The Fredericksburg Real Estate Market started hot for a short time this past June and remained warm until about mid August. From late August until now, the market has remained cool and now things should start to heat up.
Today’s average Fredericksburg interest rate for a 30 year fixed FHA or VA loan is at a all time low of 3.5 percent. A 30 year fixed conventional is at 3.8 percent and the big news is a jumbo is at 4.25 percent. These rates are predicted to go up in the spring of 2015. Inventory of Fredericksburg real estate is average. Home buyers that have been holding out for the best rates may find that now is there time to act. We are currently in a strong buyer’s market. The low activity will give buyers a stronger negotiation on their offers.
Why is the Fredericksburg home sales market slow? I think there are several driving factors to blame. Unemployment is still high in the area. The economy is still in a recovery phase. Add the recent threats abroad and upcoming Holidays and you will find that home buyers will have a tendency to wait to purchase. This is not a good idea. Homebuyers are getting good deals now because of these circumstances. If we were in a healthy market, the rates would be higher and home sellers would be in control.
If you or someone you know is even thinking about purchasing a new home soon you may want to get in touch with a local real estate professional and gets the ball rolling. This agent should find out what your wants and needs are and set up a “Hot” search for you. This will keep you informed up to the minute on your target home search. The agent should be a strong negotiator with great communication skills and be well informed with the ever changing Fredericksburg real estate market place. I am one of those agents. I use old fashion one on one full service to take my clients through the entire buying process from the first meet up until I hand them the keys.
Tom Smith is a licensed Virginia Associate Broker and active real estate agent with Century 21 Redwood in Fredericksburg, VA.