Market Report

Charlottesville, VA

Short-term forecast

Underperform

House price changes in the Charlottesville, VA metro market are forecasted to underperform the national market in the short term. Based on the housing market vitality metric, the market ranks 338 among 402 US metro housing markets. Currently, the metro market is underperforming the national market and performance is forecasted to improve.

MARKET RANK
Feb 2020 Feb 2019
338 / 402 325 / 402
SITUATION
Feb 2020 Feb 2019
Underperforming Underperforming
OUTLOOK
Feb 2020 Feb 2019
Positive Positive

Forecasted Performance

The local housing market vitality is forecasted to improve and performance will be in the middle fifty of all metro markets. Improvements in local economy conditions boost the forecasted performance and changes in national economy conditions drag down the forecast.

Trailing 12-month Performance

Over the last twelve months, local housing market vitality deteriorated and performance is currently in the bottom quartile of all metro markets. Improvements in national economy and new construction conditions lifted trailing 12-month performance and changes in local economy conditions dragged down performance.

Industry Specialization

The local economy is specialized in: Information, Construction, and Pro Bus svcs. Manufacturing, Other svcs, and Trade Trans Util industry sectors are less important to the local economy. Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the local economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Industry Composition

Accounting for 56% of the local business economy, the top three industry sectors are: Trade Trans Util, Pro Bus svcs, and Fncl activities. These industry sectors create the bulk of the jobs and earnings that power the local economy. Longer-term trends that impact these sectors will have an enduring effect on the local economy.

Market Demographics

Compared to the US, Charlottesville, VA metro market has a lower incidence of poverty and the local population has more purchasing power. There are more high school graduates and a larger proportion of the population is college educated. Lastly, the local population is less diverse than the overall US population. A Demographics Index value greater than 100 corresponds to the factor being more intense in the local market versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.