Stafford County’s market has been hot recently. Are things about to change?
If you’ve watched the news or read the newspaper lately, you know that the housing market has been hot. It’s been crazy at every price point, but we’re coming to you today from a beautiful acreage property. Larger estates like this one used to be pretty stagnant, but now demand is through the roof.
From Q1 2021 to Q2 2022, the average home price increased by $165,000. The average days on market is just seven to 11 days, which tells us that all homes are selling at a higher price, including higher-end listings. So what determines how quickly prices rise? The first factor is inventory, and the second one is interest rates. Inventory remains incredibly low, but we’re watching it very closely because rates are on the rise, and buyers may pull back as a result.
For Stafford County as a whole, the average price is up to $527,000, and the median days on market is only five. Homes are coming off the market quickly, but in our team’s experience, it has been even faster. We are selling a little over 10% of our homes off-market, so these sellers received top dollar without having to go through the traditional selling process. Plus, our buyers took advantage of our connections and purchased a home without competition.
“Homes are coming off the market fast.”
Will the housing market stay this hot for the rest of the year? As interest rates start to increase, it is possible there may be fewer buyers.
However, we don’t expect inventory to significantly increase anytime soon. This means that prices may not rise at the exponential rate we’ve seen recently, but they’ll still increase. We believe the average home will appreciate by 5% to 8% in 2022.
What does this mean for buyers? There may be a little less competition in the future, but that doesn’t necessarily mean you should wait. Interest rates are rising, and the higher they get, the less purchasing power you have, so be sure you are getting good advice on timing. Look at what your purchasing power looks like now vs 3, 6…. months from now.
If you are looking to buy a home this year, please reach out to us so we can discuss your situation. Also, if you have questions about today’s topic or anything else, please call or email us. We are always willing to help!