The Fredericksburg region exhibited an increase in median home sale prices in September, according to the latest Long & Foster Real Estate Market Minute Report. Fredericksburg City had the largest jump with a 37% incline, followed by Culpeper County which showed a 16% rise.
The number of homes sold varied from county to county with Fredericksburg displaying a 73% rise, while Caroline County had a 20% fall. Inventory dropped across the entire region with declines ranging from 26% in Stafford County to 2% in Fredericksburg City.
Evaluating the real estate market in September, Long & Foster Real Estate President Larry “Boomer” Foster said, “It’s a lot of the same story in many areas, including Fredericksburg. Home prices are appreciating and inventory continues to contract.”
Foster mentioned that days on market are starting to climb upwards, which is normal for this time of the year. As the fall market comes to a close Foster expects “days on market to increase and if the market corrects a little bit we’ll see some more home price appreciation.”
With interest rates shrinking to their lowest point of the month in early October, what people can afford is going to go up, which will lead to an increase in competition in the housing market. While this indicates that we will see home price appreciation throughout most markets, Foster said that “there’s no sign of hyper-appreciation, so we’re not at risk of a creating a bubble. What it does mean is that people have more buying power.”
First-time homebuyers should be aware that they’re “operating in a space where there’s a lot of demand and not a lot of inventory,” Foster cautions. In the entry-level space it’s a seller’s market, so homebuyers need to come in strong and well-represented. Since real estate is so hyperlocal, it’s important to have a quality Long & Foster real estate agent who will help write a strong offer and “talk consumers through what the demand is and what the competition is like.”