Fredericksburg Area Association of REALTORS® Market Report Key Takeaways
Economic conditions in Virginia continued to improve in the fourth quarter, with broad-based job gains and another drop in the unemployment rate. The employment picture also improved in the Fredericksburg region, with the unemployment rate falling to near pre-pandemic levels.
Despite steady economic progress, consumer confidence remains weak, as individuals and families face rising prices and a surge in COVID-19 cases. The measure of expectations of future economic conditions fell to a 16-month low in December 2021.
Mortgage rates began to tick up at the end of 2021. Persistently high inflation will prompt the Federal Reserve to raise the federal funds rate in 2022, which will push mortgage rates even higher in the months to come.
Housing Market Conditions
There were 2,319 homes sold in the FAAR region during the fourth quarter. Sales declined slightly compared to a year ago, the first year-over-year drop in sales in the region since early 2019.
Despite cooler sales activity, home prices continued to rise quickly in the FAAR area. The fourth quarter median sales price was $380,000, which is 12% higher than a year ago, a gain of $40,000.
Inventory fell again in the FAAR region. There were just 671 active listings in the region at the end of the fourth quarter, 12% fewer listings than a year ago. There is less than a month’s supply of inventory in the FAAR market.