Home sales took an upward turn throughout most of the Fredericksburg region in February, according to the latest Long & Foster Real Estate Market Minute Report. Spotsylvania County had a 20% increase, while Fredericksburg City displayed a 14% decline. 

Home sale prices showed some increases, with Fredericksburg City having the largest increase with a 29% rise, followed by Spotsylvania County with a 12% incline. Inventory fell all over the region with decreases ranging from 21% in Fredericksburg City to 32% in Stafford County. 

Long & Foster Real Estate’s Market Minute report for the Fredericksburg region includes Fredericksburg City and Spotsylvania, Stafford, Culpeper and Caroline counties.

“For the most part you’re looking at moderate price appreciation and continuing inventory challenges,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. While inventory continues to shrink there is still plenty of demand in most price-points. 

The market is being affected in various ways currently due to world events, such as the coronavirus and the stock market fluctuations. However, Foster believes it is affecting the real estate market positively. “Investors are going to get their money out of equities and bonds and put it into real estate because that’s an appreciating asset,” he explained. 

The main thing Foster thinks may be affected is consumer confidence. As of February, consumer confidence numbers were the highest in years, however current events may cause them to drop. There is no fear of a housing crisis though since home prices will continue to appreciate over time. In a normal expanding market, median home prices are expected to go up by 5% per year, in a recessionary market home prices still appreciate by 4%. It’s a tangible asset, unlike stocks and bonds, so it can provide consumers with multiple lines of revenue, from potential rent income to tax advantages. 

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.