Real Estate Sales March Month in Review for Lynchburg, VA area

Mortgage rates, 30 year fixed, started the month about 5.3% and have ended up in the 5% range. This week saw a drop of just a smiggon, That's good news for consumers, but don't expect the rates to stay this low unless the economy tanks further. Projections are that we are at the low in the cycle.

There are signs that the real estate market is picking up over much of the country except in the hardest hit areas. Rates normally inch upwards under these conditions. The law of supply and demand very much impacts the real estate market and as consumers are hit by the bug to get our and do something, the rates head higher. Normally in prime season which starts in April and ends the end of July, the rates are at their highest for the year.

Properties under $200,000 continue to be the bulk of the sales. Average days on the market are in the 280 range vs 210 last year. and have increased from 219 in February. There were 133 sales in March vs 168 last year. Average sales price has dropped to $151,982 vs $184,290.

Does this mean the price of your home has dropped by the same percentage? Not likely! It usually means that more first time buyers are now in the market and the lower end homes are the one's that are selling, so the average prices drop.

A positive we are seeing is that the inventories are starting to drop vs last year around 1800 vs 1700 this year. That is still a huge number. We now have just under 14 months of inventory.

If you would like to have an estimate of value on your home, if you are thinking of selling, call me. I'd be glad to help.

Up or down? The number of days on the market normally begins to decrease with April figures, so we will have to wait and see if that happens next month. I predict, rates will be up next month.

Norma Brandsberg, GRI Marks Realty Co., Inc 4119 Boonsboro Rd., Ste. 205 Lynchburg, VA 24503 home office(540) 586-9496 cell phone (434) 426-0837 toll free (800) 551-0975 norma@normasells.com

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