“The Fredericksburg area real estate market in 2024 was marked by constrained inventory, making it a challenging year for buyers and sellers alike,” comments 2025 FAAR President Lauren Smith.  “Buyers faced intense competition, rising interest rates, and affordability concerns, which often priced first-time buyers out of the market. Many had to compete with cash offers or waive contingencies like inspections and appraisals just to remain competitive. Additionally, buyers struggled with the uncertainty of fluctuating interest rates, which affected their purchasing power and often caused hesitation or last-minute changes in plans.” Smith also points out that sellers were not immune from these concerns, as even those with significant equity in their homes hesitated to list their properties.  Fears of not finding a suitable replacement, the rising cost of “trading up”, and much higher interest rates than on their current mortgage kept many would-be sellers on the sidelines.

These factors were the backdrop to a housing market that still saw increasing prices despite the headwinds dampening demand.  The year closed with a total sold dollar volume of $2.8 billion which represents a nearly 7% increase over the year-end $2.6 billion total for 2023.  Median price ticked up nearly 4% year-over-year from the end of 2023 coming in at $456,875 for 2024 versus $439,900 the year before.

Every jurisdiction within the FAAR footprint, except the City of Fredericksburg, saw a significant increase in annual median price with Caroline County and Colonial Beach taking the lead with 8% increases from 2023.  These jurisdictions also happen to be the most affordable in the region with a 2024 median price of $366,900 and $325,000 respectively.  Stafford and King George counties took the lead on highest regional price at $520,000 and $465,000 respectively.  Spotsylvania and Orange counties were not far behind with median prices of $450,000 and $414,900 respectively.  The City of Fredericksburg settled at $447,450 with a scant 1% decline in price from the previous year.

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 by just one day, going from 27 days on average in 2023 to 28 days in 2024.  However, the largest portion of homes still sold very quickly, with 2,587 homes flying off the market in 10 days or less.

Nearly 41% of homebuyers utilized a conventional mortgage for financing with another 27% qualifying for VA loans.  Cash buyers made up another 12% of the market. The average mortgage rate for 2024 was about 6.7%.

December closed the year with small declines in year-over-year total sold volume and units sold.  Prices saw an increase of 5% going from $425,000 in 2023 to $445,000 in December of 2024.  Spotsylvania and Caroline counties saw significant price and volume increases in December, while King George and Stafford counties had notable declines.  Caroline led the pack in December of 2024 with a 50% increase in total sales volume fueled by a nearly 17% increase in median price and a 15% increase in units sold.  Caroline closed out the year with a monthly median price of $394,900, the highest monthly median price on record for the County.  Stafford County saw a more than 13% decline in total sales volume fueled by a nearly flat year-over-year median price of $495,000 and a nearly 10% decline in units sold.

December of 2024 did see a bright spot in inventory supply as active listings on the market jumped by more than 20% from the end of 2023.  December of 2023 saw just 660 homes on the market, but December of 2024 saw an inventory recovery of nearly 800 homes to choose from, though still well below the 1,000 market that was typical before 2019.

Realtors® are optimistic about the pent-up demand in would-be buyers in 2025 and the slight balancing of the market as more inventory makes its way on the market.  Retaining a Realtor® to guide buyers and sellers through the tricky homebuying process can help alleviate a lot of stress as their local neighborhood expertise provides a solid foundation.

As 2024 draws to a close, the Fredericksburg regional housing market saw big increases in median price and units sold, while active listings continue to slowly expand. Total sold dollar volume increased a whopping 46% in November, coming in at approximately $244 million compared to $167.4 million last year.  Units sold were up over 25% year-over-year, with 359 homes transacted last November compared to 451 this year.  Median price sold price increased nearly 6% last month, coming in at $465,000 compared to $439,900 in November of 2023. 

Caroline County posted its second highest median price on record, approaching the $400,000 mark.  In November of 2024, buyers saw the region’s most affordable housing market soar to $391,500 compared to $354,000 the year before.

“With the federal elections behind us, clients are starting to come back out and are getting ready to make moves starting as soon as the new year begins by starting their searches now,” comments FAAR Board of Directors member Denise Smith.  “This month has already been a busy month, but we are in need of more homes in first-time homebuyer range.  There just isn’t enough inventory in that category.  There is pent-up demand from buyers out there and if we get any slight interest rate reduction, listings will move quickly again.” 

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, was up about 7% with homes averaging 31 days on the market this November compared to 29 days last year. 

Inventory was up by nearly 16% in November of 2024, but the region is still seeing a seriously constrained supply and remains stubbornly under 1,000 homes on the market.  November closed out the month with 943 homes for sale compared to 815 last year.  New listings were up nearly 11% with 425 new homes coming on the market this November versus 384 last year.  Despite the strong sales activity of closed sales in November, the month closed out nearly 9% down on new pending contracts, with 367 transactions pending compared to 402 last year. 

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The regional median home price was up year-over-year for the 18^th month in a row this October, though at a lower percentage than many previous months.  The median sold price settled at $455,000 in October of 2024 compared to $440,000 in October of 2023, representing a nearly 3% year-over-year increase.  Units sold remained nearly static with a 1% year-over-year decrease from 410 homes sold in October of 2023 compared to 404 homes this year.  Total sold dollar volume was up nearly 4%, posting approximately $202.6 million in sales for October of 2024 compared to $195.5 million in sales last year.

The City of Fredericksburg posted its highest median price on record, and also for the region, coming in at $615,000 for this October compared to $412,665 last year. That median price was derived from 17 homes sales in the month with the highest closed price at nearly $2 million.

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 nearly 4%.  Houses were on the market for an average of 27 days this October compared to 26 days last year.

Inventory ticked up across the board in October, approaching 1,000 active listings for the first time since 2022.  October of 2024 finished out the month with 969 active listings compared to 900 last year, a nearly 8% increase.  New listings were up nearly 11% from last year with 569 homes coming on the market in October of 2024 compared to 514 last year.  New pending sales were up solidly this month, with 481 pending contracts compared to 424 last year, a nearly 14% gain.

FAAR Board of Directors member Dawn Curry comments, “For me and my clients, the market has been consistent with a typical seller’s market. Housing prices have remained strong with appraisals coming in at value.  Days on market have been longer than we’ve been used to over the past year, but it seems we have fewer qualifying buyers. “