Buying and selling real estate is an emotional situation for those doing the buying and/or selling. In the midst of that emotion, people lose sight of the fact that real estate isn't all that much different from the rest of the business world. All businesses and all markets are influenced by the simple principle of supply and demand.
If supply is low, then buyers compete and prices go up. If supply is high, there are not enough buyers for the supply and prices go down to compete with other suppliers. It has been that way forever and to quote Ecclesiastes 1:9 "What has been will be again, what has been done will be done again; there is nothing new under the sun."
There is nothing new under the sun... this has happened in real estate before and it will happen again. Right now in Fredericksburg real estate, the supply is VERY high and demand is VERY low.
Is there any reason the principles of supply and demand shouldn't apply to this market? Do you feel like this is a good time to buy a home in the Fredericksburg area?
Jeff Edmisten
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