The regional median home price was up again in July, with all but one locality seeing increases. The median sold price settled at $462,450 this month compared to $438,200 in July of 2022, representing a nearly 6% year-over-year increase. Units sold were down 20%, coming in at 502 compared to 631 units sold last July. Total sold dollar volume was down nearly 21%, posting approximately $243.6 million in sales for July of 2023 compared to $308 million in sales last year.
Caroline County posted its highest price on record, coming in at $385,000, an 18% increase from last year. King George County posted a second-month straight loss in median price, which came in 16% lower than last year. All other jurisdictions in the FAAR footprint saw strong price growth ranging anywhere from 4% in Stafford County up to 46% in the City of Fredericksburg.
FAAR Board of Director and property manager Dawn Josemans comments, “The rental market has slowed down since the first quarter of this year. We are no longer experiencing multiple applications when first listing a property for rent. The supply is fairly high as properties are sitting on the market longer. I am seeing an increase of days on market as each month passes. However, rents remain higher than this time last year. Home sales are still strong despite the time it is now taking to get under contract in an average situation. Contracts are asking for higher amounts in seller concessions to the buyer than last year as well. The market is just more complex now due to the changing interest rates that are scaring off inexperienced buyers and sellers worried about the time it is taking to go under contract.”
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 17% up to 21 days this July compared to 18 days last year.
Inventory was also down again in July, finishing out the month with 822 active listings compared to 1,016 last year, a 19% decline. New listings were down 32% from last year with 587 homes coming on the market in July of 2023 compared to 859 last year. New pending sales were down 21% in July, with 539 pending contracts compared to 679 last year.