A recent report by Zillow shows that home values posted their largest annual rise in the last six years. Additionally, Zillow’s Home Value Index shows that home prices have risen during the last 15 consecutive months and are currently at their highest level since 2004.
Zillow, and various sources, including our own research shows that home values rose approximately 6% last year. All indications are that we will see virtually the same price increase this year.
How is this being applied to real life in the Fredericksburg real estate market today? The net effect is that buyer activity is increasing overall because people are beginning to realize that they missed the bottom of the market, and prices have started a somewhat sharp incline. Additionally, investors are frantically looking for investment properties before they get priced out of the market.
Prices are low, but rising. Interest rates are super low, but rising. If you know someone who is looking to buy a home, they should consider doing so sooner rather than later. It likely will not be this good again for several years to come. This is shaping up to be a very busy and quite competitive Spring market in 2013.