Weekly National Market Monitor

In reading this report there are encouraging trends for a return to a normal market. While inventory levels are still low they are growing. The substantial increases in home prices are due to a lack of supply and also skyrocketing commodity prices. However, those commodities are starting to stabilize and, as the report states, builders are starting to increase production although they have a ways to go before there is a glut of new homes in the marketplace. Another encouraging sign in evaluating how soft a landing we will have when real estate slows, more and more people are putting at least 20% down when buying a home which decreases the likelihood they will be underwater even as pricing may soften. But don't trust me... Look at the full report!

Just listed 3 BR / 3.5 BA townhouse in Avinity! Located minutes from Downtown and UVA! Click on the image for details.
Foreclosures Looming?

A concern as the pandemic winds down is a possible wave of foreclosures as forbearance agreements expire. This article from the Virginia Association of Realtors begs to differ... Default rates are low and some borrowers in forbearance are even still making payments on their home. Lenders also have programs in place to work with mortgagees who want to remain in their homes. Again, another indicator that even as the market slows down we don't appear in for another 2008-like crisis.
June Local Market Indicators

The key takeaway for me is that while housing prices continue to surge consumers should not believe this will last forever. Pending home sales have begun to slow (except for in the city which remains hot) and while inventory is still low more and more listings are coming on the market. I swear one of these months I will be proven correct! Eventually! In all seriousness it does seem like a gradual slowdown to a more normalized market which is the best we can hope for.
Just listed 22 acres in Crozet! It's a terrific location that spills out directly onto Rt 250 but is set back half a mile from the road and is only one mile away from the 64 exit. Click on the image for details.
Michael Ball
PO Box 462, Crozet, VA 22932

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Michael Ball · PO Box 462 · Crozet, VA 22932-0462 · USA