The summer selling season is in full swing in the Fredericksburg area with June real estate statistics blowing 2019 out of the water. Total sold dollar volume increased by 42% fueled by a nearly 8% rise in median sold price and a nearly 31% increase in units sold. Total sold dollar volume settled at approximately $336.6 million compared to $236.8 in June of 2019. Median sold price held steady from May coming in at $339,000, posting a nearly 8% gain. Units sold far outstripped last year with a whopping 934 properties changing hands, compared to 714 in June of 2019, representing a nearly 31% year-over-year increase.
“Many Realtors® were initially expecting the Real Estate market to come to a screeching halt back in March or at least slow down considerably as the pandemic progressed. But with historically low interest rates and a large part of our population in tech-friendly positions, people’s personal lives have changed socially but many are unchanged financially with regards to their ability to meet pre-approval qualifications with lending institutions,” comments FAAR Board Member Lynn Lenahan. “Now that we are into summer, it seems summer is our spring and it’s very busy. We are hurting for inventory more so this year than even last. People want to, and in many cases, need to move but have little to choose from. This has created bidding wars, multiple offers, escalating prices, lots of activity, one happy purchaser, tons of disappointed potential buyers, frustrated agents and a tough time for appraisers in finding comps to support the upward trend.”
Days on market, the time it takes from when a listing enters the market until it receives a ratified contract and is removed from active status on the multiple listing service, fell almost 14% with houses averaging just 31 days on the market in June 2020 compared to 36 days in June 2019.
Overall active listings were down over 54% this June compared to last year and new listings coming on to the market were down nearly 17%. In June of 2019, many agents identified a lack of inventory as the biggest challenge in the market. At that time, the local market had about a 3.6-month supply, a healthy and balanced market is generally considered to be 6 months of supply. The market is seeing a measly 1.3-month supply of homes, with just 811 on the market at the end of June compared to 1,775 at the end of June 2019. New pendings were up over 20% indicating that this trend of a very active market is set to continue throughout the summer.