Here's your market update, friend!
Market updates can be a bit on the dry side. I'm going to do my best to keep this short, sweet, and to the point for any of you that are here, reading this, and curious about today's market. Friendly reminder - stats for a month do not come out until about mid-month the following month. So this update is for JUNE 2022.
The real estate market for the Greater Fredericksburg Region in June had a very similar performance to May.
- Increasing prices
- Lower sales volume
- Growing available inventory
The dip in market activity is likely due to the increased mortgage rates. However, despite this, we are still seeing a generous increase in the median sold price... which is sitting at an all-time high of $441,000 in June of 2022 (compared to $397,500 in June of 2021).
- We are seeing homes stay on the market longer (average of 11 days currently). This gets some sellers stressed because all we have heard the last few years is how the neighbor's house was under contract within 10 seconds of it being active. Reminder - the market we were in the last few years was not normal by any means. We have to start remembering what a normal market looks like... think pre-pandemic when the average day on market was 30 days! Deep breaths, friends!
- The median home price is continuing to increase... and we all know that is a good sign for sellers as it means that value is going up.
- Be prepared to negotiate and be flexible. With a balanced market comes a little more power for buyers. Lean on your Realtor for their expertise and guidance as you work toward getting under contract and to closing with an offer that may have some include a few things sellers got a little spoiled on not having to do the last few years (inspections, closing costs, repairs, etc).
- Helloooo, buyers! Some of you have been through the dang ringer these last couple years. Some of you didn't even bother to try after hearing so many discouraging stories. Well, now is your time to get into the game. With this shift toward a balanced market, comes a lot more opportunity for you.
- While inventory isn't so high that we can officially say we are in a balanced market, we are definitely seeing enough inventory and enough of a shift to see buyers get some serious power when it comes to negotiating terms.
- Yes, mortgage rates have gone up. Don't let your family, friends, social media, or the media in general scare you though. We are still looking at historically low rates and there's a beautiful thing called refinancing that you can visit in the future if we see another dip. The saying is "Marry the house, date the rate".
- Most listings are receiving multiple applications very soon after going active. Some prospective tenants are offering higher rent and asking for longer term leases to sweeten their application.
- The low supply & high demand is showing a 30-40% increase in prices.
- With rental application criteria being pretty tight, it would be a great time to chat with a Realtor and a Loan Officer to see what your options are on buying.