But inventory is up in most places in Virginia. In the City of Lexington, for example, there were 100 active listings on the market at the end of June, which is up 56% compared to May. In Warren County, the number of active listings increased by 52% between May and June.
Housing market conditions across Virginia are still strong, though there are signs of an easing of the housing market for many local markets. A cooling housing market is good for buyers, who will have more options and more time to make decisions. Even with a shifting market, inventory will remain relatively low and prices will continue to grow, albeit a bit more slowly. Over the next few months, pay close attention to local market conditions and trends, rather than national figures. All housing markets are local, and this is particularly true during a period of market transition.
Ask any real estate agent and they will tell you a similar sad story. The seller, whose home just hit the market, received an offer which was less than the list price, but felt secure that their home would sell quickly … so the seller countered for more. For whatever reason, the buyer did not continue to negotiate and moved on. After a week or two and no other offers, the seller instructed the listing agent to contact the buyer’s agent and say that the seller had reconsidered and would now accept their original offer.
However, the initial enthusiasm the buyer had was gone and they were looking elsewhere. This is a story that frequently happens across America, in all price ranges. The lesson to be learned is that sometimes the first offer is the best.
Consider the rationale, a home is fresh on the market,, and buyers (especially the ones who have lost bids on other homes) act quickly to hopefully avoid some of the competition. When an offer is not accepted, it voids the original offer and, in this case, the seller might make the buyer a counteroffer. The buyer can accept it, make a counteroffer, or walk away. Even if afterwards, the seller reconsiders and says that he will accept the terms of the original offer, the buyer is under no obligation to accept it. Alternatively, if the seller accepts the buyer’s original offer, a contract has been agreed upon based on the terms within. The house is sold and closed once any contingencies such as financing and/or inspections have been satisfied.
Think of an example where a seller countered for an additional $5,000. If he had accepted the original offer, the home would have been sold. In essence, he bought the home back from himself in hopes of making an extra $5,000. To put it in perspective, on a $350,000 home, the additional $5,000 would have been 1.4% of the value. As an investor, the risk involved in having to continue to own the property may not be justified by such a low rate of return. Having the property sold may actually provide peace of mind and convenience that far exceeds the $5,000.
When a seller receives an offer, they are faced with three options.
- (1)They can accept the offer and the house is sold considering the contingencies can be met.
- (2)The seller can reject the buyer’s offer outright and wait for an acceptable offer.
- (3)The seller can counteroffer the buyer with terms that are agreeable to the seller.
Many agents feel that if the offer is not acceptable, the counteroffer alternative presents a greater likelihood of negotiating to an acceptable agreement between the parties. Every situation is unique, but compromise has brought buyers and sellers to agreement in many situations. One of the valuable advantages sellers have is their agent’s experience and lack of emotional connection to the property. Your agent can provide objectivity and alternatives for you to consider in making your decisions.
Recent trends in home prices suggest that this past year has, indeed, been extraordinary. While price growth will remain strong throughout 2021 and into 2022, it is likely that the pace of home price appreciation will slow as demand softens, mortgage rates tick up, and inventory expands.
MLS #621099 $510,000
THE HOMEThis turnkey 10.87 acre horse farm has everything you need. Stepping into the charming Virginia farmhouse, a cozy living room with a Travertine tile floor greets you. To the right is a bedroom and bath that would also be perfect for an office space. The kitchen is open with recently replaced appliances, and there is a dining nook. Entering from the back door, you pass through the large mudroom to the kitchen. Upstairs, you will love the private bedroom suite with its walk-in closet, luxurious bathroom with a jacuzzi tub, two vanities, and a separate shower.
THE EQUESTRIAN FACILITIESThe center-aisle barn has eight 12×12 matted stalls with sliding windows and feed doors. It also has a hot and cold wash bay, and a tack room with a bathroom. Turn out is easy with 7 paddocks and 4 run-in sheds. Second access gates run through the middle of the paddocks. Water and electricity run to each paddock. If you want an arena, there is space with a bluestone base and arena lighting. A trail runs along the perimeter of the property. The land is beautiful and perfect for a trail ride. There is a lovely homesite at the rear of the property with mountain views. This cute property is a must see if you’re looking for a functional horse farm.
Below is a Google map. Click on the map to drag/explore the property and the surrounding areas in more detail.
Below is a map showing the approximate boundaries/shape of the 10.87 acre parcel.
People have commented on the current high prices of lumber and how that impacts new construction. Below are observations regarding lumber prices nationally as well as prices in Virginia at this time.
Nationally, new home construction has hit a 15-year high, fueled by strong housing demand. In May, home builders started construction on new homes at a pace of 1.57 million annually, a 3.6% increase over April and 50.3% above the level in May 2020.
The National Association of Realtors has recently shared information about the high prices of lumber. The price of framing lumber has plunged about 50% over the last seven weeks, offering up a hopeful sign that skyrocketing building costs would ease. However, builders say that the prices they pay have only declined by a fraction of that percentage. The disconnect in pricing has always existed in the lumber supply chain. It can still be a “long lag time” before the full price reductions come to builders, the National Association of Home Builders reports.
“As the price declines began grabbing headlines, the price of lumber packages quoted to builders held at record highs,” NAHB economist David Logan writes on the association’s blog, Eye on Housing. “This dynamic is primarily due to dealers’ inventory carrying costs and potentially large differences between the price at which inventory is bought and sold.”
The lumber supply chain consists of the following stages: from forest to sawmill to wholesaler to retailer to end user. The association offers up an explanatory reason prices are staying elevated at its Eye on Housing blog. Wholesalers and retailers have incentive to run through their existing inventory and recover what they paid for it—one of many factors that is currently keeping prices elevated for builders.
So, when will lower prices reach the builders and ultimately new-home buyers? The answer is unclear, but builders say more price drops in lumber may be needed. “Prices must fall for long enough to materially lower a supplier’s average costs after a run-up,” the association blog notes. “Depending on the rate and consistency of price decreases and whether prices have stabilized at the lower level, it may take a few weeks to a couple of months for builders to see price relief on the order initially reported in the futures or cash markets.”Meanwhile, new-home building prices for home buyers continue to rise. In May, the median price of a newly built home was 18% higher than a year ago, at $374,400.
Source: “Why Builder Lumber Prices Remain Higher Than Headlines Suggest,” National Association of Home Builders’ Eye on Housing blog (July 6, 2021)
IN VIRGINIAAccording to Dr. Lisa Sturtevant, Chief Economist for the Virginia Association of Realtors, new housing construction is up, and lumber prices are down. In Virginia, there were 3,125 permits issued for the construction of new residential units in May. Nearly 80% of permits were issued for the construction of single-family homes, while 20% were for units in multifamily buildings, including apartments and condominiums.
Like in many other places around the country, new home construction been on the rise in Virginia. In the first five months of 2021, there was a total of 17,685 permits issued for new housing construction in the state. By comparison, there were just 13,744 permits issued between January and May 2020. Year-to-date, the number of permits for new housing construction was up 28.7% compared to last year, with a 25.0% increase in single-family permits and a 36.3% increase in permits for multifamily housing units.
The cost of construction materials has been a major impediment to new construction. Lumber prices, in particular, surged to historically high levels during the COVID-19 pandemic. Back in March 2020, the futures price of lumber was $303 per thousand board feet. The cost more than quintupled over the past 14 months, reaching a high of $1,608 per thousand board feet in May 2021.
Lumber prices skyrocketed as a result of strong demand for new homes and a major interest in home renovations and DIY projects by people stuck at home. At the same time, supply chains have been disrupted by the pandemic and recession.
However, there is good news on the lumber costs issue. In June 2021, prices fell below $900 per thousand board foot of lumber, reflecting a drop of 44.2% from the recent peak. The drop in lumber prices is good news for builders. Some new residential projects that have been put on hold could start back up again as costs fall.
Lumber prices are falling now as more sawmills have been able to open up more fully and ramp up production. In addition, the opening up of the economy means that more people are back at the office and are spending less time on DIY projects around the house which has led to slower demand from homeowners.
Falling materials costs (e.g., lumber, concrete, steel, brick/masonry) are a good sign for the home building industry and for consumers looking for more choices. However, there are still challenges to home building. The shortage of construction workers, limited building-ready lots, and zoning regulations that limit homebuilding will continue to be challenges to building enough housing to meet demand.
Home prices in Virginia have been up by double-digit rates—or close to it—for ten consecutive months. According to Lisa Sturtevant, Chief Economist of the Virginia Association of Realtors, in May, the median home sales price in Virginia was $367,000 which was up 16.6% compared to the median sales price a year ago. The pace of sales growth this year has been much faster than in recent years, fueled by strong demand, favorable mortgage rates, and low inventory.
Strong Prices Across All Regions
There has been phenomenal price growth in all regions across Virginia. So far, for sales in 2021, the median statewide home price is 13.2% higher than it was during the same period in 2020. The strongest price growth in 2021 has been in some of the state’s smaller markets. For example, the year-to-date median price in the Eastern region is up 25.7%. In the Southside region, prices are 24.2% higher in 2021 compared to 2020.
There has been double-digit price growth in all areas of the commonwealth, including the state’s largest and highest-cost markets. The median price in Northern Virginia climbed 11.9% in the first five months of 2021. Prices are up 15.0% in the Central Virginia region and are 11.1% higher in the Hampton Roads region.
Prices Growing More than Twice as Fast as in Recent Years
In most markets, home prices are growing more than twice as fast as they have in more typical years. Between 2016 and 2021, for example, the median sales price statewide increased by 6.2% on an annual basis. Over the past eight years, since 2013, annual price growth averaged just 4.6% in Virginia.
Price Growth Will Likely Slow
Recent trends in home prices suggest that this past year has, indeed, been extraordinary. While price growth will remain strong throughout 2021 and into 2022, it is likely that the pace of home price appreciation will slow as demand softens, mortgage rates tick up, and inventory expands.
Virginia REALTORS® will release its economic and housing market forecasts later this year, at the 2021 Annual Convention. Several national organizations are forecasting above-average home price growth through 2021, although there is evidence of a slow down in appreciation in 2022. Only the Mortgage Bankers Association (MBA) is predicting a price drop in 2022. The vast majority of economists, however, expect prices to continue to rise.
As a prospective homeowner, it is likely that you already have a dream home in mind. You may already have a checklist of all the features that you need the house to have. The more elaborate your checklist, the more expensive your dream home will be.
If you want to buy a home in Charlottesville, VA, you might be wondering how much you’ll need to save up. It all depends on you, and the type of home that you’re looking at buying. There are quite a few things that could make the house you want to buy expensive. The more expensive it is, the more you will need to save.
This article will explain the cost of the average home in Charlottesville, VA and how much you might need to save to buy one.
What Are Property Values Like in Charlottesville, VA?
For those looking to buy a home in this city, they have to know how much they’d be likely to spend. The median price for a home is about $355,000. Of course, there will also be plenty of homes below and above this price.
For instance, over 50% of homes available in Charlottesville cost between $250,000 and $500,000. As prices go higher or lower than that range, the number of available homes decreases. But even if you are looking for seven figure homes, you will find a good selection in Charlottesville.
You’ll also find many three-bedroom homes here, followed by two-bedroom houses. If you need even more space, then four-bedroom houses make up 16% of homes in the city.
Since the year 2000, homes in this city have appreciated 134.5%. This is about 4% every year, on average. This is something to consider for those who are planning to buy a home for investment purposes. Over the last ten years alone, the appreciation rate has been about 40%. This is in the top 30% in the nation.
Speaking of investments, you may want to buy a home as a rental property. Charlottesville, VA, is a great location to consider if that is the case. The average rent goes for about $1,700 every month, and about 60% of residents are renters.
How Much Money Should I Save to Buy a Home in Charlottesville, VA?
If you have the cash to buy a home, it is always best to do it outright. This is not an option for most people, which is why they turn to their banks to finance the sale. By getting a mortgage, most people can become homeowners.
You will always need to pay a down payment on the house, even with a mortgage. The percentage of the total house price for the down payment varies. Many people use 20% as a rule of thumb. It can be lower than this, but it is unlikely to be higher. This makes it a good benchmark to use. If the house you decide to buy costs $500,000, you will have to have $100,000 saved up.
To always be on the safe side, ensure you have 20% of the total put aside. If you manage to get a smaller percentage on your down payment, that’s a definite bonus. You can put this extra cash to use if needed, especially if you might need to make some repairs.
What Factors Can Make a Home More Expensive in Charlottesville, VA?
When looking for a home in Charlottesville, VA, some things can make a house more expensive. You should have these in mind and keep your wallet at the ready. Especially if you want a five-bedroom estate or something like that!
Just because you can afford a house that large doesn’t mean that it is a good idea. Look at your monthly income and make sure that the mortgage won’t take too much of a hit on that. You are going to be paying it off for decades. You should go for a mortgage that is comfortable and won’t leave a serious dent each month.
Here are the factors which increase the value of a home:
- The size. This might be the most important consideration when looking for a home. The square footage of the property has a large effect on how much it will cost. This doesn’t refer to the house alone, but the entire lot. There are homes in Charlottesville, VA, that belong to golf communities or have farm space. All that extra land is sure to drive up the listing price. If this is what you want, make sure that you prepare for it. Homes like these are beautiful!
- The neighborhood. Charlottesville, VA, is a city and there are many neighborhoods within it. These areas can differ quite a bit and this can show on the average price for homes. Ivy is one of the more expensive neighborhoods in Charlottesville. In fact, it is one of the more expensive neighborhoods in the country. The median price for a home here is $790,000. This shows how important it is to select a neighborhood wisely.
- The year of construction. Simply put, the newer a home, the more expensive it is likely to be. The reason for this is rather straightforward. A lot of things in the house will be less likely to break down! Some of the most important parts of a home are the most expensive to fix. This includes the plumbing, wiring, and roof. If any of these get damaged, it will cost a lot of money to fix. A newer house is a sort of guarantee that these parts of the structure will last longer. Buying an older house for cheaper saves you some money you might need for fixes.
To summarize everything, you should aim for a house which you can afford comfortably. The amount of usable space, the area, and how old the house is, affect the price.
Whatever the price might be, have 20% of it on the ready. This will help avoid any disappointments you might encounter. Nobody wants to miss out on the house of their dreams.
Before you make any of these steps, you need to find the house of your dreams. If Charlottesville, VA, is your destination, Pam Dent, Realtor®, is the one. She’ll find you the best options to fit your needs. Call her at 434-960-0161 to get started now!
If you are an alum of the University of Virginia, you can probably skip this next lesson. But for anyone who is new to the Charlottesville area, it might help to explain a term you will hear frequently.
At Charlottesville’s University of Virginia, the students call themselves Wahoos. The term has been in place since 1893 so it is not a new phenomenon. According to Wikipedia, several factors converged for the Wahoos to claim that name. A school chant using the term was used as an Indian yell at Dartmouth College as early as 1878 but was abandoned by Dartmouth when political propriety rendered it obsolete. Around the 1890’s the Washington and Lee baseball fans referred to the University of Virginia fans as a bunch of rowdy Wahoos, and they used the Wahoowa chant as a form of mockery. However the UVa students instead adopted that nickname of Wahoos, and by the 1940’s the term had been shortened to calling themselves Hoos.
So now the students of UVa are the Wahoos. Or Hoos. You’ll see it and hear it all over town when you live here. The official name of the UVa sports teams is the Virginia Cavaliers, so there’s a lot of “cavalier” imagery here as well.
The chant might mystify newcomers. When you attend your first UVa sporting event, after the team scores you’ll hear the chant of “Wa-hoo-wah”! And it might be followed by The Good Old Song which is an alma mater tribute of UVa, and the lyrics include the Wahoowa chant. At first The Good Old Song (same tune as Auld Lang Syne) sounds very proper and sleepily “southern”. Fans stand and sway to the music as they sing. Dreamy slow verses of reminiscence and nostalgia. But soon that idyllic lilt is punctuated by loud rapid-fire cheers.
NOW SOLD BUT WE HAVE OTHERS
This magical 16.78 acre property is tucked into a landscape of wineries and breweries in the spectacular mountains of Nelson County. The beautiful 2-story home faces a picturesque vineyard and some of the best views in Virginia.
The scenic drive begins at the South Fork Rockfish River, passing by the stocked pond and award-winning vineyard to a home overlooking the valley with panoramic mountain views.
Easy living is achieved in this custom-built home with a first floor owner’s suite, great room with a stunning 2-story stone fireplace, gourmet kitchen, breakfast island, butler kitchen, and dining room. Upstairs, there are two additional bedrooms and ample storage space. The terrace level has a family room, office, laundry room, bathroom, and workshop. The views of the valley and mountains are magnificently captured throughout the home.
The deck, with its stunning views and hot tub, invites you to sip wine from your own award-winning vines maintained by Thatch Winery. This property has all the reward with none of the work. From the breathtaking views and craftsmanship of the house, to the dramatic beauty of the land, you will feel that you have found home.
Designed for comfort and sustainability, there is a geothermal heating and air system with four zones and a whole house generator. The 2-car garage is detached with a covered walkway to the house.
Our Virginia Association of Realtors has recently published the results of a survey conducted among their Realtor members. Below are the shared nuances of the Spring 2021 real estate market in Virginia.
Making An Offer
• Nearly every REALTOR® responding to this survey said that buyers are making offers over list price or including an escalation clause in their offer. Nearly 90% said offers over list price were “very common” and another 8.5% said they were “somewhat common.”
• Buyers in this market are facing stiff competition, and almost all are offering some type of concession in an attempt to make a successful offer.
• About 87% of Virginia REALTORS® said it was “very common” or “somewhat common” for buyers to waive the home inspection. Some REALTORS® commented that buyers were having an inspection done for information purposes only, but not making the offer contingent on the home inspection results.
• Nearly 70% of Virginia REALTORS® said that waiving appraisals has become “very common” or “somewhat common.” Many REALTORS® note that buyers are including a provision that they will pay a certain amount over any appraised value. Other REALTORS® have pointed out that this trend in waiving appraisals has put VA buyers at a disadvantage because they cannot opt out of an appraisal.
• The following tradeoffs are also “very common” or “somewhat common” in today’s market: increasing the earnest money deposit (79.2%), waiving the home sale contingency (66.2%), and offering a shorter loan contingency timeline (68.6%).
Buying A Home
• The fast-paced market and historically low inventory has forced buyers to re-evaluate their housing and neighborhood preferences, widen their search, and make tradeoffs on amenities. Nearly nine out of 10 Virginia REALTORS® members (87.7%) said that it is “very common” or “somewhat common” for home buyers to look outside of their preferred neighborhoods as they realize how few homes are available.
• Buyers in this market seem less likely to make tradeoffs on the size or style of the home they are looking for, but they are willing to consider homes that need major upgrades or updating.
• Only 34.2% of Virginia REALTORS® said that it was “very common” or “somewhat common” for buyers to settle for a townhome or condo instead of a single-family home.
• A little more than half (51.0%) said that it was “very common” or “somewhat common” for buyers to compromise on space or number of bedrooms.
• More than three quarters of Virginia REALTORS® (75.2%) said that buyers were willing to consider homes that need major upgrades or updating.
• As the inventory of existing homes shrinks, some buyers have turned their sights to new construction. About 56% of Virginia REALTORS® said that building a new home, rather than purchasing an existing home, had become “very common” or “somewhat common” among buyers.
• Finally, the tight market has discouraged many buyers. In fact, more than 70% of Virginia REALTORS® said that it is “very common” or “somewhat common” for buyers to decide to put off buying a home altogether in this market.
Contact your realtor to learn how these findings apply in your particular area and price range.