The summer selling season is in full swing in the Fredericksburg area with June real estate statistics blowing the record-breaking 2020 out of the water. Total sold dollar volume increased by 29% fueled by a more than 17% rise in median sold price and a more than 10% increase in units sold. Total sold dollar volume settled at approximately $434.3 million compared to $336.6 in June of 2020. Median sold price was flirting with $400,000 for the month, coming in at $397,500, a more than 17% year-over-year increase from 2020. Closed sales far exceeded the five-year average, showing how strong buyer demand throughout the region. The 5-year average for closed home sales in June, typically real estate’s hottest month, is 813. In June of 2021, a whopping 1,031 homes changed hands, a more than 10% increase over 2020’s already record-breaking number of 934 homes.
“The local market continues to be strong for sellers but very competitive for buyers, as it is across the country,” states FAAR Board of Director Sandy Pearce. “The lack of inventory seems to be the primary stumbling block even though low interest rates should be enticing to buyers. Buyer fatigue has some buyers stepping back from the home search and continuing to rent, although rental prices are also rising. The new home communities that are popping up all over the area are out of reach for many buyers in terms of cost, but even so the inventory of those “to be built” homes are often sold out before the shovels go in the ground. There are pockets of “softening” where the days on market are a bit longer or the number of above-list offers are fewer, but sellers are still seeing good return on their investment and this most likely won’t change any time soon,” continues Pearce.
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 a staggering 68% with houses averaging just 10 days on the market in June 2021 compared to 31 days in June 2020.
Overall active listings were down over 9% this June compared to last year, with just 735 homes available in the entire FAAR footprint at the end of June. New listings continue to be a bright spot with yet another month beating the five-year average with a 40% increase over last June. In June of 2020, 815 new homes came onto the market compared to 1,147 new homes listed this June. New pending sales were up nearly 4%, indicating that buyer demand will remain robust into the height of the summer.