Jan 201922

Home Prices Rise as Sales Slow in Much of Fredericksburg in December

Jan 201922

Home Prices Rise as Sales Slow in Much of Fredericksburg in December

Market Minute Logo 2018 smallCHANTILLY, Va., Jan22, 2018 – The Fredericksburg real estate market showed an upward trend in median sale prices throughout the region, according to the latest Long & Foster Real Estate Market Minute report. Sale price increases ranged from 17 percent in Fredericksburg City to a 2 percent increase in Stafford County. Inventory also increased minus Spotsylvania County which saw a 4 percent decrease and Fredericksburg City which remained flat. The numbers of units sold were down in much of the region, except in Fredericksburg City where it rose by 14 percent and Culpepper County which saw no change year-over-year.  

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

 Fredericksburg Market Minute December 2018

“In most places, inventory is still contracting at a really fast clip,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. “Price appreciation is moderate to flat, but it’s still hyperlocal – some neighborhoods are their own little market where there’s a melting pot of different things happening. I don’t think there’s any doubt this year that you’ll see a softening in higher-priced homes.”

While there’s a consensus in the industry that mortgage interest rates will be climbing in 2019, for the last few weeks they have been down. Foster attributes that to volatility in the stock market and in the world economy.

“Foreign and domestic investors are putting a ton of money into the 10-year treasury bonds causing the yield on the 10-year treasury bonds to go down, which in turn causes the 30-year fixed rates to go down,” Foster said. “If the government shutdown, Brexit talk and trade wars with China continue, we’ll see a lot of people fleeing to the security of bonds, which will keep interest rates artificially low.”

Consumer sentiment about the economy remains high despite the volatility of the markets. One of the biggest indicators of a strong real estate market is high consumer sentiment, because when people are confident they buy and sell homes, Foster said.

“The complexities of our market conditions are what make it crucial to work with a professional, knowledgeable real estate professional,” Foster said. “While the bigger trends help us understand the health of the market, home buyers and sellers can benefit most from an expert with knowledge of individual neighborhoods, like those at Long & Foster Real Estate.”

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.