What Is My Home Worth & Why?

One of the things I like about Lynchburg is it’s typically a very stable environment. It might not be overly exciting, but you know what to expect. That predictability has historically been true of our real estate market as well. We don’t usually experience the elation of double digit appreciation in one year and we don’t know the despair of real estate market crashes. Over the past year, however, we have seen remarkable changes in real estate values as available homes for sale (inventory) has dropped like a rock and the number of people desiring to purchase a home (demand) has surged. So what is causing these changes in our market? Without giving you a 200 page economics report, here are a few reasons: 

1.) Interest rates are unbelievably low! This causes more buyers to want “in” and increases the price they can afford, putting more pressure on the market to deliver “inventory”.

2.) Building costs are unbelievably high! A sheet of plywood that used to cost $8 now costs $35+! Creating affordable single family home housing is almost impossible with current building costs. This restricts the supply of new homes to the market. 

3.) Inventory is tighter than ever! The small number of homes available has prevented some would-be sellers from moving. This has further restricted the number of homes available for sale. 

In summary, we have a perfect storm of very low supply and very high demand which, according to economics 101, increases prices. The lower the supply and the higher demand the more exaggerated these price increases become, which is exactly what we’re seeing in today’s market. 

It is an absolutely fantastic time to sell, so if you’ve considered making a move, please let me know! I’ll be happy to provide a free full market analysis of your home and go over some options that help de-stress the process of finding your home as well!