The extreme cold temperatures, numerous winter storms, low inventory and rising interest rates have created a lull in the current Fredericksburg real estate market. On the national level, homes sales were down 5.1 percent in January compared to the month prior.
I predict the market to heat up abruptly within the next several weeks to a month. The weather is improving with temperatures starting to rise, along with the release of seller inventory that historically occurs in early spring will improve our current market. The magic bullet will be a reduction in the interest rate to reflect the decline. Even a small decrease may trigger activity. It’s like sitting on a keg barrel of gun powder. Home buyers have been waiting for the right property to hit the market. Low inventory and the small hike in interest rates have prompted many to wait. Sellers are waiting to see better market conditions and weather to list their homes. The decrease in the interest rate would be the fuse and match to set this off. Something has got to give. I predict the market to get warm this spring and hot by early summer.
Tom Smith is an award winning licensed Virginia real estate broker at Century 21 Adventure Redwood in Fredericksburg, VA. He ranked within the top 40 of all Century 21 agents in the Mid Atlantic Region for his home sales in 2013. He also received the prestigious President’s award for his customer quality service for the past two years.
By: Tom Smith
Associate Broker, Century 21 Adventure Redwood