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Old 09-25-2016, 06:28 PM
 
69 posts, read 106,008 times
Reputation: 50

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915 Rockland Ave, Charlottesville, VA 22902 | MLS #550910 | Zillow

And it only get worse - If you want a 3 or 4 bedroom house with 2 full baths and 1800-2400 sq ft of space - you know, enough room to raise a family and be anywhere within spitting distance of the city? - It's gonna cost you at least $500k
For example:
http://www.zillow.com/homes/for_sale...t/14_zm/0_mmm/

This is really close to the university - but is is worth a HALF of a MILLION dollars? Not in my book.
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Old 09-25-2016, 09:08 PM
 
848 posts, read 1,635,713 times
Reputation: 364
This is a real problem in Cville. Some think it is great that RE sells for so much, but it has left the area with little affordable housing. Sorry, but why live somewhere that you pay that much for something so unattractive (yeah, there are some upgrades, but lipstick on a pig...well you know). Now we see why there are living wage protests in Cville; one can't find a job that pays enough to afford the mortgage on a crap house in a dumpy neighborhood. Anyone who looks can see that there is no way this tiny cottage increased in value by 160,000 in 5 months- upgrades just aren't worth that much. You can look at the link on Zillow, though. There are less expensive houses of similar size in equally crappy locations. Hopefully some flipper will hang on to this for a while.
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Old 09-26-2016, 06:03 AM
 
22 posts, read 18,713 times
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People are willing to pay that much so they don't have to live in a place like Lynchburg.
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Old 09-26-2016, 06:17 AM
 
69 posts, read 106,008 times
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I somewhat think there might be a shadow market here and an aspirational one. I think part of the problem is that inventory is relatively low. In a city of 50,000+ I don't think it is unreasonable to have 100 people looking for houses and when really only 5-10 houses barely fit your criterion of acceptability you are going to get a push up in prices. Also people think they are sitting on a goldmine, or they are told they are. A lot of houses haven't been on the market since the 80's when they were bought for like $75k and that causes distortions as well.
Someone told me once that people put the house up for a sky high price and then change realtors 8 times and eventually lower the price to the 'proper' price. But I still think it is too high. I don't think it is asking too much that for a quarter of a million dollar home to have a dishwasher and a driveway.
I haven't seen yet what sets Cville off from other areas that justifies these prices [other than it not being Lynchburg - good one]. MOMA isn't here. You don't even have a minor league baseball team. I guess there are some fancy high priced restaurants but so far that is all I see. If I thought I was getting something - like what people get in places like NYC or LA or SF - then I could marginally justify the pricing.
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Old 09-26-2016, 07:02 AM
 
Location: Roanoke VA
65 posts, read 50,265 times
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With the lowest interest rates ever and the low inventory of homes, could it mean this is a trend? I am perplexed at why more
home building is not picking up in many areas of the state. Also, millenials are not interested in purchasing overpriced real estate
and seniors are "reverse mortgaging" their homes to pay bills so no inheritance is coming in future years.
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Old 09-26-2016, 07:21 AM
 
69 posts, read 106,008 times
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RKE: From what I understand Cville makes it very challenging for home builders to build [environmental impact studies, etc, etc] - not that that is a horrible thing, but is more regualtions which stifles development. If you go up the Seminole Trail into the stores you see young - middle aged professionals. I think up there is where the bulk of the McMansions are being built, just outside of town where the regulations aren't as stringent. There is a new development of mod-ish looking town homes near Belmont - but as usual they START in the upper 300's as per their signage. So all in they probably are 1200-1400 sq ft 3 br 2 ba town houses that are going for $450k after all the add ons. God knows what the HOA fees are...
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Old 09-26-2016, 07:25 AM
 
69 posts, read 106,008 times
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One of my major concerns is that this is a bubble and these prices cannot be sustained. I see houses that were sold 4-5 years ago for $175k or so now being sold for $260-80k with no updates or any sign of improvement. Do I think that in another 4-5 years these same 1000 sqft homes are going to be going for $350-60k?? I do not. Especially when interest rates rise as that tends to put pressure on home prices. I am sitting on a lot of cash now hoping to buy in [somewhere probably not here] - after there is a bit of downward pressure. Unless I can find my dream home/location where I can just buy it outright and then I really don't care too much about what the market does as we are settled and happy for the next 20 years or so.
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Old 09-27-2016, 07:30 PM
 
848 posts, read 1,635,713 times
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Quote:
Originally Posted by MovingFromALX View Post
People are willing to pay that much so they don't have to live in a place like Lynchburg.
I assume that explains all the homeless and panhandlers in Cville? All the poor folks in the Burg give up house and home to panhandle, and be able to have the Cville experience? All things being equal, you would have a higher standard of living in Lynchburg with equal pay and the pay scales for most jobs are comparable. The reality is that if you really want high living and great cultural experiences, both Lynchburg and Cville pale in comparison to Richmond and DC. The one really great thing about Cville is the job market; there is always a job available as a cashier in the retail sector!

Last edited by sregorat3; 09-27-2016 at 07:46 PM..
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Old 09-27-2016, 07:43 PM
 
848 posts, read 1,635,713 times
Reputation: 364
Quote:
Originally Posted by charles1169 View Post
I somewhat think there might be a shadow market here and an aspirational one. I think part of the problem is that inventory is relatively low. In a city of 50,000+ I don't think it is unreasonable to have 100 people looking for houses and when really only 5-10 houses barely fit your criterion of acceptability you are going to get a push up in prices. Also people think they are sitting on a goldmine, or they are told they are. A lot of houses haven't been on the market since the 80's when they were bought for like $75k and that causes distortions as well.
Someone told me once that people put the house up for a sky high price and then change realtors 8 times and eventually lower the price to the 'proper' price. But I still think it is too high. I don't think it is asking too much that for a quarter of a million dollar home to have a dishwasher and a driveway.
I haven't seen yet what sets Cville off from other areas that justifies these prices [other than it not being Lynchburg - good one]. MOMA isn't here. You don't even have a minor league baseball team. I guess there are some fancy high priced restaurants but so far that is all I see. If I thought I was getting something - like what people get in places like NYC or LA or SF - then I could marginally justify the pricing.
If you have to have the Cville zip, you have to pay for it. If places like Lynchburg aren't good enough, don't complain. There are plenty of folks like MovingfromALX that have the cash to buy and feel like they are getting a real bargain. One thing you don't factor in is the density- you can only squeeze so much into the small footprint that is Charlottesville so if the market will bear it, the prices will remain high. The typical doctor in Lynchburg, Roanoke or Harrisonburg will earn close to what her counterpart in Cville will and pay half the price for a nicer house in a nicer neighborhood; not a bad option, in my book.
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Old 09-28-2016, 07:26 AM
 
91 posts, read 117,906 times
Reputation: 141
Ultimately, wealthy, cosmopolitan people want to live in Charlottesville and Albemarle. That's going to drive up housing prices.

I'm a real estate developer who has done projects all over Virginia. The cause of these rising prices is that people desperately want to live in Charlottesville. In the last 3 years the Charlottesville/Albemarle area has seen an influx of over 300 7 figure net wealth households. It's also the fastest growing venture capital market in the entire country. When that kind of money pours into an area, housing prices are going to rise quickly. The Richmond Federal Reserve stats showed it was the hottest housing market in the Mid-Atlantic over the summer.

Charlottesville is just part of what we're seeing all over the country. Once a critical mass of cosmopolitan elites lives in a city, that mass becomes a magnet for other elites. They come in and can't find upper class housing, so they start to go down the chain of housing and push up prices. Go look at places like Boulder or Chapel Hill or Austin...all college towns with major elite universities with good tech sectors like Cville.....you don't find middle class housing any longer in those towns. Charlottesville, which is smaller, is following the same pattern. As tech companies like Willow Tree, Vivid Cortex, Scitent, etc. keep expanding in Cville, the housing prices will get higher. It's also worth noting that Cville has become a hub of telecommuters from DC. There are a lot of people in that area that "work" in DC/NoVa, but telecommute 3 or 4 days a week, and drive up/take the train to the office for one or two days a week.

If you're really into real estate prices in that area of the state, go look at the Charlottesville effect on Staunton. 10 years ago, a nice house in Staunton was half to 40% of its counterpart in Cville. Now it's about 60%-65% of its counterpart in Cville. That's b/c of Cville spillover driving up those nicer neighborhood prices in Staunton.
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