Recently, I was talking with someone regarding the oversupply of condominiums in the Blacksburg market, and I was asked what I thought it’d take for condos to begin selling again. I tried to be as honest as possible in my answer, saying that two things needed to happen in order for the condo market in Blacksburg to begin picking up again:
Tuesday I reported the median sales prices and activity levels of single-family homes through September YTD, and based on the 65% increase in visitors to that post it seems people are really interested in what’s happening in the New River Valley real estate market right now. But that only looked at detached homes … a good portion of our market every year includes townhomes and condominiums, so here’s a look at those sales figures for the YTD. Remember … this is just looking at the median sales prices for 24060, 24073 and 24141 area codes. Quite a different look from detached homes, which showed relatively stable pricing throughout the year, and a significant volume decrease, since the expiration of the homebuyer credit on June 30th. The condo and townhome product has long been a driving force in the New River Valley real estate market. With a constant supply of “kiddie condos” and townhomes being purchased by Radford University and Virginia Tech parents for their college-aged kid, alumni looking to relive their glory in their alma mater’s backyard, or investors looking to capitalize on a constant turnover of ready renters, townhouses and condos have been a large part of the sold inventory every year. Over the last 18 months however, financing for condos has become difficult to come by, and economic uncertainty has kept many from purchasing second homes and investment properties. You can see that reflected in the graphs above, with values moving up or down as much as 30% month over month, and the number of sales dropping – sharply – after the credit expiration of June 30th. The numbers don’t lie. Townhomes and condos are difficult to sell in the New River Valley right now, and they’re a good deal for buyers with money to put down (25% or more). It’s as simple – or complicated – as that.