The local real estate market continues to sizzle fueled by plummeting inventory and skyrocketing demand as many prospective buyers look for more space, more yard, and more in-home amenities like pools and playscapes. Total sold dollar volume was up over 30% from last year, coming in at approximately $320.4 million this July compared to $245.6 million last July. The region’s median price increased for the 16th straight month, soaring nearly 8% year-over-year going from $324,900 in July of 2019 to $349,900 in July of this year. Units sold also increased significantly, rising over 18% with 849 homes sold this July compared to 719 last year.
“As we continue to navigate these unprecedented times, most buyers and sellers are adjusting and accepting social distancing and adhering to the COVID-19 CDC guidelines,” comments FAAR Board Member Cindy LeBrun. “Some sellers are pricing to get multiple offers with buyers not asking for closing costs or forgoing the home inspection which could be a mistake later down the line. Buyers are now realizing that they need to move quickly to get pre-approved with a lender to be able to make their offer stronger to the seller. The historically low mortgage rates have been a game changer and most lenders predict the low rates continuing through December, which should keep the housing market busy.”
Two of the region’s localities approached the $400,000 median price mark in July, adding even more fuel to the regional sales price increase. The City of Fredericksburg saw a 16% rise in median price from last year, settling at $394,900 while Stafford County just missed hitting $400,000 with an 8% median price increase to $399,000. Every jurisdiction in the FAAR footprint saw significant increases in units sold but Caroline County led the pack with a whopping 71% increase, going from 42 homes sold last July to 72 this July. Caroline’s affordability and wide-open spaces are proving attractive to many prospective buyers.
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 over 9% with houses averaging just 30 days on the market in July 2020 compared to 33 days in July 2019.
The region’s supply issues continue to frustrate buyers as the market saw another huge drop in active listings compared to last year at the same time. The region closed out July with just 740 homes on the market, an astonishing 57% decrease from last July. New listings provided a glimmer of hope that sellers are feeling a little comfortable listing their homes with July posting only a single digit loss in new listings compared to the previous year. The market had been experiencing double digit decreases in new listings each month since the start of the pandemic. New pendings were up nearly 20% indicating that this trend of a very active market is set to continue for the rest of the summer.