The average price of a home in Augusta County is up by 6% compared to a year ago. Properties in the county are currently selling for $280,000, according to Long and Foster. They’re also flying off the market quickly, so just what is the current state of Augusta County’s property market and what does the future hold?
Fewer homes on the market
As of September this year, there were just 53 properties up for sale in Augusta County. Compared to the same time last year, this is a decrease of almost 30%. When there are fewer homes on the market, people start to panic and act in haste. This explains why it’s taking an average of just 22 days for properties in the area to sell. In 2020, the majority of homes spent 49 days on the market before a deal was done with a buyer. This type of behavior also pushes house prices up. Locals feel the need to act quickly to ensure they get the house that they want and this means they’re less likely to negotiate a lower cost.
Wavering feelings
Just 29% of Americans think that now is a good time to buy property. These feelings are demonstrated in Augusta County too. In September of this year, just 50 new properties went up for sale. The previous year, this number was almost 30% higher at 70. This shows that many homeowners in the county are holding off on selling, knowing that people don’t want to buy. At the same time, this is causing a supply and demand issue that is pushing prices up. The 29% of people that do want to buy have a smaller inventory to choose from. Realtors and sellers know this, so put properties on the market for prices as high as possible. Sales prices get pushed up further when more than one buyer starts bidding against each other to win the house.
Offering more money
Over the past year a trend has started in Virginia where buyers continually offer more than the asking price. In July, in the West End in Richmond, one property sold for $750,000 more than the asking price. Homes aren’t selling for quite as much in Augusta County, but the pattern continues. September’s figures show that the sale price to list price ratio was 100.4%.
As a buyer, having to pay more than expected, may affect the home loan you’ve arranged. Ryan Kelley states that ‘Our ability to use the newest mortgage loan products and underwrite our own files allows us to approve loans that our competitors can’t.’ So, there’s every chance that buyers can afford a slightly larger loan than they first thought.
What the future holds
It’s quite normal for house sales to drop at this time of year, so no one is worried at the moment. In fact, realtors in the area have said they’re pleased that things are returning to normal. The number of houses being added to the market is slowly growing in other parts of Virginia anyway, such as in the Southwest and in Central locations. It’s expected that the rest of the state, including Augusta County, will follow suit soon. House prices are expected to keep on climbing too, meaning sellers will continue to be the ones in control of the market.
The current state of Augusta County’s property market is interesting. Prices are going up and up even though demand has slowed. Only time will tell whether things will turn around, but it certainly looks like prices will rise more first.
Story by Gina Watson
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