Unstable Market Continues in Parts of Fredericksburg, Virginia

Lee's Hill, the desirable community close to downtown Fredericksburg, remains unstable within the real estate market. Northern Virginia's market has been in a downswing since late 2005, but many markets are beginning to stabilize now. Lee's Hill has not followed that trend over the past few months. Single Family home prices in the community continue to fall. Homes on the market for more than six months are becoming very common. Sellers that are inflexible with their asking price are sitting on the market creating massive amounts of inventory, but few potential "good buys" for buyers in the market. Sellers willing to move their price are faced with multiple price reductions to generate interest and future offers. A difference of 10% or more from their original asking price and the final price that generates an offer and sale is not uncommon. Sellers do not give up their hard-earned equity easily, so reducing their asking price slowly is the best method to avoid throwing away money.