The number of homes sold took an upward jump in the Winchester region in July, according to the Long & Foster Real Estate Market Minute report. Winchester City had the largest increase with a 61% rise, followed by Frederick County which exhibited a 24% rise. Median sale prices also climbed up throughout most of the region, with the exception of Warren County which had a 1% decline. Inventory took a minor dip all over, with declines ranging from 13% in Winchester City to 5% in Warren County.
“There are several regions that show some positive numbers with units sold, including Winchester,” 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 increase 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 not home price appreciation as some speculate, but rather the result of the type of inventory that’s selling. “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 how an inverted yield curve does not always lead to a recession, as many seem to believe, citing the dot-com boom as an example.
The current economic climate is very strong in the U.S., with unemployment rates and interest rates being low. If a recession is forthcoming it would not be because of what led to past recessions, Foster said. The last recession in 2008 was caused by mortgage-backed securities that gave out loans to people who would not be able to pay them back. With current regulations from banks and mortgage companies this would not happen in the future.
Consumers looking to sell their home should be aware of current market conditions. Foster recommends “finding a real estate agent that will aggressively find you a home whether it’s on the market or not.” Putting a contingency in the home sale contract is also an option, making the sale of the home contingent on you finding a home to buy first. This may make the contract more unattractive, however it has become a popular decision with many home sellers.