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Events and opportunities you can get involved inLocal housing market continues to moderate
The local real estate continues to moderate from its meteoric rise over the last two years. While prices remain high and inventory remains below historical trends, the market continues to slow with double digit decreases in sold volume and units sold and double digit increases in days on market. Total sold dollar volume was down nearly 14% in August of 2022 going from more than $362 million last summer to just over $313.4 million this August. Units sold decreased 21% with nearly 200 hundred less homes sold this August versus last year. There were 876 home sales in August of 2021 compared to 691 in August of this year.
FAAR Board Member Matthew Rathbun comments, “The market is complex and its interpretation can largely differ based on the price-range and type of property that a consumer is seeking to buy or sell. We still suffer from a lack of inventory in the mid-level to affordable housing price ranges. Some sellers are still experiencing multiple offers and favorable terms in the average priced markets. Buyers and Sellers need to speak to an experienced and professional REALTOR® to get an idea of how the market will impact the seller or buyer in their unique position.”
Median price remains high, clocking in at $427,000 versus $390,000 last August, representing a nearly 10% year-over-year increase. While prices remain high, the market is seeing trends that indicate we could be approaching a point where prices will start to moderate as sellers ask more than buyers are willing to pay. Since early 2020, sellers had been consistently getting 100% if not more than their asking price, however that trend has started to reverse with August seeing sellers receiving on average 98.7% of asking price.
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 a staggering 83% this August, coming in at 22 days versus just 12 last year. This increase puts days on market more in line with historical trends for August, which sits at 26 days.
Rathbun continues, “Higher priced homes and the luxury market are seeing extended days on the market as most buyers in that range have elected to remain in place and not move up. Buyers are regaining some control of the buying process as they did prior to 2020 and benefitting from reasonable and competitive negotiation positions, home inspections and housing options. Sellers are still seeing strong offers by well-qualified buyers at or near asking price, when asking for a fair market price.”
Active listings continue to increase, jumping 8% over last year with 979 homes on the market at the end of August 2022 versus 901 last year. The market is still seeing about 300 less homes on the market than the 5-year average for August, but supply is coming back to levels that local agents are used to seeing. New listings were down again this month, with 722 new homes coming on the market compared to 941 last August. New pendings remain down with 591 new contracts ratified in August compared to 849 last August, representing a 30% year-over-year decline.
Are you registered to vote?
November 8th is Election Day! We are always voting in VA with odd year state elections and even year federal and various local elections. Voters throughout the Commonwealth will see seats for the U.S. House of Representatives and some localities like Bowling Green, Orange, Colonial Beach and Port Royal will see Town Council elections. If you need to check your registration or find your polling place, click the button for the VA Department of Elections below.
This year may look very different for some folks at the U.S. House of Representatives level as the Commonwealth just went through a redistricting process. This process ensures that each congressional district is balanced for population. If you want to know what’s changed, check out FAAR’s redistricting webinar from back in the spring.
New licenses taking a long time to process at DPOR? We want to hear from you.
One of the most exciting events here at FAAR is New Member Orientation, when FAAR leadership and staff meet with agents starting their real estate career. While many of these agents begin their journey into real estate very shortly before orientation, we recognize that the path to licensure entails awaiting approval from the Virginia Department of Professional and Occupational Regulation or DPOR. For some, that wait can last several weeks, potentially delaying a smooth launch into the business.
FAAR has made several inquiries with the Virginia REALTORS® on behalf of brokers throughout the region for licenses that seem unduly delayed. Virginia REALTORS®, through their government relations team, has worked tirelessly over the years to build strong relationships with elected officials and government agency staff. Those relationships helped FAAR members directly early in the pandemic when the association quickly worked with the Governor and his administration to deem real estate an essential service. It also helped when licensing times were taking an extended number weeks due to staff shortages caused by the pandemic. Virginia REALTORS® advocated for flexibility on the background check requirements during pending application processing.
While we understand that license application volumes will ebb and flow, we want to ensure that when our brokers are experiencing long wait times for license applications, valuable information is getting to Virginia REALTORS® so they can identify potential problems and check on those individual licenses. In order to quickly and efficiently identify extended wait times and communicate that up to the state, FAAR is establishing a “License Hotline” for brokers to utilize.
- For licenses that have reached 21 business days of review time without being issued, submit information to the FAAR License Hotline.
- Visit faarmembers.com/brokers/ and click on the License Hotline at the top of the page.
- Fill out the form with the broker’s name and contact info, the license applicant name, the license applicant number if available, and the number of days that the license has been waiting for review.
- FAAR will communicate directly with Virginia REALTORS® so that they are aware of issues FAAR brokers are having and can make a specific inquiry with their administration contacts about that individual license.
- FAAR will report back the status of the license or facilitate direct contact from either Virginia REALTORS® or DPOR.
FAAR Realtor® Confidence Survey
We checked in with our agents to see how your experience in the market was so far this year. Here is what we found…even though the market is shifting, it’s still an intense experience for many buyers!
Local home sales continue to tumble
The local real estate continues to fall from its meteoric rise over the last two years. While prices remain high and inventory remains below historical trends, the market continues to slow with double digit decreases in sold volume and units sold and double digit increases in days on market. Total sold dollar volume was down nearly 19% in July of 2022 going from nearly $378 million last summer to just shy of $308 million this July. Units sold decreased a staggering 31% with nearly 300 less homes sold this July versus last July. There were 907 home sales in July of 2021 compared to 631 in July of this year. Median price remains high, clocking in at $438,200 versus $390,000 last July, representing a more than 12% year-over-year increase.
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 a dramatic 63% this July, coming in at 18 days versus just 11 last year. Even the higher number is still lower than the historical 5-year average of 25 average days on market.
Active listings have shown year-over-year growth for a solid year now with July of 2022 posting another 33% increase in homes on the market. There were 1,016 homes on the market at the end of this July compared to 764 last year. New listings were down this July by nearly 16%, with 859 new homes coming on the market compared to 1,020 last year. New pending sales were down over 23% in keeping with the recent trend of slowing sales.
“The market continues to experience a shifting towards balance, but it still does favor the seller,” comments FAAR Board of Director Kardin Lillis. “Sellers are having to adjust to longer days on market and offers that include contingencies. Gone are the days of “blank check” offers, as buyers are now asking for home inspections, appraisals, and even seller closing cost assistance. I expect the market will continue to be steady with the choice homes still being snapped up quickly. With a recent dip in interest rates, I think we will start seeing battle-weary buyers who had stepped out of the crazy market of the past two years start to venture back into house-hunting and this should keep the market steady in the months ahead.”
Fall Newsletter delivers real estate news and more for local REALTORS®!
Your copy of the Fall Newsletter, the FAARside is here! Crack open a copy for updates on local real estate and so much more!
Inside you will find
- Message from the 2022 FAAR President, Deb Ellis
- Message from the CEO, Page Browning
- Welcome to new REALTORS®
- 2023 FAAR Board of Directors candidate bios
- Thank you to RPAC investors
- Is the local real estate market cooling?
and more!
Right click here or the image and click “Save as” to download
2022 REALTOR Cereal Drive Returns this October
The REALTOR® Cereal Drive is back!
2021 was an epic year for the annual REALTOR® cereal drive. Help us reach the 2022 goal of 18,000 boxes, all of which go to the local area food banks. Use the cereal drive as a way to reconnect with your sphere and look for REALTOR®-branded marketing pieces (post-card and flyer) to enhance efforts of collecting cereal from clients and customers.
Let us know if your office plans to participate by emailing Barbara Castillo with your office and contact information by September 23rd.
Collected cereal can be dropped off at the October 27th Halloween Mixer at Wilderness Run Winery from 5-7 PM or For large pick-ups, the Fredericksburg food van can be scheduled to pick up from your location!
Download this square image to help with your marketing
Download this square image to help with your marketing
Download this 8.5"x11" flyer to help with your marketing
Download the two-sided 8.5″x11″ flyer image to help with your marketing
Cereal Drive Office Contest Sign Up 2022
Yes.. I want my office to participate in the annual FAAR Cereal Drive.
The local housing market continues to cool
The local real estate market in June repeated its performance from May with increasing prices, falling sales volume, and growing available inventory. June closed out the month with a nearly 20% decrease in total sold dollar volume, going from approximately $434 million in June of 2021, down to just over $349 million in June of 2022. Fueling the decline in total volume was a steep dip in market activity potentially due to increased mortgage rates. Units sold declined nearly 28%, going from 1,031 in June of 2021 and declining to 748 in June of 2022, just one transaction less than last month. At the same time that demand is waning, median sold price posted another big year-over-year jump, clocking in at an all-time high of $441,000 in June of 2022 compared to $397,500 in June of 2021.
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, stayed nearly flat from last year at 11 days.
Active listings have shown year-over-year growth since July of 2021 with June posting another 30% increase in homes on the market. There were 955 homes on the market at the end of June compared to 735 last year. New listings were down this June by 20%, with 918 new homes coming on the market compared to 1,147 last June. New pending sales were down over 26% and overall pending sales are down 30%, indicating that increasing interest rates could be dampening demand for the third sustained month in a row.
The rental market is also experiencing significant price increases with Realtors® seeing potential tenants offering greater than the posted rent to sweeten their application. FAAR Board of Director and active Property Manager Dawn Josemans comments, “The rental market is still pretty hot. We have multiple applications for every listing and very soon after putting the listing active. People have been offering higher rents and asking for longer term leases as well. There is such a high demand that the prices have increased by about 30-40%. The supply has been low due to the high number of owners either not wanting to be landlords anymore or just wanting to take advantage of the hot sales market.”
#MemberMonday Meet REALTOR® Stephanie Hiner
The Fredericksburg Area Association of REALTORS® Member Spotlight feature allows members of the community to get to know each other before working with each other in a transaction. Each member answers a series of questions to reveal more about themselves as people. It is FAAR’s hope that learning about an individual may spark connections that blossom via email, phone conversations or in-person meetings at events and classes.
Name
Stephanie Hiner
Hometown
Fredericksburg
Current Location
Spotsylvania
Title
Realtor at Berkshire Hathaway Home Services PenFed Realty
Why do you love working in real estate?
I love assisting people into new beginnings during the selling or buying process. I enjoy getting to know people and hearing what their dreams and goals are. Selling or buying a home can be a stressful process, my goal is to take that stress away for my clients as much as possible. The other side of real estate that I love is the interaction with other agents. It is always fun to learn a thing or two from the agent on the other side and build that relationship as well.
Favorite Work Story
I had a client my second year licensed that was a single Mom looking for a rental property. We were having trouble finding one, so I suggested she look into getting pre-approved to purchase her own home. She was hesitant thinking there was no way she would be able to on her own. She qualified though and we were able to find her the perfect home for her and her kids.
What are you most proud of in your career?
Becoming a top agent while maintaining an amazing client experience.
Do you have a special cause or volunteer your time?
Part of my commission from every transaction is donated to two amazing foundations the Sunshine Kids and PenFed Foundation.
Fun Fact
I am a mother of four (2 boys and 2 girls) ranging from ages 14 years old to 4 months old. I was a former mortgage loan officer in Stafford, Virginia.
#MemberMonday Meet #Realtor Brooke Sumners
Name
Brooke Sumners
Hometown
Stafford
Current Location
Locust Grove
Title
Real Estate Agent/Realtor at ULTA Realty
Why do you love working in real estate?
Real estate has been my passion for as long as I can remember. From the architecture of all of the different style homes to the character, decoration, history etc. I always knew that I wanted to be involved in real estate one way or another. Now I get to help families close a chapter in their lives or begin a new one and help them along the way make their dreams come true.
What are you most proud of in your career?
I think the thing that I’ve become the most proud of in my career is that my kids have seen that no matter how long it takes you to get where you want to be that anything is possible if you set your mind to it and want it enough. Most recently, my oldest son graduated high school and for his graduation gift he wanted to take the real estate course to become an agent himself! This makes my heart happy!
Do you have a special cause or volunteer your time?
The Toys for Tots program is very near and dear to me. I have worked at the Foundation for over 11 years and each year I am more grateful to be a part of such a great charity that helps give back to their communities and most importantly the children in those communities, our future!
