The regional median home price was up yet again in September continuing a streak of 17 straight months of regional home price appreciation.  The median sold price settled at $472,000 in September of 2024 compared to $435,000 in September of 2023, representing a nearly 9% year-over-year increase.  Units sold remained nearly static with a less than 1% year-over-year increase from 435 homes sold in September of 2023 compared to 438 homes this year.  Total sold dollar volume was up nearly 12%, posting approximately $232.3 million in sales for September of 2024 compared to $207.4 million in sales last year. 

Spotsylvania County led the pack with increased sales and median price, posting the county’s highest ever median sales price by a long shot.  Median price soared to nearly $500,000 with a 19% year-over-year increase from last year with a $497,000 September 2024 median price, compared to $418,000 in 2023.  Units sold were up nearly 31% in September with 165 homes sold compared to 126 last year. 

“We have been transitioning into a more balanced market in the Fredericksburg region,” states FAAR Board Member LeAnn Black.  “In a more balanced market, we typically see sellers and buyers in win-win positions where negotiations have led to compromise. On the seller side, we have more homes for sale than we’ve seen in several years. The increased supply has reenergized buyers who are actively looking for a home of choice. The transitioning market brings its own set of challenges as sellers and buyers navigate the new norm. Sellers are relying on pricing data from homes that may have sold when sellers had more market control. This can make it more difficult for sellers to arrive at an initial price that is in the “sweet spot”. When there is a discrepancy between the list price and market conditions, this can result in lowered prices and homes lingering on the market. With the increased supply, buyers have more options available to them. They are also finding that they have more time to thoughtfully consider homes before making an offer. In addition, they have more buying power as mortgage rates decrease. We are seeing these factors in our region and we are excited by the possibilities for consumers.”

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 again last month, this time by a whopping 36%.  Houses were on the market for an average of 34 days this September compared to 25 days last year. 

Inventory ticked up across the board in September, finishing out the month with 917 active listings compared to 859 last year, a nearly 7% increase.  New listings were up nearly 8% from last year with 529 homes coming on the market in September of 2024 compared to 491 last year.  New pending sales were up sharply this month, with 477 pending contracts compared to 414 last year, a more than 15% gain. 

The regional median home price was up again in August continuing a streak of 16 straight months of regional home price appreciation.  The median sold price settled at $461,500 in August of 2024 compared to $450,000 in August of 2023, representing a nearly 3% year-over-year increase.  Units sold were also up last month, posting a nearly 3% gain with 531 homes sold versus 516 last year.  Total sold dollar volume was up over 4%, posting approximately $267.7 million in sales for August of 2024 compared to $256.2 million in sales last year. 

“The Fredericksburg real estate market is entering a healthy phase of normalization after years of rapid price growth and swift home sales driven by COVID-related changes in lifestyle,” states FAAR Vice President Matthew Rathbun.  “We’re now seeing increased housing availability, as more homeowners are listing their properties than we’ve seen in recent summers. With interest rates showing a slight drop and homes staying on the market a bit longer due to the end of summer vacations and back-to-school transitions, buyers now have the chance to make more informed and less rushed decisions. This shift allows for a more strategic approach to home buying, without the pressure of submitting overly-competitive offers.”

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 again last month by 13%.  Houses were on the market for an average of 26 days this August compared to 23 days last year. 

Inventory ticked up in August, finishing out the month with 944 active listings compared to 848 last year, an 11% increase.  New listings were down 5% from last year with 570 homes coming on the market in August of 2024 compared to 603 last year.  New pending sales were down 5%, with 495 pending contracts compared to 521 last year. 

Rathbun continues, “While prices continue to rise at a lower rate than the past few years, the increase in available inventory reflects a positive outlook for both buyers and sellers. The Fredericksburg area remains a vibrant hub for real estate activity, and with trusted real estate advisors on hand, first-time buyers and those re-entering the market are finding creative solutions to achieve their homeownership goals. Our market continues to thrive, and with continued efforts on affordability, more families will be able to realize their dream of owning a home in our sought-after region.”

The regional median home price was up again in July, with most localities seeing increases.  The median sold price settled at $473,740 this month compared to $462,450 in July of 2023, representing a more than 2% year-over-year increase.  Despite persistent high prices, units sold were up nearly 5%, coming in at 527 compared to 502 units sold last July.  Total sold dollar volume increased more than 10%, posting approximately $268.4 million in sales for July of 2024 compared to $243.6 million in sales last year. 

King George and Spotsylvania counties posted some of their highest median prices on record but prices didn’t scare buyers off as both counties also posted year-over-year increases in units sold.  King George County clocked in at nearly $500,000 in median price and saw 8 more sales than the previous year.  Spotsylvania County’s median price was nearly $473,000 and saw 28 more home sales than July of 2023. 

FAAR Board of Director Abby Fitzsimmons stated, “Typically, July is my least favorite month to list homes in because things seem to sit while everyone is on summer vacation.  However, this year with the low inventory, listed homes are getting lots of showings and competitive offers very quickly.”  Fitzsimmons is seeing lots of competition in the lower-priced markets, stating that “buyers looking under 500,000 are finding themselves having to move quickly on listings, going in over asking price and waiving home inspections to have a shot at the few houses that are actually available in their price range.  I’m also finding that the majority of my buyers are looking for move-in ready.  Homes that need work are not being considered like homes that are in great condition right now.”

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 19% up to 25 days this July compared to 21 days last year. 

Inventory was a bright spot in August, increasing nearly 11% and putting active homes above 900 for the first time in nearly two years.  New listings were also up, posting a nearly 9% gain from last year with 587 homes hitting the market in July of 2023 compared to 639 this year.  New pending sales were virtually unchanged from July of last year, with a slight decline of just one less pending sale coming out of the month than the previous year.

The regional median home price was up again in June, with all but one locality in the FAAR footprint seeing increases.  The median sold price settled at $474,093 this month compared to $450,000 in June of 2023, representing a more than 5% year-over-year increase.  Units sold were down 14%, coming in at 537 compared to 625 units sold last June.  Total sold dollar volume was down nearly 12%, posting approximately $271.4 million in sales for June of 2024 compared to $308 million in sales last year. 

Orange County posted its highest price on record, coming in at $434,557, a 10% increase from last year.  Colonial Beach was the only jurisdiction in the FAAR footprint that did not see a median price increase in July.  

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% up to 20 days this June compared to 18 days last year. 

Inventory was up slightly this June, finishing out the month with 877 active listings compared to 851 last year, a nearly 3% increase.  New listings were down 3% from last year with 652 homes coming on the market in June of 2023 compared to 631 this year.  New pending sales were down nearly 4% in the last month, with 542 pending contracts compared to 564 last June. 

The regional rental market remains competitive with continued elevated prices.  “The rental market is pretty steady,” comments FAAR Board of Director and Property Manager Dawn Josemans. “We continue to see high rents with renewal increases in the triple digits.  We were seeing more application competition in the second quarter with it waning a bit recently.  Properties are still renting fairly quickly in the moderate rent range with the $3,000-$5,000 per month rentals taking longer to lease up.”