The Federal Reserve dropped the Federal Funds Rate (the rate charged by banks for overnight loans) by 50 basis points (1/2%) on Wednesday to 1%. This might seem like good news to would-be home buyers of Charlottesville real estate, but buyers I work with are surprised when I tell them the opposite is true. I’m often met with a look of disbelief and a refrain that goes something like, “I just heard about a big interest rate cut in the news – how can rates be that high?”
As I stated in my previous post, I told you where to find those desirable homegrown fresh vegetables in the downtown City Market. Many Charlottesville home buyers are actually looking toward downtown for all the right reasons. There are lots of things going on in downtown Charlottesville, from live arts and live music to fine cuisine, and small shops. Wouldn’t it be convenient to live in Downtown Charlottesville especially if you could walk to work? Think of all the money you could save on gas! There are a number of lovely condos available just steps away from Downtown Charlottesville.
What do real estate in Charlottesville – real estate in Albemarle County – real estate in Wintergreen all have in common? A correcting marketplace with downward pressure on selling prices. The marketplace has been transitioning for about the last 24 months coming off of a strong sellers market morphing into what is now a strong buyers market. If you are a buyer of Charlottesville real estate or Wintergreen real estate or Albemarle County real estate, there has not been a better time to purchase since the late 90s into 2000. Combine the currently repressed market with historically low mortgage interest rates, and it is an undeniably compelling time to be a buyer.
So, why isn’t everyone buying… it gets back to that word I used earlier, “repressed”. Nothing makes for better news coverage (and advertising sales) than fear and sensationalism and our mass media is leading the charge with ubiquitous coverage of every negative angle they can find in the credit and housing markets. Now, I’m not saying the issues aren’t real – what I am saying is that the constant, unrelentingly, and one-sided news coverage has paralyzed many who would otherwise be smart buyers picking up great properties at very reasonable prices and with very favorable interest rates.
If you can’t afford to be in the market, then don’t be; if you can afford to be in the market, you should be aggressively searching the Charlottesville real estate marketplace as we are in a period right now where the very best properties sell first for the least amount of money. What comes later (and it’s always too late once all the news stories are about the recovery in the marketplace) is less desirable properties selling for more money.
Has all the “negative noise” from the national media caused you to second guess jumping into the Charlottesville real estate market? Let me know your comments.
Until my next post,
Brian
Your Charlottesville Real Estate Resource
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