Parts of the Fredericksburg real estate market showed an upward trend in number of homes sold in July, according to the latest Long & Foster Real Estate Market Minute report. Culpeper County had the largest jump in units sold with a 27% rise, followed by Spotsylvania County with a 6% increase. Median sale prices rose throughout the region with Caroline County showcasing the largest boost with a 10% increase. Inventory fell in most of the region with Caroline County exhibiting the biggest decline with a 27% fall, while Fredericksburg City had a 7% rise.
“There are several regions that show some positive numbers with units sold, including Fredericksburg,” said Long & Foster Real Estate President Larry “Boomer” Foster. With inventory continuing to contract, it should point toward units sold going down in some places, however the increases may be “a reflection of interest rates coming down so dramatically in July and into August.”
Foster pointed out that though inventory is so low, there is not a significant rise in home prices. This is due to the type of units that are being sold. “You’re seeing lower-priced, smaller attached homes, condos and vertical living selling more than bigger, higher-priced estate homes,” Foster said, which is why increases in median sale prices are in the low to middle single-digits.
The current state of the U.S. economy is on a lot of people’s minds, specifically the inverted yield curve. Foster emphasized that an inverted yield curve does not always lead to a recession, as many seem to believe, citing the dot-com boom as an example.
“We’re in an interesting time economically because most indicators in the U.S. economy say that it’s very strong,” Foster said. The reason we saw the yield curve invert was due to the large amount of money flowing into our 10-year treasuries, causing the yield on the bonds to lower and making the curve invert. Should a recession occur, it would be through different circumstances than the one in 2008.
Selling a home is different today than it was in the past. When it comes to buying a home “buyers don’t have the vision or inclination to do work to the home after they get into the home,” Foster said. Most buyers want move-in ready homes and don’t want to have to spend more money or time on renovations. It’s important to get a good real estate agent who will tell you what you need to do to get your home ready to be sold, he said.