Median sale prices rose modestly throughout the Fredericksburg region in May, according to the latest Long & Foster Real Estate Market Minute report. Caroline County had the largest increase with a 9% rise. The number of units sold varied throughout the region with Caroline County exhibiting a 30% increase while Fredericksburg City had an 18% decline. Inventory fell throughout most of the region with the exception of Culpeper County, which saw a 5% rise. 

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

“When looking at the Fredericksburg area it’s more of the same,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. “Units are shrinking from already depleted inventory levels, but interestingly enough you don’t see huge appreciations.” There are single-digit median sale price increases throughout the region. 

The real estate market is looking healthy though. “There’s a ton of competition and 30-year fixed rates are the lowest they’ve been in two years, so affordability is pretty strong,” Foster said. He noted that we seem to be involved in a later spring real estate season than normal, with the market holding strong and steady where it would have slowed down in the past. Due to the challenges faced in January and February, Foster expects June and July to remain high in terms of pending contracts.  

Home flipping has become increasingly popular with many, especially since it’s an appreciating marketplace. Foster speculates that it will continue to be a trend and that it should not be a problem unless there’s a market correction and prices start depreciating.  

Nowadays there’s a rise in iBuyers, which are companies that come in and offer consumers a quick option to sell their home without doing any typical preparations to list it. While iBuyers provide convenience, they typically offer 9% to 20% less than market value, Foster said. Since those iBuyers are so active, Foster believes this artificially inflates the number of homes that are being flipped since they’re buying a substantial amount of homes as venture capitalists. 

Foster addressed the rise in mortgage closing scams in which criminals contact homebuyers by email in an effort to have them wire their funds for closing costs and down payment to a fraudulent account. He said when any transaction involves a significant amount of money, consumers need to double-check with their agent or financial institution. “People just need to be aware and reach out to their agent directly if they are unsure about anything involving their transaction or receive email instructions to wire funds,” Foster said. The Consumer Financial Protection Bureau has more information about protecting yourself. 

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.