News

The local real estate market continued to see rising prices against a backdrop of expanding inventory and fewer sales than a year ago.  The median price for April increased nearly 3%, going from $450,000 last April to $462,000 this year.  While prices continued to climb, pace of sales slowed compared to last year.  There were 479 homes transacted this April compared to 522 last year, representing an 8% year-over-year decrease from April of 2024.  That decline in sales led to a decrease of nearly 5% in total sold dollar volume, posting approximately $244.4 million in sales activity this year compared to $256.7 million last April. 

“April 2025 proved positive for sellers with median home prices higher by percentage,” comments FAAR Board of Directors member Gary Gardiner.  “Buyers have had a more challenging start to the year with inventory remaining low.”  

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 fell 4% going from 26 days last April to 25 days this year. 

Active listings broke 1,000 homes on the market for the first time since October of 2022 offering some optimism for buyers in the market who have persistently struggled with low inventory and strong competition.  There were 1,012 active listings on the market at the end of April compared to just 791 last year.  New listings also increased by about 5% with 678 homes coming on the market in April, about 30 more than last year.  New pendings posted strong activity and were up nearly 5% with 636 homes under contract at the end of the month compared to 608 last year. 

“We’ve seen a continued sellers’ market through the first quarter and into the second quarter of 2025.  Sellers have seen increased days on market in some cases, but a nice return on their investment at settlement.  Buyers find challenges through mortgage interest rates remaining higher in the mid-6% range, which is impacting affordability.  Real estate professionals representing both sellers and buyers remain optimistic for a positive future in our local housing market with stability in home pricing, reduction in mortgage interest rates, and increased inventory of homes in the marketplace.”

The February real estate market continued the trend of increasing prices paired with varying demand across the local footprint. The regional median price soared nearly 6% in February of 2025, coming in at $460,000 compared to $435,000 last year. While prices remained high in February, total sold dollar volume decreased by about 3%, going from approximately $157 million last February to just over $152 million this year. That decrease was fueled by a nearly 9% reduction in units sold across the region, with 305 homes transacted in February of 2025 compared to 335 last year.

Most jurisdictions also saw a decrease in units sold except for Orange and Stafford counties and the City of Fredericksburg. Every jurisdiction in the FAAR footprint experienced an increase in year-over-year median price with Orange County leading the pack at nearly 25%. Median price in Orange County jumped from $358,725 in February of last year to $447,000 this 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 jumped over 20%, going from 36 days last February to 44 days this year. Even with that overall jump in average days on market, nearly a third of homes sold in 10 days or less.

There was good news for those watching inventory levels as active listings jumped nearly 21% going from 661 homes on the market at the end of February 2024 to 795 at the end of this February. New listing data was disappointing with a more than 12% reduction in the number of homes coming on the market and a 10% decrease in new pending sales.

“In February, the housing market was abuzz with uncertainty following significant announcements and changes affecting the federal workforce,” comments FAAR Board Member Tamar Myers-Moffatt. “With folks heading back to the office and remote work winding down, everyone’s wondering about how this will shake up real estate. Many of my clients thinking about selling are holding off because housing options are still pretty limited. In addition, my clients are speculating about how the new administration will impact interest rates. I have also noticed an increase with days on market suggesting buyers are becoming more discerning with their homes of choice and the purchase terms they are willing to accept. This could mean a change in the market dynamics as both buyers and sellers have to navigate a complex economic and political backdrop.”

The local real estate market kicked off 2025 with higher prices and total sold volume, but slightly fewer sales and a lot more homes on the market against a backdrop of uncertainty with the potential for major changes in the federal workforce.  Total sold dollar volume was up over 9%, coming in at approximately $167.1 million compared to just under $153 million for January of 2024.  That increase was fueled by a nearly 7% year-over-year median price increase with the January median price settling at $462,000 compared to $432,000 last year.  The pace of sales cooled very slightly with a less than 2% decrease in units sold this past month.  The market saw 319 properties transacted compared to 324 properties last January. 

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 static from last year, going from 39 days last January to 38 days this year.  Nearly a third of homes on the market sold in 10 days or less. 

Active listings showed significant improvement from last year with exactly 800 homes on the market at the end of January 2025 compared to 634 last year, a more than 26% increase.  New listings and new pending contracts were down in January, with a 9% and 5% drop respectively.  January of 2024 saw 467 new listings on the market compared to 427 this year and 383 pending contracts compared to 363 for this year. 

“We’ve all seen first-hand over the past couple of years how interest rates have had a significant effect on our real estate market,” comments FAAR Board Member Meghan Kala.  “Not only are potential buyers feeling the squeeze on what they can afford, but many sellers are hesitant to sell. I think many consumers have been waiting for significant relief on interest rates but now have realized that’s not happening. I believe that we will see sales start to rise in our area as we enter the typically busy spring market. Home prices are increasing in our region at a steady pace, however, overpriced homes are no longer flying off the market. There has been some much-needed pullback on prices as it’s just not sustainable. Many buyers have been able to negotiate a better deal on their contracts, and sellers are being a lot more deliberate and preparatory in their listing process. Even though the lack of inventory is still very real, which keeps us in this perpetual sellers’ market, there’s a lot more balance right now which I find to be positive as we enter spring.”