Local home prices continue to accelerate amid supply shortfall

The Fredericksburg-area housing market continued to march on with the conditions that have been persistent for a long time now:  constrained supply, rising prices, and no end in sight.  Median price soared to its highest point ever reaching $474,000 this May compared to $454,950 last year, representing a 4% year-over-year increase.  Leading the pack in May on price was Stafford County, coming in at a record-breaking $551,000, the highest price point ever seen in the County. Units sold trended down again this month with 577 sales compared to 606 in May of 2023.  High prices fueled a slight increase in total sold dollar volume, coming in at approximately $292.4 million compared to $287.6 last May.

“The residential real estate market in May 2024 continues to experience moderate price growth, although at a slower pace compared to the rapid increases seen during the pandemic years,” comments FAAR President-Elect Lauren Tate.  “This can be attributed to higher mortgage rates, which have tempered buyer demand. Despite this, inventory remains tight in many areas, leading to competitive offer bidding.”

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 11% going from 19 days last May to 21 this year.

Inventory was up a scant 3% from last May with 814 homes for sale at the end of the month compared to 788 last year.  New listings plunged nearly 12% with 609 homes coming on the market this May compared to 688 last year.  New pendings sales also dipped in May posting an 8% decrease with 614 new ratified contracts on properties versus 668 last year.