The regional median home price was up in May, but individual localities saw wins and losses in the price department. The median sold price settled at $454,950 this month compared to $436,000 in May of 2022, representing a 4% year-over-year increase. Units sold were down 19%, coming in at 606 compared to 749 units sold last May. Total sold dollar volume was down over 16%, posting approximately $287.6 million in sales for May of 2023 compared to $343.2 million in sales last May.
Prices and units sold were all over the map for the local jurisdictions. Caroline County and Colonial Beach saw double digit increases in units sold, but median price declines for May of 2023. The City of Fredericksburg saw a 4% price decline and no change in units sold from last year. Orange County was up over 14% in price, coming in at $388,950, but also saw a nearly 30% decline in units sold. King George County saw a sizeable price increase at $456,000, an 18% increase from last May, while Spotsylvania County saw a 3% decline and a $429,900 price point. Stafford County broke the $500,000 median price mark again in May, coming in with a 5% increase at $505,000, but also saw a 17% decrease in units sold.
FAAR Board of Director Lauren Tate comments, “The local market continues to be strong for homeowners who are selling their home. This is an excellent time for home sellers to cash out, but it leaves home buyers at the top of their price range, paying higher interest rates, offering above asking price, and competing with multiple offers. Buyers also often feel exposed by having to reduce the number of contingencies that would protect them in the past. To compete with these multiple offers, home buyers often remove contingency protections such as home inspections and also offer to make up the difference on appraisal gaps. While it is not recommended to remove these protections, buyers feel compelled to do so to better their chances of securing the winning bid.”
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, increased 73% up to 19 days this May compared to just 11 days last year.
Inventory was also down slightly again in May, finishing out the month with 788 active listings compared to 838 last year, a nearly 6% decline. New listings were down 33% from last year with 1,024 homes coming on the market in May of 2022 compared to 688 this past month. New pending sales were down 19% in May, with 668 pending contracts compared to 823 last May.