2018 is half way over and we are excited to release the 2018 Fredericksburg Mid-Year Market Report. Understanding what’s going on in the market allows us to equip our clients to make confident, informed decisions. It also gives us an idea of what the future holds.
Our local real estate market has continued to show strength, but be prepared for a market correction. The common theme among the Fredericksburg and Greater Piedmont areas is lack of inventory, higher prices, and rising interest rates.
QUICK TAKEAWAYS
- Sellers have enjoyed higher sales prices, as we’ve seen an average increase of 9% over the last 2 years. Many sellers are walking away from the closing table with money in their pockets. With low inventory, buyers are feeling the competition, offering almost full list price to sellers in hopes that they win the home.
- The Fed has raised its interest rate, resulting in almost a full percentage point increase since January 2018. As a result of the interest rate increase, buyers are qualifying for less money, adding more competition in the entry level of the real estate market.
- What can we expect for the rest of 2018? All indications point to finishing the year with an interest rate hovering around 4.7%. This is still a phenomenal interest rate, historically speaking, but higher than what consumers have experienced in recent years.
- We will also see the federal government continue to deregulate lending. This will cause greater risk for lenders. Greater risk for lenders results in higher interest rates for buyers. As we see interest rates rise, we will see prices level out.
- The mid-term elections will also indicate how consumer confidence is tracking nationwide. The more confident consumers are, the more likely they will venture into home ownership or upgrading their current housing situation.
Be sure to check out the full 2018 Fredericksburg Mid-Year Market Report here for more info on how our local market has performed so far this year.
Whether buying or selling, it is increasingly important in current market conditions to talk with your Nest Broker about how your home fits into the bigger picture. They will advise you and prepare you to make knowledgable decisions and help you achieve your real estate goals. Interested in what’s happening in other markets? To view all of our area market reports, click here.