2018 December Augusta County Market Report

AUGUSTA COUNTY MARKET REPORT December 2018

Presented by:

K L I N E RMe aAl tYy

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Staunton, Waynesboro, and Augusta County Units Sold

12 Month

12 Month

Months Supply

Year to Date

Residential Sales

Avg Sales Price

of Inventory

1,563

1,563

2.65 m

-2.13%

-2.13%

-0.68% $212,019 +7.07%

City of Staunton Units Sold

12 Month

12 Month

Months Supply

Year to Date

Residential Sales

Avg Sales Price

of Inventory

2.20 m -1.52%

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410

410

$174,812

+2.50%

+2.50%

+2.49%

City of Waynesboro Units Sold

12 Month

12 Month

Months Supply

Year to Date

Residential Sales

Avg Sales Price

of Inventory

316

316

-12.95%

-12.95% $198,851

2.12 m

+11.11%

+0.20%

Augusta County Units Sold

12 Month

12 Month

Months Supply

Year to Date

Residential Sales

Avg Sales Price

of Inventory

3.67 m -0.67%

837

837

$235,216

+0.36%

+0.36%

+7.17%

Residential Sales By Month Augusta County, Including Staunton & Waynesboro

160

2015

# of Units

2016 2017

140

2018

120

100

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80

What This Chart Shows: Residential home sales by month, since 2013. This chart helps show seasonal trends in home sales.

Bottom Line: With the exception of an increase from September to October, monthly sales declined the entire second half of 2018, ending with 99 sales in December. This weak second half of the year was largely caused by the lack of inventory of homes for sale, especially below $300,000 in price. We can expect this shortage to continue to affect sales into 2019.

Residential Properties Placed Under Contract Augusta County, Including Staunton & Waynesboro

# of Units

200

150

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100

What This Chart Shows: The number of residential properties on which Buyers and Sellers entered into contracts each month. This is an excellent indicator of future sales.

Bottom Line: The steady decline in new contracts since May's peak of 195 finally turned around in December as Buyers ratified contracts on 98 homes.

Generally, sales in the winter are largely affected by the weather. If we have a severe winter, we can expect contract activity to slow down again. If we have a mild winter, we would expect more Buyer activity, within the constraints of our current inventory.

Residential Sales, Past 12 Months Augusta County, Including Staunton & Waynesboro 1600

# of Units

1400

1200

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1000

What This Chart Shows: The past twelve months sales, for this month and each month since 2010. This is one of the best ways to see the true long term trend in the market.

Bottom Line: The 12-month sales trend has been flat or slightly declining since May, 2018, as declining monthly sales due to the shortage of homes for sale begins to impact the long-term trend. If the inventory situation does not improve in 2019 we can expect this trend to continue, along with rising prices as Buyers compete for the limited number of homes for sale.

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Average and Median Sold Price Augusta County, Including Staunton & Waynesboro $210000 $200000

Price

$190000 $180000 $170000 $160000

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$150000

What This Chart Shows: The long term trend in average and median sales prices for homes.

Bottom Line: During 2018 home prices rose rapidly in Augusta County, with an average sales price for the year of $212,019. This represents a 7% increase over 2017, which is a greater annual increase than is typical. The increase is understandable, however, when we consider the shortage of homes for sale. As with most commodities, when a large number of Buyers compete for a limited number of homes there will be upward pressure on prices.

We can expect this to continue in 2019 unless the inventory problem is relieved.

Average Sold Price Median Sold Price