Homes properly priced for the location and condition sold quickly, often within a week and at asking price or above. The average number of days on the market decreased from 131 in 1998 to 76 days in 1999 in Albemarle and in Charlottesville from 101 days in 1998 to just 44 days in 1999. At present all the factors are in place for the continuation of the current Sellers' market. Buyer demand is greater than the number of homes offered for sale. The economy in general continues to be strong and even if it slows slightly will not significantly effect this market if all other factors remain in place.
Demographics support continued demand for housing.
The Baby-Boomer group is entering their 50's, looking at the empty nest, still working and at the top of their earning capacity. Many of them want smaller or at least low maintenance homes and in increasing numbers are opting to sell the big family home in exchange for two homes, the permanent residence and a vacation home. The Baby Boomers' younger brothers and sisters, the Baby-Busters, are in the middle of their child raising years, climbing the corporate ladder and looking for a bigger family home. There is an inverse relationship between mortgage interest rates and home sale prices. As rates go down home prices go up because the buyer can afford to borrow more money for the same monthly payment and therefore pay more for a home.