Press Releases

Local Real Estate Market Continues Strong Showing in February

The February real estate market continued the trend of increasing prices and falling demand, but also showed some promising signs for the those waiting for more inventory with a slight increase in active listings and a large increase in new listings compared to last year.  Median price was up nearly 4% year-over-year coming in at $435,000 this February compared to $419,900 last year.  Total sold volume remained static from last February coming in at approximately $157 million, a scant 1% decrease from 2023 numbers.  Units sold fell by 6% year-over-year compared to last February with 335 homes selling last month compared to 358 in 2023. 

“I find the present condition of our real estate market to be quite promising,” states FAAR Board of Director Tamar Myers-Moffatt.  “A growing number of homeowners appear ready to place their properties on the market, and there is a noticeable increase in active listings becoming available.  The open houses that I have hosted have steady streams of buyers who seem prepared to proceed. My buyers are encouraged by the quality of homes available but are still faced with multiple offer scenarios.”

The real estate market is highly sensitive to even small fluctuations in mortgage rates and the dip in rates that started the year turned into many more buyers coming out.  That increased competition was reflected in homes spending less time on the market than last February.  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 decreased 10% going from 40 days last February to 36 this year.

Active listings, new listings, and new pending contracts all increased for the first time since 2022, but available homes remain in chronically short supply and well-below pre-2020 levels.  Active listings increased nearly 2%, with 661 homes on the market compared to 649 homes closing out last February.  For comparison, there were 1,140 properties on the market at the end of February 2020 so the market is currently running at half of what was typical before the pandemic.  While the most recent active listings increase is very small, there was encouraging news in new listings.  The market saw a 32% increase of homes coming on the market this February with only 393 homes listed for sale at the end of February in 2023 compared to 520 new home listings this year.  New pending contracts were up 8% with 468 pending transactions this February compared to 433 last year.

Myers-Moffatt continues, “All of my current buyers have a home to sell, so finding that next property is a point of concern. Leveraging post-occupancy addendums certainly helps, however many of the offers we receive also have home sale contingencies.  This puts the seller in an especially vulnerable position when formulating their exit strategy for a new property.  I think we can expect to see this trend continue through the spring and summer months.”  

 

2024 Real Estate Market Kicks Off with a Bang

The local housing market started the year out with a bang, racking up year-over-year increases in units sold and total dollar volume for the first time in nearly two years.  January closed with approximately $153 million in total sales volume, an almost 8% increase since last January.  Sold volume was fueled by a nearly 7% year-over-year increase in units sold, coming in at 324 homes sold this January compared to 303 last year.  This is the first time the market has seen an annual increase in units sold since April of 2022.  Median price increased a modest 3% coming in at $432,000 this January compared to $419,900 last year. 

“Our region is still experiencing limited inventory, and the tension between low buyer demand and even lower seller activity is keeping upward pressure on home prices,” comments FAAR Board of Director Meghan Kala.  “Median home prices in every locale continue to rise and our fringe areas are no exception. Buyers should look at these year-over-year prices as an indication that ‘the bubble isn’t going to burst’.”

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

Active listings, new listings, and new pending transactions were all down in January with just 634 homes on the market at the close of the month, the lowest since February of 2022.  New pending sales were down more than 17% with 383 homes under contract compared to 464 last January.  New listings stayed static from last year continuing the trend of diminishing new product coming onto the market.  The region saw 476 homes listed last January compared to 467 this year, a nearly 2% decline.

Sellers continue to sit on the sidelines to see what mortgage interest rates are going to do.  Kala comments, “As growth and development in the Fredericksburg region continues, the parallel that has consistently remained the same is the immediate need for homes. Sellers could be sitting on a mountain of equity and are ready to downsize, but they are uncertain if the time is right to list. The question they may ask themselves is – where will I go? As a result, we may see an increase of home sale contingencies in transactions. We are still experiencing multiple offer scenarios, which should encourage sellers who are getting ready to put their home on the market. Many buyers have been enjoying the security of contingencies in the slower market, but those days may be numbered if rates decline. Attainability, especially for first time home buyers, could prove to be challenging if they continue to wait.”

 

2023 Housing Market Plagued by Low Inventory, Volatile Interest Rates

The local housing market finished the year with low inventory, high prices, and falling demand, trends that started in 2022 and accelerated throughout 2023.  “The real estate market in the Fredericksburg area saw a continuation of low inventory issues in 2023,” states 2023 FAAR President Randy Walther.  “The start of the year held hope that a stable market would take hold but rising interest rates quickly changed that outlook.”

The year closed with a total sold dollar volume of $2.64 billion which represents a more than 21% decrease over the year-end $3.3 billion total for 2022.  While prices were up in 2023, the pace of increases moderated with a nearly 4% year-over-year increase in median price, going from $425,600 in 2022 to $439,900 in 2023.  The trend of decreasing units sold continued to accelerate last year, finishing out 2023 with 5,531 transactions compared to 7,284 units sold in 2022.  This is down from a recent high in 2021 of 9,266 units sold.  Stafford and Spotsylvania counties saw volume reductions that accounted for nearly all of the 1,700 fewer units sold in 2023 versus 2022, but despite falling sales, prices continued to rise in both places.  Spotsylvania County posted a 2023 median price of $430,000 while Stafford County hit the $500,000 mark.

“As the year progressed, sellers were less inclined to give up a low interest rate loan if they had to assume a new loan at a higher rate,” continues Walther.  “Even with higher rates, houses did not sit on the market for an extended period if they were move-in ready. A large portion of buyers brought funds to the table that allowed them to buy down a new loan or in many cases, they paid cash from the sale of a previous home.”

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 35%, going from just 20 days in 2022 up to 27 days in 2023.  However, the largest portion of homes still sold very quickly, with 2,684 homes flying off the market in 10 days or less. 

December closed the year with a modest year-over-year decline in total sold volume and a modest decline in units sold.  Prices saw a small increase of 2% going from $415,000 in 2022 to $425,000 in December of 2023.  Orange County was a noticeable outlier in December, posting big gains in units sold and median price.  Orange saw its median price increase nearly 28% last month, going from $305,000 in December of 2022 to $389,000 in December of 2023.  Units sold also increased nearly 12% with 5 more homes sold this past December than in 2022. 

December of 2023 also saw the number of active listings plummet nearly 20% from December of 2022, with just 660 homes on the market at the turn of the year compared to 819 last year.  “Currently the ebb and flow of the real estate market has turned to a more predictable state,” comments Walther.  “Buyers are seeing a drop in rates and sellers can make plans for the next phase of their lives. While the days of rock bottom rates are gone, they are now trending down again from 2023. As a result, the expectation is that 2024 will see more improvement in the market. The Fredericksburg region is growing and housing needs will remain a concern. This is especially true in the entry level market.”

Realtors® expect similar market dynamics in 2024 as would-be sellers remain on the sidelines enjoying low mortgage interest rates.  Walther advises that “there is no time like the present” as prices are not expected to change significantly anytime soon.  “Having a qualified partner in this transaction will result in the confidence that buyers and sellers have made the right decision,” advises Walther.

 

FAAR Welcomes the 2024 Association Leadership Team

The Fredericksburg Area Association of REALTORS® (FAAR) celebrated the installation of its 2024 Board of Directors at Stevenson Ridge on December 7, 2023. The Association under the leadership of 2023 President Carol Sondrini of Berkshire Hathaway HomeServices PenFed Realty served more than 1,800 Realtors® working throughout the region with top-notch educational offerings, wide ranging networking opportunities, and strong advocacy to protect the real estate industry.

Sondrini presented the President’s Award to Immediate Past President Deb Ellis with Coldwell Banker Elite, thanking Ellis for her guidance and inspiring actions as a leader.

Looking ahead to 2024, incoming President Randy Walther of Nest Realty kicked off his year in style with a dazzling fireworks display, symbolizing his theme for the coming year, “FAAR-works”.  Walther expressed his gratitude for the trust and confidence placed in him by the FAAR membership. He emphasized the importance of collaboration, innovation, and shared efforts within the real estate community to achieve success in the coming year.  The highlight of the evening was the captivating fireworks show by Randy’s son, Jake Walther, commemorating the 2023 volunteers and cheering the 2024 Leadership Team on into the new year.

Walther’s leadership team was installed by 2024 Virginia Realtors® President, Tom Campbell.  Walther was installed as President by his broker, Sarah Stelmok of Nest Realty.

The 2024 FAAR Leadership team is:

President: Randy Walther, Nest Realty
President-Elect: Lauren Tate, Long and Foster Real Estate, Inc.
Vice President: Matthew Rathbun, Coldwell Banker Elite
Secretary: Gary Gardiner Jr., Coldwell Banker Elite
Treasurer: Tamar Myers-Moffatt, Samson Companies LLC
Immediate Past President: Carol Sondrini, BHHS PenFed Realty

Directors
LeAnn Black, 1st Choice Better Homes and Land, LC
Dawn Curry, Keller Williams Capital Properties
Abby Fitzsimmons, Coldwell Banker Elite
Dawn Josemans, Coldwell Banker Elite Property Management
Meghan Kala, Pathway Realty LLC
Denise Smith, Century 21 Redwood Realty
Affiliate Director Nick Bohn, Movement Mortgage

November sees same trends hold in local real estate market

As 2023 draws to a close, the Fredericksburg regional housing market is experiencing much of the same as the last few months. Prices continue to rise against a backdrop of falling demand, stubbornly low housing supply, and volatile interest rates. Total sold dollar volume fell nearly 14% in November, coming in at approximately $167.4 million in November 2023 compared to $193.5 million last year. Units sold were down nearly 13% year-over-year, with 412 homes transacted last November compared to 359 this year. Despite this, prices still rose nearly 4%, coming in at $439,900 compared to $424,715 last November.

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 29 days on the market this November compared to 27 days last year.

Inventory continues to be a challenge with the number of active listings at the end of November at 815 compared to 974 last year. New listings were also down this month with just 384 new listings coming on the market compared to 537 last year, a nearly 30% drop. New pendings which indicates the pace of future sales remained almost static with 2 more pending sales this November compared to last year. November of 2022 saw 400 pending sales at the close of the month compared to 402 pending sales this November, a less than 1% increase.

“For the month of November, we saw falling interest rates and an increase in buyer activity,” states FAAR Board of Director Abby Fitzsimmons. “Buyers are able to negotiate a bit, especially if sellers are in a situation where they need to sell. On the listing side of things, days on market have increased but home values are holding steady due to a continuous lack of inventory. Thanksgiving begins the typical “holiday season” where the real estate market slows down. If interest rates continue on their downward slope, we will see what December will bring.”

Prices continue to rise despite falling demand in housing market

The regional median home price was up again in October, despite shrinking demand heading into the winter season.  The median sold price settled at $440,000 this month compared to $425,000 in October of 2022, representing a nearly 4% year-over-year increase.  Units sold were down nearly 20%, coming in at 410 this October compared to 506 units sold last year.  Total sold dollar volume was down nearly 19%, posting approximately $195.5 million in sales for October of 2023 compared to $240 million in sales last year. 

Spotsylvania County was especially notable in October posting its second highest median sold price on record.  The month saw prices soar to $470,000 compared to $400,000 in October of last year.  This price was eclipsed only by August of this year when median price rose to $472,500. 

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 static compared to last October, coming in at 26 days.  Continued constrained supply is keeping days on market down since there isn’t much out there for active buyers to choose from.    

Inventory was also down again in October, finishing out the month with 900 active listings compared to 1,012 last year, an 11% decline.  New listings were down nearly 20% from last October with 514 homes coming on the market in 2023 compared to 638 last year.  New pending sales were down 10% in October, with 424 pending contracts compared to 470 last year.  Inventory continues to be challenged as homeowners experience the “lock-in” effect of having very low existing mortgage rates.  In the last 10 years, the average rate of mortgages in the Commonwealth fell from 5.2% to 3.8% as people bought homes or refinanced existing mortgages when rates sank to their lowest in history.  As rates have increased over the last year, there is a huge delta between what mortgage rate homeowners have right now and what rate they would get if they moved.  This delta locks them into their current properties as they wait for rates to come down before considering a move.

The tide may be turning on increasing mortgage rates as the Mortgage Bankers Association came out with their 2024 projections showing great news for 2024.  “The mortgage rate is predicted to be in the low 6% range by the fourth quarter of 2024,” states FAAR Board of Director Sherrie Shaw.  “Even better, 2025 rates are projected to be in the mid-5% range, which should really help in getting sellers off the sidelines.”  A moderation in mortgage rates will help motivate move-up buyers to list their homes and ease the inventory crunch that has plagued the market for years now.

 

Inventory Low, Prices High in the Local Housing Market

The weather might be cooling off, but local home prices certainly are not.  The region’s median sold price was up nearly 4% in September coming in at $435,000 compared to $420,000 last September.  Volume of sales continues its downward trend posting a nearly 17% decline from last year, with approximately $207.4 million in sales this September compared to $249.1 million during the same period last year.  High prices and lack of inventory continue to depress demand with units sold down another 21% this September with 552 homes sold last year compared to 435 homes sold this year. 

“The Fredericksburg area real estate market remains subject to various external factors, with interest rates being a prominent influence,” states FAAR Board of Director LeAnn Black. “We are seeing a marginal uptick in the number of days properties spend on the market and this presents a favorable window of opportunity for homebuyers. They aren’t merely searching for any home; they are seeking move-in-ready properties and are often willing to pay a premium for such convenience.”

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, remained similar to last year.  Houses were on the market for an average of 25 days this September compared to 23 days last year. 

Inventory was also down again in September, finishing out the month with 859 active listings compared to 1,038 last year, a 17% decline.  New listings were down a whopping 37% from last year with 491 homes coming on the market in September of 2023 compared to 775 last year.  New pending sales were down 26% in September, with 414 pending contracts compared to 557 last year.  Mortgage interest rates approaching 8% have would-be sellers holding off, contributing to the already low housing inventory.

“Current homeowners have been benefiting from their prevailing low interest rates, prompting many to remain on the sidelines,” continues Black.  “Home sellers could explore an alternative option: the average home equity in Virginia currently stands at approximately $147,000. Home prices in the area continue to rise steadily. By selling their current homes and utilizing their accrued equity to bolster their down payment on a new property, home sellers can potentially mitigate the impact of current interest rates. This strategic move could prove advantageous in navigating the evolving real estate landscape.”

Sell at Lake Anna in Louisa County? Take action against short-term rental restrictions!

Louisa County has spent the last 18 months crafting short-term rental regulations.  A working group recently reported a revised version of an ordinance to the Planning Commission.  This draft is the least restrictive of all that’s come out of these discussions.  This version would allow short-term rentals by-right with some restrictions in nearly every area of the lake.  The Planning Commission laid that version aside and put forth an alternative that would require an onerous Conditional Use Permit be secured for every residentially zoned parcel in the County that wants to operate a short-term rental.

That would mean that all of the hundreds of property owners who rent at the lake would be required to go through a lengthy review process at both the Planning Commission and the Board of Supervisors.  This process involves notifying adjacent property owners and hosting a public hearing where anyone can comment on whether that Conditional Use Permit should be issued to the property owner.  This requirement would be not be dependent on whether there have been any complaints in the past so responsible property owners would be swept up into this as well.

The Louisa County Board of Supervisors is set to hear presentations on both the working group proposal and the Planning Commission alternative on Monday, October 2, 2023 at 6:00pm in the Board of Supervisors Chambers located at 1 Woolfolk Avenue, Louisa.  Concerned parties can also send their comments via email to the Board at info@louisa.org.  

The Louisa County website dedicated to short-term rentals is linked in the button below.  You will find the full text of both proposals.  The staff will be recommending the working group draft and it is important that the Board hears strongly from residents and agents alike that they should REJECT the restrictive Planning Commission alternative. 

Also linked below is a letter sent from FAAR President Carol Sondrini in opposition to the Planning Commission alternative.  Feel free to copy that language and use it in your own email to the Board.  Let your voice be heard!

10/03/2023 UPDATE  We won!!!  The Board of Supervisors did not event take up the Planning Commission alternative requiring a CUP for every STR.

Staff is working on incorporating the amendments that were passed last night so once we have a clean copy of the ordinance, we will share it.  Thanks for everyone’s engagement on this issue!!

Celebrating Excellence: FAAR Honorees Shine at the 2023 Virginia REALTORS® Awards Event

Wednesday’s Virginia REALTORS® awards event in Richmond was a night to remember, filled with excitement and celebration. We are thrilled to announce and congratulate our very own Fredericksburg Area Association of REALTORS® (FAAR) members who received well-deserved honors and recognition. Their hard work, dedication, and outstanding contributions to the real estate community have not gone unnoticed.

Clay Murray – 2023 Virginia REALTORS® Good Neighbor Award

Clay Murray was honored with the prestigious 2023 Virginia REALTORS® Good Neighbor Award. This award recognizes individuals who go above and beyond to make a positive impact in their communities. Clay’s commitment to helping others and his dedication to improving the lives of those around him make him a true Good Neighbor. We are incredibly proud of you, Clay!


Sha Williams-Hinnant – 2023 Virginia CRS of the Year

Another shining star of the night was Sha Williams-Hinnant. Sha was named the 2023 Virginia Certified Residential Specialist (CRS) of the Year. This award recognizes excellence and expertise in residential real estate, and Sha has proven time and again that she is at the top of her game. Congratulations, Sha, on this incredible achievement!


Tamar Myers-Moffatt, 2024 Virginia REALTORS® Board of Directors


Drew Fristoe, 2024 Virginia REALTORS® Board of Directors

Tamar Myers-Moffatt and Drew Fristoe have been installed to the 2024 Virginia REALTORS® Board of Directors. This is a testament to their leadership, dedication, and commitment to advancing the real estate industry. We have no doubt that they will continue to serve with excellence.

Congratulations to all our FAAR honorees! Your achievements are a source of inspiration to us all, and we are proud to have you as part of our FAAR family. Thank you for your hard work, passion, and unwavering commitment to the real estate profession. Here’s to a bright future filled with continued success and accomplishments!

FAAR Endorses Candidates for Public Office

The Fredericksburg Area Association of REALTORS® (FAAR) announces endorsements for local Board of Supervisors and City Council races on the ballot for the November 7th general election.  The endorsed candidates represent areas throughout FAAR’s service territory including the counties of King George, Orange, Stafford and Spotsylvania, and the City of Fredericksburg.

“As active members of our local communities, REALTOR® and affiliate members of FAAR have a strong interest in this year’s elections.  I am pleased with the impressive slate of candidates that FAAR has endorsed.  If elected, these individuals will contribute much to our local communities by working to address issues like lack of available housing supply, traffic congestion, and infrastructure improvements,” stated FAAR’s 2023 Public Policy Committee Chair Matthew Young.  “FAAR strongly supports each of the candidates endorsed for public office and looks forward to working with these individuals at the local level.  The real estate industry is an integral part of our local economy, and it is vital that REALTORS® help elect candidates who understand those connections and are willing to work with our industry on issues of importance.”

FAAR has endorsed the following candidates:

City of Fredericksburg
Will Mackintosh (At-Large)
Kerry Devine (Mayor)

King George County
Carrie Gonzalez (Board of Supervisors, At-Large)

Orange County
Bryan Nicol (Board of Supervisors, District 5)

Spotsylvania County
Dr. Deborah Frazier (Board of Supervisors, Salem District)
Gerald Childress (Board of Supervisors, Chancellor District)

Stafford County
Howard Rudat (Board of Supervisors, Rock Hill District)
Tom Coen (Board of Supervisors, George Washington District)
Scott Mayausky (Commissioner of the Revenue

Regional Housing Market Shows No Signs of Price Cooling

The regional median home price was up again in August, with every locality seeing increases.  The median sold price settled at $450,000 in August of 2023 compared to $427,000 in August of 2022, representing a nearly 6% year-over-year increase.  Units sold were down 25%, coming in at 516 compared to 691 units sold last August.  Total sold dollar volume was down over 18%, posting approximately $256.2 million in sales for August of 2023 compared to $313 million in sales last year. 

“In the thriving real estate landscape of the Fredericksburg region, a fascinating interplay between factors is shaping the current market conditions,” states FAAR Board of Director Matthew Rathbun.  “The realm of rising home prices harmonizing with gradually increasing interest rates has unquestionably left its mark on the real estate landscape. We are observing a small, but notable rise in the months supply of available housing, along with sales prices commanding an average of 103% of the initial asking prices.”

The City of Fredericksburg posted its highest median sales price on record, coming in at $535,000 in August, up 31% from last year.  The City is a smaller market so more subject to fluctuations in the housing stock sold, but that number is still notable.  The City’s lowest median price in the last ten years came in May of 2015 with a median sold price of just $210,575. 

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, remained static from last year.  Houses were on the market for an average of 23 days this August compared to 22 days last year. 

Inventory was also down again in August, finishing out the month with 848 active listings compared to 979 last year, a 13% decline.  After trending up into the 1,000+ homes on the market for the second half of 2022, the market seems to have settled into a consistent 700-900 homes on the market.  This new normal is about 1,000 homes short of pre-2020 levels.  New listings were down 16% from last year with 603 homes coming on the market in August of 2023 compared to 722 last year.  New pending sales were down 12% in August, with 521 pending contracts compared to 591 last year. 

Rathbun continues, “Home sellers are exhibiting a degree of caution in the idea of selling their residences due to the desire to retain historically low interest rates they’ve secured over the past decade. This inclination is, in turn, contributing to the limited inventory of available homes.  Prospective homebuyers are navigating a landscape that elicits a sense of exhaustion because of the scarcity of options. While the trend of multiple offers persists for freshly-listed homes, the fervor and urgency seen in buyers over the last three years are undergoing a gradual reduction. As the year unfolds, it’s foreseeable that sales prices will maintain their slight upward trajectory due to the scarcity-driven competition, even as buyer activity tapers off as the year draws to a close. The convergence of an early start to the school season, a constrained housing inventory, and the upward movement of interest rates collectively suggest a notable slowing of the market’s momentum as we transition from the vibrant autumn season into the winter months.”

Regional Sales Price Keeps Increasing

The regional median home price was up again in July, with all but one locality seeing increases.  The median sold price settled at $462,450 this month compared to $438,200 in July of 2022, representing a nearly 6% year-over-year increase.  Units sold were down 20%, coming in at 502 compared to 631 units sold last July.  Total sold dollar volume was down nearly 21%, posting approximately $243.6 million in sales for July of 2023 compared to $308 million in sales last year. 

Caroline County posted its highest price on record, coming in at $385,000, an 18% increase from last year.  King George County posted a second-month straight loss in median price, which came in 16% lower than last year.  All other jurisdictions in the FAAR footprint saw strong price growth ranging anywhere from 4% in Stafford County up to 46% in the City of Fredericksburg. 

FAAR Board of Director and property manager Dawn Josemans comments, “The rental market has slowed down since the first quarter of this year.  We are no longer experiencing multiple applications when first listing a property for rent.  The supply is fairly high as properties are sitting on the market longer.  I am seeing an increase of days on market as each month passes.  However, rents remain higher than this time last year.  Home sales are still strong despite the time it is now taking to get under contract in an average situation.  Contracts are asking for higher amounts in seller concessions to the buyer than last year as well. The market is just more complex now due to the changing interest rates that are scaring off inexperienced buyers and sellers worried about the time it is taking to go under contract.” 

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 17% up to 21 days this July compared to 18 days last year. 

Inventory was also down again in July, finishing out the month with 822 active listings compared to 1,016 last year, a 19% decline.  New listings were down 32% from last year with 587 homes coming on the market in July of 2023 compared to 859 last year.  New pending sales were down 21% in July, with 539 pending contracts compared to 679 last year. 

 

Regional Housing Market Holds Steady as Summer Season Kicks Off

The regional median home price was up again in June, with all but one locality seeing increases.  The median sold price settled at $450,000 this month compared to $441,000 in June of 2022, representing a 2% year-over-year increase.  Units sold were down 16%, coming in at 625 compared to 748 units sold last June.  Total sold dollar volume was down nearly 12%, posting approximately $308.1 million in sales for June of 2023 compared to $349.1 million in sales last year. 

Stafford County saw its highest price on record in June of 2023, coming in at $525,000 for median price, a 5% increase from last year.  Stafford’s median price has increased $125,000 from just three years ago with a July 2020 median price of $399,000.  King George County was the only jurisdiction that saw a decline this month, but prices remain stubbornly high in that county as well.  The median price fell 6% in June of 2023 compared to last year, settling at $427,500 compared to $454,950 last year. 

FAAR Board of Director Kardin Lillis comments, “The past few months have been a bit of a roller coaster with interest rates and some uncertainty with Fed, which has spilled over into the real estate market.  The greater Stafford and Fredericksburg area is still showing a seller’s market with between one and two months of inventory.  We are seeing a slight bump in average days on market, and the return of home inspections, and even some seller closing cost assistance.  Overall, the market is strong and does not show signs of slowing as we head towards the end of summer.”  

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 64% up to 18 days this June compared to just 11 days last year. 

Inventory was also down again in June, finishing out the month with 851 active listings compared to 955 last year, a nearly 11% decline.  New listings were down 29% from last year with 652 homes coming on the market in June of 2023 compared to 918 last year.  New pending sales were down 18% in June, with 564 pending contracts compared to 685 last June. 

Median home price swings back up in May

The regional median home price was up in May, but individual localities saw wins and losses in the price department.  The median sold price settled at $454,950 this month compared to $436,000 in May of 2022, representing a 4% year-over-year increase.  Units sold were down 19%, coming in at 606 compared to 749 units sold last May.  Total sold dollar volume was down over 16%, posting approximately $287.6 million in sales for May of 2023 compared to $343.2 million in sales last May. 

Prices and units sold were all over the map for the local jurisdictions.  Caroline County and Colonial Beach saw double digit increases in units sold, but median price declines for May of 2023.  The City of Fredericksburg saw a 4% price decline and no change in units sold from last year.  Orange County was up over 14% in price, coming in at $388,950, but also saw a nearly 30% decline in units sold.  King George County saw a sizeable price increase at $456,000, an 18% increase from last May, while Spotsylvania County saw a 3% decline and a $429,900 price point.  Stafford County broke the $500,000 median price mark again in May, coming in with a 5% increase at $505,000, but also saw a 17% decrease in units sold.

FAAR Board of Director Lauren Tate comments, “The local market continues to be strong for homeowners who are selling their home.  This is an excellent time for home sellers to cash out, but it leaves home buyers at the top of their price range, paying higher interest rates, offering above asking price, and competing with multiple offers.  Buyers also often feel exposed by having to reduce the number of contingencies that would protect them in the past.  To compete with these multiple offers, home buyers often remove contingency protections such as home inspections and also offer to make up the difference on appraisal gaps.  While it is not recommended to remove these protections, buyers feel compelled to do so to better their chances of securing the winning bid.”

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 73% up to 19 days this May compared to just 11 days last year. 

Inventory was also down slightly again in May, finishing out the month with 788 active listings compared to 838 last year, a nearly 6% decline.  New listings were down 33% from last year with 1,024 homes coming on the market in May of 2022 compared to 688 this past month.  New pending sales were down 19% in May, with 668 pending contracts compared to 823 last May. 

Is the local real estate market turning a corner?

Could the region finally see a stop to ever increasing home prices?  April statistics show that it’s possible the tide is turning and that prices will finally cool after months of plummeting demand and high interest rates.  April of 2023 saw prices dip across the region for the first time since March of 2019.  The median sold price settled at $435,000 this month compared to $440,000 in April of 2022, representing a small 1% year-over-year decline.  Units sold were also way down, coming in at 414 compared to 731 units sold last April, a more than 43% reduction.  Those factors compounded to turn a nearly 42% decrease in total sold dollar volume with nearly $339 million in sales in April of 2022 compared to $198 million this year. 

While April’s regional price reduction is incredibly small at just 1%, it is notable considering how sticky price increases have remained in the face of falling demand.  However, the decreases were not evenly distributed across all jurisdictions.  Caroline, Spotsylvania, and Orange counties actually saw year-over-year price increases while King George County remained flat.  Stafford County, the City of Fredericksburg, and Colonial Beach experienced price decreases from last year.  The City saw a 3% decline with Stafford and Colonial Beach both seeing 2% declines.  While prices might have come off a little bit, they are still very high with Stafford’s median price close to $490,000, the City just shy of $450,000 and Colonial Beach at $280,000.  

FAAR Board of Director Gary Gardiner comments, “Overall the market continues to shift.  Buyers active in the market are seeing less competition with the reduced demand and can take advantage by negotiating more contingencies.  Sellers are seeing increased days on market, but prices remain high and sellers continue to command list price 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 93% up to 27 days this April compared to just 14 days last year. 

Inventory was also down slightly in April, finishing out the month with 717 active listings compared to 727 last year.  New listings were down 39% from last year with 1,057 homes coming on the market in April of 2022 compared to 646 this past month.  New pending sales were down 20% in April, with 615 pending contracts compared to 773 last April. 

More of the Same in March for Local Real Estate Market

FOR IMMEDIATE RELEASE
Contact:  Carol Sondrini  
540-373-7711
news@faarmembers.com

 More of the Same in March for Local Real Estate Market
High prices, falling demand continue

 Fredericksburg, VA (April 17, 2023) The following analysis of the Fredericksburg, Virginia area housing market has been prepared by the Fredericksburg Area Association of REALTORS® based on analysis of brightMLS multiple listing data. 
March 2023 saw more of the same in the local real estate market with falling demand, rising prices, and increasing days on market.  Total sold dollar volume was down nearly 30% coming in at approximately $204.6 million compared to more than $289.1 million in March of 2022.  Units sold decreased by nearly 31% from last year with 452 homes sold in March versus 652 last year.  Despite the continued dip in demand, prices rose more than 3% year-over-year, settling at $420,000 this year compared to $406,500 in March of 2022.

FAAR Board of Director Meghan Kala comments, “March really proved itself to be the kick start to the spring real estate market, and our buyers are out in full swing.  Many buyers who put the brakes on last year have chosen not to wait any longer on the volatile interest rates.  They are stepping out into the growing pool of consumers in a low inventory market.  Because of this, we’ve been seeing multiple offer situations, buyers waiving home inspections, and the return of appraisal gap coverages.  Smart and prepared sellers should be able to cash in on their advantages as we continue into the busy months ahead!”

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 106% up to 37 days this March compared to just 18 days last year. 

Inventory was up 23% in March, finishing out the month with 693 active listings compared to 562 last year.    New listings were down nearly 37% from last year with 948 homes coming on the market in March of 2022 compared to 602 this past month.  New pending sales were down nearly 36% in March, with 509 pending contracts compared to 795 last March. 

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About the Fredericksburg Area Association of REALTORS®
Founded in 1957, the Fredericksburg Area Association of REALTORS® (FAAR) is the trade association for more than 1,700 Realtor® and affiliate members serving the City of Fredericksburg, the Counties of Caroline, King George, Orange, Spotsylvania, and Stafford, along with the Colonial Beach area of Westmoreland County. Members also work in the surrounding counties of Westmoreland, Louisa, and Prince William and in Northern Virginia.  For more information about FAAR, visit www.faarmembers.com or contact Kim McClellan, Public Policy Director at kmcclellan@faarmembers.com or 540-373-7711.

Real estate market demand continues to cool

February 2023 saw more of the same in the local real estate market with falling demand, rising prices, and increasing days on market.  Total sold dollar volume was down 20% coming in at approximately $158.7 million compared to nearly $200 million in February of 2022.  Units sold was off 22% from last year with 358 homes sold in February versus 457 last year.  Despite the continued dip in demand, prices rose more than 2% year-over-year, settling at $419,900 compared to $410,000 in February of 2022.  Stafford County led the pack with its median price coming in just shy of $500,000. 

FAAR Board of Director Tamar Myers-Moffatt comments, “February was an interesting month.  Most of my clients and prospective clients were looking to either sell or rent their home.  It was as if everyone has a “looking ahead approach”, eagerly anticipating what the spring and summer markets will bring.  What I find promising is that sellers are getting back to normal with the effort needed to present their home on the market for sale.  From trash cleanouts to pre-listing inspections, sellers are making informed decisions about how to best position their homes to maximize their final sales 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 74% up to 40 days this February compared to 23 days last year. 

Inventory was up nearly 50% in February, finishing out the month with 649 active listings compared to just 446 last February.    New listings were down nearly 41% from last year with 664 homes coming on the market in February of 2022 compared to just 393 this past month.  While overall active listings continue to show increases from last year, lack of supply in the market continues to pose challenges as would-be buyers cannot find what they are looking for.  New pending sales were down nearly 33% in February, with 433 pending contracts compared to 645 last February. 

 

Real estate prices continue to rise while demand craters

January 2023 saw demand crater compared to the highs of early 2022, but prices continued to rise with sizable jumps in nearly every locality.  Units sold is the big story for this past month with more than 35% fewer homes changing hands than last year.  January 2022 saw 468 units sold while this January saw a drop to 303 homes.  Despite falling demand, prices continued to rise with a 6% year-over-year increase from $396,000 in January of last year to $419,900 in January of this year.  Total sold dollar volume was down 30%, going from approximately $202,6 million last year to $142,4 million this year.

The decline in demand was most pronounced in the counties of Caroline, Orange, and Stafford, with Caroline posting a 50% decline in homes purchased.  Supply continues to remain constrained so interestingly, prices skyrocketed in Caroline at the same time, posting a 35% gain from last January with a median price of nearly $400,000.  Orange County posted a 41% volume decline but also saw prices increase 9%.  Stafford County saw a whopping 42% decline in sales but still managed to post a 6% increase in median price.

FAAR Board of Director Randy Walther comments, “Overall the market is surprisingly stable.  If it’s on the market, it sells. Very few properties are slow to sell but buyers seem to have regained some leverage. There is more negotiation between the parties than there was six months ago, and sellers are more open to some concessions to close a deal. The market is not frantic and that is beneficial to both sides. Sellers seem to have more confidence that if they sell there will be something out there for them to buy. On the other hand, buyers are more confident that they will find a suitable home even if it’s not their first choice.  Interest rates have peaked and are starting to fall, which bodes well for an active spring market.”

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 46% up to 38 days this January compared to 26 days last year.  This is a big difference from the consistent lows we were seeing with averages of about 5 to 10 days on market for most of 2020 through mid-2022.  The additional time from those lows gives buyers a little more breathing room to make purchase decisions.

Inventory is up nearly 50% from the historic lows of the last few years, finishing out the month with 722 active listings compared to just 484 last January.    New listings remained nearly constant with a slight 3% increase over last January while new pendings declined by about 6%.  Walther continues, “Winter is traditionally a slower time in the market and spring seems to hold promise for both sides of the transaction. All indications point to an active market for the foreseeable future. Once again, it shows the resiliency and strength of the Fredericksburg region.”

2022 Real Estate Market Closes with High Prices, Declining Sales

2022 was a tumultuous year for the local real estate market with a fiery start to the year that began to moderate about halfway through due to rising interest rates and continued supply challenges.  “The housing market always fluctuates.  We had an intense seller’s market with lower inventory and record low mortgage rates last year, but that has settled out.  Buyers have more ability to negotiate now, and sellers are still enjoying higher prices, so it is still a strong market,” comments FAAR President Carol Sondrini.  While price growth remained robust throughout the duration of 2022, units sold decreased significantly which also dragged down total sold volume despite the high prices.

The year closed out with a total sold dollar volume of just over $3.3 billion which represents a more than 12% decrease over the year-end $3.8 billion total for red-hot 2021.  The market saw a nearly 12% year-over-year increase in median price, going from $382,000 in 2021 to $425,600 in 2022.  Units sold decreased more than 20%, finishing out the year at 7,284 units compared to 9,266 units sold in 2021.  Stafford and Spotsylvania counties saw volume reductions that accounted for nearly 1,500 of the 2,000 fewer units sold in 2022 versus 2021, but despite falling sales, prices soared in both places.  Spotsylvania County broke $400,000 for its annual median price for the first time ever, clocking in at $410,000 while Stafford County reached $485,000, a $40,000 increase over 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 more than 33%, going from just 15 days in 2021 up to 20 days in 2022.  However, most homes still sold in 20 days or less, making for some strong competition for well-priced homes.

December saw large decreases in total sold dollar volume and units sold, with both metrics declining by over 30%.  Despite falling sales volume, median price continued to climb.  The month closed out with about $196.6 million in total sold volume, representing a more than 33% decrease from last year.  Units sold clocked in at 438 compared to 689 sold in 2021, a more than 36% decline. Median price climbed to $415,000, a nearly 8% increase from the $385,000 price point of December 2021.  Every jurisdiction in the FAAR footprint saw units sold decline by more than 30% with Caroline County leading way with a nearly 50% decline from December of 2021.  Stafford County saw days on market jump 133% from one year to the next with homes spending an average of just 15 days on the market last December compared to 35 days this December.

While December of 2022 saw more than 200 additional homes on the market than 2021, supply remains an issue.  Active listings surpassed 1,000 a few times in 2022 but dipped to 819 in December paired with a more than 35% decrease in new listings from the year before.  In December of 2021, 550 new homes came on the market compared to just 355 this December.

While some harbor fears about market dynamics similar to 2008, Sondrini does not see parallels with the housing bust that impacted so many people.  Today’s buyers are well-qualified with stable mortgages, sizable down payments, and growing equity.  The market is shifting, but supply remains an issue and finding the right home at the right price will continue to be a challenge.  “I expect 2023 to be a good market and both buyers and sellers will need a well-informed, trusted Realtor® on their side,” states Sondrini.

November Housing Market Sees Plummeting Sales

The Fredericksburg regional housing market continues to show signs of a softening market, but prices remain stubbornly high in many jurisdictions.  Total sold dollar volume took a staggering 37% drop this November coming in at approximately $193.5 million compared to more than $305 million last November.  That decline was fueled by a more than 42% reduction in sales from the previous year with 715 homes being sold in November of 2021, compared with just 412 this November.  Despite cratering sales, median price remained high coming in at $424,715 which represents a nearly 8% year-over-year increase from last year’s median sales price of $395,000. 

“Volatile interest rates led to a decline in the number of buyers actively looking for homes,” comments FAAR Board of Director Abby Fitzsimmons.  “Fewer buyers looking led to more inventory available.  This shift has given buyers the leverage to win contracts with home inspections and even some seller subsidies, something that buyers have not seen in the previous crazy seller’s market.  Although buyers have some leverage, home values remain stable.  A few months ago, buyers were having to offer more than list price and waive appraisals or pay for appraisal gaps.  Instead of homes going above list price now, they are selling for list price with concessions.  Homes that are over-priced are sitting.  Interest rates fell slightly towards the end of the month, but this is coinciding with the start of the holiday season, so we’ll see if those buyers will start looking again or wait until after the holidays,” concludes Fitzsimmons.

While median price rose for yet another month at the regional level, individual jurisdictions are seeing both plummeting sales, and in some cases, falling prices.  Caroline and Orange counties, along with the City of Fredericksburg and the Town of Colonial Beach, all posted year-over-year price declines in November.  However, King George, Stafford, and Spotsylvania counties all saw price increases.  Spotsylvania County was a notable standout with a nearly 14% increase in median price in November going from $370,000 last year to $420,000 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, increased another 35% this October, coming in at 27 days versus 20 last year. 

Active listings jumped nearly 40% over last year with 974 homes on the market at the end of November 2022 versus 704 last year.  While the number of active listings is a constantly changing number, dipping below 1,000 homes available demonstrates how competitive even this changing market remains with low supply.  The market is still several hundred homes short of where it was at the end of 2019.  New listings were down again this month, with 537 new homes coming on the market compared to 668 last November.  New pendings remain down with 400 new contracts ratified in November compared to 636 last year, representing a nearly 38% year-over-year decline. 

FAAR Welcomes the 2023 Leadership Team

The Fredericksburg Area Association of REALTORS® (FAAR) welcomes the 2023 Leadership Team and Board of Directors. The Association under the leadership of 2022 President Deb Ellis served more than 1,800 Realtors® working throughout the region with top-notch educational offerings, wide ranging networking opportunities, and strong advocacy to protect the real estate industry.

Ellis presented the President’s Award to Immediate Past President Carrie Danko of Pathway Realty, thanking Danko for her guidance and inspiring actions as a leader.

Looking ahead to 2023, incoming President Carol Sondrini of BHHS PenFed Realty looks to continue the trend of strong leadership at the Association.  Sondrini inspired members to get involved with the association, continue to be strong advocates in the community, and to “let your voice be heard.”

Carol Sondrini and her leadership team were installed by Sherry Bailey of Century 21 New Millennium.

The 2023 FAAR Leadership team is

 

President                                   Carol Sondrini, BHHS PenFed Realty
President-Elect                       Randy Walther, Nest Realty
Vice President                         Dawn Josemans, Coldwell Banker Property Management
Secretary                                   Kardin Lillis, Weichert, REALTORS®
Treasurer                                   Lauren Tate, Century 21 Redwood
Immediate Past President   Deb Ellis, Coldwell Banker Elite  

Directors
Abby Fitzsimmons, Coldwell Banker Elite
Tamar Myers-Moffatt, Samson Properties
Gary Gardiner, Jr., Coldwell Banker Elite
LeAnn Black, 1st Choice Better Homes & Land
Matthew Rathbun, Coldwell Banker Elite
Michelle Caldwell Thompson, CTI Real Estate

 Affiliate Director
Sherrie Shaw, Summit Mortgage

FAAR would also like to thank departing Board Members for their service including Carrie Danko, Pia Contreras-Sanchez, Clay Murray, and Michele Freemyers.

Prices show no signs of stopping while demand continues to cool

Local Realtors® are feeling the change in the market, but prices do not show any signs of cooling as we head into the fall months.  Prices remain high and continue to climb despite moderating sales volumes. Many Realtors® report significant price reductions from original list prices, but that has yet to translate into reduced median price points.  The Fredericksburg regional market saw an 11% year-over-year increase in median price, coming in at $425,000 this October compared to $384,677 last October.  While prices keep rising, units sold posted another large decrease with a more than 30% decline from 736 homes sold last October to 506 homes sold this year.  That translated into a 21% decline in total sold dollar volume from nearly $305 million in sales last October compared to just over $240 million in sales this year.

FAAR Board of Director Clay Murray comments, “As our strong local market processes the external factors at play, including the recent elections and rising interest rates, we continue to see home values remain solid. Temporarily in this calmer market, more balance and accommodations within the contract are prevalent between buyers and sellers. This is a welcome shift from the past two years. Buyers now are having to make the choice between a wait-and-see approach for when rates come down or act now to enjoy a more balanced market while they can.”

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 another 44% this October, coming in at 26 days versus just 18 last year.  However, even these large percentage increases are adding just one or two days to the average and are still slightly below the historical 5-year average of 30 days.

Active listings continue to increase, jumping nearly 30% over last year with 1,012 homes on the market at the end of October 2022 versus 784 last year.  New listings were down again this month, with 638 new homes coming on the market compared to 802 last October.  New pendings remain down with 470 new contracts ratified in October compared to 772 last year, representing a nearly 40% year-over-year decline.  Even though demand is dropping quickly, the number of available homes remains low, especially in the under $400,000 price bracket, creating competitive situations that could continue to buoy prices despite falling demand.     

Prices keep going up while demand for housing cools

The local real estate market continues its march toward moderation as demand continues to fall but prices are still climbing compared to last year.  Total sold dollar volume was down more than 23% in September of 2022 going from more than $325.5 million last September to just over $249.1 million this year.  Units sold decreased nearly 30% with more than 200 less homes sold this year compared to last.  There were 785 sales in September of 2021 compared to 552 for this September.  Median price remains high, clocking in at $420,000 versus $378,000 last September, representing a nearly 11% year-over-year increase. 

“The market is a roller coaster right now,” states FAAR Board of Director Pia Contreras-Sanchez.  “Every Monday I wait for the good or bad news on the release of new mortgage rates.  It is difficult to explain to buyers that we must look for houses in a lower price point as their money doesn’t go as far with higher mortgage rates. But there are bright spots in the market for buyers.  We are seeing more home inspections, seller concessions, and price reductions.  For sellers, even though the market is moderating, most have built good equity over the past few years.  It really is a good time to buy or sell!”

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 another 80% this September, coming in at 23 days versus just 13 last year.  However, even these large percentage increases are adding just one or two days to the average and are still slightly below the historical 5-year average of 30 days.

Active listings continue to increase, jumping more than 17% over last year with 1,038 homes on the market at the end of September 2022 versus 884 last year.  Breaking the 1,000 active listings threshold on the market places inventory close to 5-year averages but still presents a very competitive market, especially in the price brackets of $400,000 and under.  New listings were down again this month, with 775 new homes coming on the market compared to 873 last September.  New pendings remain down with 557 new contracts ratified in September compared to 788 last year, representing a nearly 30% year-over-year decline.  

Local 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.  

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.”  

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.”

Has the local housing market reached its peak?

The local real estate market in May showed signs of cooling, with the largest year-over-year decline in units sold since 2017 and the first drop in total sold volume in years.  While demand may be abating due to rising interest rates, inflation pressures, and economic uncertainty, prices continue to skyrocket in many markets.  May closed out the month with a more than 6% decrease in total sold dollar volume, going from approximately $365 million in May of 2021, down to just over $343 million in May of 2022.  Fueling the decline in total volume was a steep decline in market activity.  Units sold declined nearly 16%, going from 889 in May of 2021 and declining to 749 in May of 2022.  At the same time that demand is waning, median sold price posted another big year-over-year jump, clocking in at $436,000 in May of 2022 compared to $390,000 in May of 2021. 

FAAR Board of Director Lauren Tate comments, “The May 2022 market is seeing a slight shift.  While inventory remains low, it is starting to become a more level playing field for buyers, impacting demand due to the increase of mortgage rates.  In previous months, sellers held the cards pulling multiple contracts, driving over list price offers to exclude enticing key contract elements such as waived appraisals, appraisal gaps, no contingencies and no seller contributions to sway the seller to pick the best offer.  Today we are seeing inventory remain on the market slightly longer with price adjustments, which is confusing those sellers who have expectations that the market will mimic previous months. The market will continue to level out due to the uncertain economic changes.”

The decline in units sold was seen in every jurisdiction in the FAAR footprint.  Orange County was down the least from last year with a 6% decline while Caroline County took the biggest hit with a nearly 42% decline in units sold.  These declines translated into a decrease in total sold dollar volume in all areas but one.  Spotsylvania County managed to hold onto a near identical sales volume as May of 2021, with a scant 0.08% increase.  Despite decreasing sales volume, prices are staying high in all of our jurisdictions.  Caroline County saw its third highest median price on record coming in at $320,000 while Spotsylvania’s median price skyrocketed over 21%, coming in at $443,000 in May compared to $365,505 last 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, stayed flat from last year at 11 days.

Active listings have shown year-over-year growth since July of 2021 with May posting another 46% increase in homes on the market.  There were 838 homes on the market at the end of May compared to 573 last year.  New listings were down this May by about 15%, with 1,024 new homes coming on the market compared to 1,200 last May.  New pending sales were down over 23% and overall pending sales are down 30%, indicating that continued supply challenges

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Regional home prices continue to soar in April

The local real estate market broke more records in April of 2022 with the regional median sales price and two jurisdictions seeing all-time highs.  The month closed out with a nearly 18% increase in total sold dollar volume, going from approximately $288 million in April of 2021, t0 nearly $339 million in April of 2022.  Median sold price was up a whopping 15% year-over-year, clocking in at $440,000 in April of 2022 compared to $384,075 in 2021.  That beat the all-time high record of $410,000 set in February of this year.  Units sold settled at 731 in April of 2022, compared to 719 in April of 2021, an increase just shy of 2%. 

FAAR Board of Director Gary Gardiner comments, “The April market continued to be highly competitive for buyers and extremely positive for sellers. Multiple offers, escalating sales prices, and waived contingencies are some of the benefits sellers are evaluating to make the best decision.”

The stark rise in prices was very apparent in April with Stafford and Spotsylvania counties breaking previous price records and the other jurisdictions not far behind.  Spotsylvania County posted an all-time high price in April 0f 2022 of $409,999 while Stafford County came in at a staggering $499,825.  Gardiner continues, “Despite the recent increase in mortgage rates, real estate professionals are still experiencing more highly qualified buyers in the market than the number of homes available for sale. Low home supply and high buyer demand continues to be the driving force to our competitive market.”

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 flat from last year at 14 days.  That reversed a months-long trend of increasing days on market that started in September of 2021.  Despite six months of increasing sit time on the market, overall days on market is still very low by historical standards.  The five-year average for April is 27 days on the market compared to the nearly half of that this April at 14 days.   

Active listings have shown year-over-year growth since July of 2021 with April posting another 44% increase in homes on the market compared to last year.  There were 727 homes on the market at the end of April compared to 505 last year.  While that increase is good for buyers, there were still nearly 1,000 fewer homes on the market this year than just three years ago in April of 2019.  New listings were down this April by about 12%, with 1,057 new homes coming on the market compared to nearly 1,200 last April.  New pending sales were down nearly 23% and overall pending sales are down nearly 30%, indicating that continued supply challenges and increasing interest rates could be dampening demand.

 

FAAR presents 2021 Awards

The Fredericksburg Area Association of REALTORS® (FAAR) recognized 2021 award winners who have set themselves apart in the industry through their commitment to professionalism, education, and customer service. The event took place at the “Breaking Barriers” REALTOR Awards Brunch on April 20th, 2022 at the Riverside Center for Performing Arts. Approximately 110 members were in attendance for the festivities, which included an awards ceremony and featured speakers.

Featured speakers included Mayor Lawrence Davies and Cleo K. Coleman who shared anecdotes and inspirations from the many challenges they have faced throughout a long history in the Fredericksburg area. Listeners were encouraged to continue strengthening our communities by fighting for inclusion and staying engaged in local organizations.

Attendees also heard from REALTOR® Huda Maltbie, Century 21 New Millennium as she shared her family’s journey and struggles as immigrants from India and the transition to becoming U.S. citizens in the face of discrimination.

Presented Honors included Professional Honor Role, Educator of the Year, the Melanie Thompson award, Rookie Salesperson of the Year, REALTORS® Choice, Manager of the Year, and the Faces of FAAR Diversity Scholarship. In addition, 12 members were recognized for achieving the Professional Honor Role for 2021. 

The Professional Honor Roll spotlights members who have made contributions to the real estate industry, the Association, and the community.

 

Award Recipients

2021 Professional Honor Roll Achievers

Valerie Dellandre, Century 21 New Millennium

Linda Dort, Century 21 New Millennium

Drew Fristoe, Coldwell Banker Elite

Allison Graves, Coldwell Banker Elite

DeAnna Hamn, 1st Choice Better Homes and Land

Janet Holt, Holt for Homes

Lynn Lenahan, 1st Choice Better Homes & Land

Latana Locke, Coldwell Banker Elite

Sharon Shade, RE/MAX Allegiance

Lauren Tate, Century 21 Redwood Realty

Penny Traber, 1st Choice Better Homes & Land

Sha Williams- Hinnant, 1st Choice Better Homes & Land

 

Abby Fitzsimmons of Coldwell Banker Elite Stafford, 2021 Melanie Thompson Award

Matthew Rathbun of Coldwell Banker Elite, 2021 Educator of the Year

Mary Lou Blue of RE/MAX Allegiance, 2021 REALTORS® Choice

Anna Torres of Long and Foster, 2021 Rookie of the Year

Robin Marine of Coldwell Banker Elite Downtown Fredericksburg, 2021 Manager of the Year

Chasity Richardson of C21 Redwood, Faces of FAAR Diversity Scholarship

Regional Home Prices Continue their Meteoric Rise

Despite rising interest rates and continued stiff competition, March proved another very strong month in the local real estate market.  The month closed out with a nearly 13% increase in total sold dollar volume, going from approximately $256.6 million in March of 2021, t0 more than $289.1 million in March of 2022.  Median sold price was up more than 11% year-over-year, clocking in at $406,500 in March of 2022 compared to $364,950 in 2021.  That’s a nearly $100,000 increase since March of 2020 when median price stood at $316,000.  Demand for homes is not falling off, but it’s not increasing either with sales this March nearly identical to last year.  Units sold settled at 652 in March of 2022, compared to 650 in March of 2021, a less than 1% increase.  With demand already red hot across all local markets, monthly sales still well-outpaced the 5-year average of 575 units sold in a typical March.

Rising prices are also not just centered on Stafford County or the City of Fredericksburg.  Caroline County, long a bastion of affordability in this region, reached a median price of $350,000 in March.  It was $228,000 just two years ago.  King George County reached a median price of $408,000 in March.  Just two years ago, that median price was $280,000.  Spotsylvania County reached $400,000 median price for the first time ever in March.  In 2020, the median price was $307,000.  And finally, Colonial Beach saw a median price of $315,000 this past month, while it was just $200,000 two years ago. 

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 20%, but still remains a very short 18 days.  In March of 2021, it was just 15-days so there is a slightly longer sit time for some homes on the market. 

Inventory still remains below historical averages but has seen a noticeable uptick.  There were nearly 50% more homes on the market this March compared to last year.  At the end of March of 2021, there were just 383 homes for sale, which translates to buyer demand stripping through the available supply in just two weeks.  At the close of this March, there were 562 homes on the market, a big improvement, but that number is still way off the 5-year average of 982 homes for sale in a typical March.  New listings were flat compared to last year with 948 new homes coming onto the market in March with most of those cycling off before the close of the month.  There were 944 new listings last March so the market saw a less than 1% increase.  New pendings were down nearly 10%, with 795 ratified contracts this March compared to 883 last March. 

FAAR Board Member Carrie Danko sees the impact this market is having on buyers regularly in her real estate practice.  “The good news in the market is that there seems to be more homes for my buyers to see. The bad news is there continues to be a large pool of buyers competing over the same listings. Great buyers with exceptional credit and money saved to achieve their dream of homeownership are competing with 10, 20, and even 30 offers! That, coupled with the rising interest rates, is certainly creating discouragement.  Setting expectations for prospective buyers and a little bit of patience are key in this competitive market.”

February real estate market breaks price record

February 2022 was a record-setting month with the area’s median price eclipsing $400,000 for the first time in history.  The local market continues to be very challenging for buyers and for sellers who don’t have a well-defined next step.  FAAR Board Member Michele Freemyers states, “January and February closings numbers were down due to an overall decrease in the number of units sold. Monthly contracts bear the signs of a very difficult buyer’s market, with waivers of financing contingencies, appraisals, and home inspections.  Waivers of termite, well and septic inspections are even becoming the norm along with a significant number of cash buyers.”

Sold dollar volume was up in February nearly 10%, jumping from approximately $181 million last February to nearly $200 million this year.  The increase in volume was fueled by a more than 17% increase in median sold price, with homes in February of 2022 seeing a median price of $410,000 compared to $349,950 in February of 2021.  That is a doubling in median price from 10 years ago.  In March of 2012, the median sales price was $195,000, and had increased from just $159,900 ten years before that.  The swift pace of price increases is more than many buyers can handle, which led to a year-over-year decrease in units sold this February compared to last year.  In February of 2021, 487 houses were transacted compared to 457 this year, a more than 6% drop. 

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 44% with houses averaging 23 days on the market in February 2022 compared to the incredibly low 16 days in 2021.

Overall active listings continued to show modest improvement with 23% more homes on the market this February compared to last year, but these are still very low numbers.  In February of 2021, there were just 360 homes for buyers to choose from and the market closed this February with 446 homes.  For comparison, there were 1,140 homes for sale in February of 2020 and many agents would have said that was not providing adequate choice for a lot of buyers.

Adding to challenges in the market are many of the negotiable terms that are being agreed upon by buyers and sellers.  “The other concerning trend is many contracts allow far less than the standard thirty days for settlement,” continued Freemyers.  “Often less than twenty-one days are given from ratification to closing, with significant rent back time periods up to sixty days. These shortened timelines put increased stress on the overall transaction, and the participants involved, as many sellers have back-up contracts with higher sales prices, so extensions of settlement dates are unlikely.”  All of these challenges are leading to reduced units sold and longer days on market as buyers are balking at the strenuous nature of transactions in the current climate and the steadily increasing prices. New pending contracts were up in February indicating that demand is still high, but overall pendings were down nearly 9% showing that buyers are feeling frustrated and some are pulling back.

Low Inventory Continues to Plague Housing Market

January 2022 continues to see the same issues that have been plaguing the local real estate market for many months, namely low supply.  A lack of choice in the market coupled with steadily rising prices and a brutal blast of winter led to decreased sales in the month and a significant decline in pending sales.  Despite the factors working against the market, total sold volume and prices both climbed handily.  January closed out with a total sold dollar volume of approximately $202.6 million which represents a nearly 10% increase over January of 2021.  The market saw a significant 15% year-over-year increase in median price, going from $345,000 in January of 2021 to just shy of $400,000 at $396,000 this January.  Units sold decreased for only the second time since May of 2020, coming in at 468, a nearly 4% decrease from last January’s total of 486. 

FAAR Board of Director Randy Walther comments, “This winter has seen the market become lean and mean. Homes for sale have fallen to record lows in terms of supply. While some of this is seasonal, a portion is outright fatigue from the stress of the past year or two. It’s difficult for some sellers to motivate themselves to prepare their home for the market when they realize that finding a new place could be a long, drawn-out endeavor. However, if they do move forward, they are more often than not seeing good returns for their effort. Current buyers, on the other hand, seem to be active but not fixated on a quick result. There may be fewer people looking in the winter so it’s not as hectic of a market. Realtors® are doing a good job of helping both sellers and buyers understand the present landscape.”

Most jurisdictions in the FAAR footprint saw a decrease in units sold with the City of Fredericksburg leading the way at a 40% reduction.  January of 2021 saw 43 sales, compared to 26 this year.  Caroline County also saw a steep decline, with over 27% fewer sales than last January.  Stafford County saw a modest increase of 9% but two of our most rural jurisdictions, Orange County and Colonial Beach, saw sizable increases in units sold at 20% more and 38% more respectively, compared to last January.  Orange County saw 63 sales this January compared to 53 last year, while Colonial Beach had 22 this year compared to 16 last 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 30% up to 26 days.  While it’s still a brief amount of time considering historical real estate trends, it is still double the number of days at the lowest part of the market from July of 2021, which stood at just an average of 1o days on the market. 

Inventory remains low, but was still up 22% from last year’s historic bottom of supply.  There were just 396 homes on the market at the end of January 2021.  That number ticked up to 484 homes at the end of this January, but the good news was tempered by a more than 23% reduction in new listings coming on the market.  In January of 2021, 600 sellers put their homes up for sale.  In January of 2022, just 461 new listings came onto the market. 

FAAR Releases 2021 4th Quarter Home Sales Report

Fredericksburg Area Association of REALTORS®
Market Report Key Takeaways

Economic Conditions
  • Economic conditions in Virginia continued to improve in the fourth quarter, with broad-based job
    gains and another drop in the unemployment rate. The employment picture also improved in
    the Fredericksburg region, with the unemployment rate falling to near pre-pandemic levels.
  • Despite steady economic progress, consumer confidence remains weak, as individuals and
    families face rising prices and a surge in COVID-19 cases. The measure of expectations of future
    economic conditions fell to a 16-month low in December 2021.
  • Mortgage rates began to tick up at the end of 2021. Persistently high inflation will prompt the
    Federal Reserve to raise the federal funds rate in 2022, which will push mortgage rates even
    higher in the months to come.
Housing Market Conditions
  • There were 2,319 homes sold in the FAAR region during the fourth quarter. Sales declined slightly
    compared to a year ago, the first year-over-year drop in sales in the region since early 2019.
  • Despite cooler sales activity, home prices continued to rise quickly in the FAAR area. The fourth
    quarter median sales price was $380,000, which is 12% higher than a year ago, a gain of $40,000.
  • Inventory fell again in the FAAR region. There were just 671 active listings in the region at the end
    of the fourth quarter, 12% fewer listings than a year ago. There is less than a month’s supply of
    inventory in the FAAR market.

High Prices, Continued Low Supply Close Out the 2021 Housing Market

 

While many Realtors® have experienced moderating of the real estate market in recent months, 2021 as a whole was a more frenetic market than its record-setting predecessor of 2020.  “2021 saw the trend continue of extremely low inventory coupled with very strong buyer demand, leading to a chaotic and often disappointing market for many local homebuyers,” states 2022 FAAR President Deb Ellis.  The first half of the year was marked by intense bidding wars with home inspections falling by the wayside, buyers bringing serious cash to the table when homes didn’t appraise, and multiple offers as the norm.  These dynamics all conspired to make 2021 another record-breaking year in the real estate market. 

The year closed out with a total sold dollar volume of nearly $4 billion which represents a more than 26% increase over the year-end totals for already red-hot 2020.  The market saw a nearly 13% year-over-year increase in median price, going from $339,520 in 2020 to $382.000 in 2021.  Units sold increased over 11%, finishing out the year at 9,266 units compared to 8,310 units sold in 2020.  Stafford County led the pack with a 2021 median price of $445,000, a staggering $135,000 increase from just five years ago. Rural localities also saw significant increases with Orange County seeing a nearly 40% increase in units sold in 2021, with 990 sales.  That represents a more than 45% increase from just 2 years ago when Orange closed out the year with 677 closed sales. 

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 a whopping 48% with houses averaging a mere 15 days on the market in 2021 compared to 29 days in 2020.  More than 68% of homes sold in just 10 days or less.  The vast majority of sales were of 3 or more-bedroom single family homes, with that segment making up nearly 82% of the total units sold. 

“The super-charged real estate market of 2021 resulted in many disappointed buyers as there were not enough homes to go around.,” continues Ellis. “Many buyers temporarily exited the market to wait for calmer times.  However, we saw some moderation in the market in late 2021 and while the market remains very competitive, we did see a slowdown more in line with seasonal trends.”

December saw sold dollar volume and median price increase, but units sold was flat with 6 less houses selling in December of 2020 versus December of 2021.  The month closed out with over $294 million in total sold volume, representing a 13% increase from last year.  Median price climbed to $385,500, an 11% increase from the $347.222 price point of December 2020.  Units sold clocked in at 689 compared to 695 sold in 2020.  However, December is a historically weaker home sales month and December of 2020 was up over 44% from 2019, so 2021 held strong compared to historical averages. 

While December of 2021 ended the year with 13% more listings than 2020, it wasn’t enough to change the narrative of consistent constrained supply.  December of 2020 saw the lowest level of listings for any December in recent years with just 511 homes to choose from.  In December of 2019, a time when some would say the market was already having supply issues, there were over 1,200 homes for sale.  December of 2021 closed with 579 homes available for purchase.  Pending sales also continued to be strong with a 7% increase over last year. 

Ellis points out that the highly competitive home sales market also drives up prices in the rental market as sellers cash in for big bucks and then elect to rent until they find their next place.  Many renters are also staying put waiting for the market to settle down before buying a home, which leads to greater competition in rental rates.  As a result, prices increase which squeezes out renters seeking more moderately-priced options.  With rumored Federal Reserve rate hikes and the hope for a functional end to the pandemic, 2022 remains a very cloudy crystal ball.  “Now more than ever, it is vital to work with a Realtor® who is an expert in our local market and can serve as a beacon of calm while navigating this turbulent market,” adds Ellis. 

Local Home Prices Up Big in November

While some normalcy continues to return to the market, prices increased significantly in November with the area housing market flirting with a $400,000 median price.  Total sold dollar volume increased by 22% fueled by a more than 16% rise in median sold price and a nearly 8% increase in units sold over last November’s equally hot market.  Total sold dollar volume settled at approximately $305.6 million this November compared to $249.7 million in November of 2020.  Median sold price came in at a near-record high $395,500, a more than 16% year-over-year increase from 2020.  In November of 2021, 715 homes were transacted versus 664 in November of last year, representing an 8% increase.

“Things are slowing down, but not in the traditional sense,” states FAAR Board of Director Kardin Lillis.  “We are still seeing a very fast-paced market, especially for accurately priced, well-maintained homes, but the days of large escalation clauses and dozens of offers seem to have passed.” 

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, actually increased for first time since September of 2019.  Average days on market rose from 16 days in November of 2020 to 20 days on market this year, representing a 25% year-over-year increase. 

Overall active listings were up 23% this November compared to last year, with 704 homes available in the entire FAAR footprint at the end of November versus just 572 last year.  New listings were up nearly 4%, with 668 homes coming on the market this November compared to 643 last November.  New pending sales held steady with a slight 1% decrease, showing that buyer demand remains strong as we return to more normal market conditions.

FAAR installs 2022 Leadership Team and presents 2021 Awards

 

The Fredericksburg Area Association of REALTORS® (FAAR) installed its 2022 Leadership Team in a ceremony at Stevenson Ridge on Thursday, December 9, 2021. Despite the year’s many challenges, the Association under 2021 President Carrie Danko remained committed to serving the more than 1,800 Realtors® working throughout the region with top-notch educational offerings, wide ranging real estate services, and strong advocacy to protect the real estate industry.

Looking ahead to 2022, incoming President Deb Ellis of Coldwell Banker Elite plans to continue the trend of strong leadership at the Association. “We are very proud to celebrate the award recipients and FAAR leadership at this annual event. We have a team in place that is excited to get to work for the members of the association and people in our community,” stated Ellis.

Incoming President Deb Ellis and her leadership team were installed by Kevin Breen, broker of Coldwell Banker Elite.

Several awards were also given out, including:

Realtor® Emeritus
Recognizing members who have attained 40 years of continuous membership in FAAR and have served at the National Association of REALTORS.

Melanie Thompson
Century 21 Redwood Realty

Silver Circle Awards
Recognizing members who have attained 25 years of continuous membership in FAAR.

Sheila Johnson, IONE Realty
Connie Mulgrew, Century 21 Redwood Realty
Crystal Norbeck, Valere Real Estate
Andre “Rick” Perry, eXp Realty
Sharon Shade, RE/MAX Allegiance
Maureen Villalva, Coldwell Banker Elite

Affiliate of the Year
Recognizing the FAAR affiliate member that provides exceptional service to FAAR, its members,
and the general public.

Mike Lee
Summit Mortgage

Good Neighbor Award
Recognizing members who give back to the community.

Maribel Barker
Fawn Lake Real Estate

Spirit Award
Recognizing the participation of a member who supports FAAR behind the scenes.

Anne Overington
Century 21 Redwood Realty

Raising the Bar Award
Recognizes the member who has gone above and beyond to improve their knowledge of the business and professional standards.

Sha Williams-Hinnant
1st Choice Better Homes and Land

Hall of Fame Award
Recognizes a member with extensive leadership history and service at FAAR

Sherry Bailey
Century 21 New Millennium

Icon Award
Recognizes members who have made a significant mark on the real estate profession

Nick Calamos
Coldwell Banker Elite

The 2022 FAAR Leadership team is

President Deb Ellis, Coldwell Banker Elite
President-Elect Carol Sondrini, Coldwell Banker Elite
Vice President Randy Walther, Nest Realty
Secretary Dawn Josemans, Coldwell Banker Elite
Treasurer Lauren Tate, Century 21 Redwood
Immediate Past President Carrie Danko, Pathway Realty

Directors
Pia Contreras-Sanchez, Prime Realty
Abby Fitzsimmons, Coldwell Banker Elite
Gary Gardiner, Jr., Coldwell Banker Elite
Kardin Lillis, Weichert, REALTORS®
Clay Murray, Pathway Realty
Matthew Rathbun, Coldwell Banker Elite
Affiliate Director
Michele Freemyers, Ekko Title

 

 

 

Fredericksburg-area Home Sales Slow Slightly in October

The Fredericksburg-area real estate market showed indications of cooling with the first year-over-year decline in units sold since the start of the pandemic.  Units sold posted a more than 3% decline this October versus last year with 736 home sales in 2021 compared to 760 in 2020.  Those declines were nearly universal across the FAAR footprint with Spotsylvania leading the way with a 15% decline in sales.  Orange County was a noticeable outlier with a sizeable increase in units sold.  In October of 2020, Orange County saw 53 sales.  In October of this year, the County posted 90 sales, representing a 70% year-over-year increase.

“The market we experienced in 2020 and first two quarters in 2021 was a sellers’ market on steroids,” comments FAAR Board of Director Clay Murray. “There was a huge imbalance between supply and demand providing incredible opportunities for sellers with crazy intense competition among qualified buyers. That being said, it’s not sustainable and what we’re seeing is a healthy calming, not cooling, of that intensity — from crazy to hot. It’s still a very strong and solid sellers’ market for appropriately priced homes as some normalcy comes into play between buyers and sellers. Home inspections and appraisal contingencies are more prevalent and that’s a good thing for all. We all know finding some balance and being healthy is vital, the same thing goes for our local real estate market.”

Total sold dollar volume increased nearly 5%, settling at approximately $305 million this October compared to $291 million last year.  Median price saw a more than 9% increase, going from $352,000 in October of 2020 to $384,677 in October of 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, fell 10% with houses averaging 18 days on the market in October 2021 compared to 20 days in October 2020.  The reduction in DOM is the smallest metric the market has seen since July of 2020 when DOM declined 9%.  The local market has consistently experienced double digit declines in days on market for most of the last two years.

While new listings were down nearly 10% this October compared to last year, overall active listings are up over 20%.  There were 653 active listings at the end of last October compared to 784 this year.  Last year saw 890 new listings come onto the market in October, compared to 802 this year.  New pending sales are down nearly 4%, indicating a slower pace of sales headed into the holiday season.

FAAR Releases Q3 Housing Report

As the third quarter of 2021 came to a close, the regional real estate market saw a 13% increase in median price, 187 more home sales than the same time last year, and a 28% increase in active listings from a year ago. Get all the details along with great graphics for you to use with your clients by accessing the report below.

More Normalizing in the Fredericksburg-area Real Estate Market

The local real estate market continues to experience high transaction volume, inventory challenges, and rising prices, but those increases are moderating and significantly more inventory is available for buyers.  As summer faded into early fall, inventory was up a whopping 21% from last September, but still at historic lows with just 1.15 months of supply available.  Total sold dollar volume was up 18% from last year, coming in at approximately $325.5 million this September compared to $275.9 million last September.  The region’s median price increased nearly 13% year-over-year going from $335,000 in September of 2020 to $378,000 in September of this year.  Units sold increased 4% with 785 homes sold this September compared to 755 last 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, fell nearly 41% with houses averaging just 13 days on the market in September 2021 compared to 22 days in September 2020. 

September saw continued good news on the supply front with active listings up over 45% from the scant offerings to be found last September.  New listings coming onto the market yet again beat the five-year average and saw nearly 7% more listings than last year. Homebuyers had 884 homes to choose from at the end of this September compared to just 609 homes available last year.  FAAR Board of Director Carol Sondrini states, “Due to a slight slowdown in the market, now is the perfect time for first-time homebuyers to get back into house hunting.  Although the market is still strong, they have a much better chance to be competitive with VA, FHA, and USDA financing along with regular home inspections and the possibility of seller concessions.”

2022 Board of Directors Election Results

2022 FAAR Board of Directors announced

Election Results

2022 Leadership

Electronic balloting began August 17, ended September 15 at noon

Results were announced at a general membership meeting after the virtual education originally scheduled for the FAAR trade show. 

 

President                  Deb Ellis, Coldwell Banker Elite         

President-Elect        Carol Sondrini, Coldwell Banker Elite        

Vice President          Randy Walther, Nest Realty

Secretary                  Dawn Josemans, Coldwell Banker Elite                    

Treasurer                  Lauren Tate, Century 21 Redwood                    

 Immediate Past President  Carrie Danko, 1st Choice Better Homes & Land

Directors

Abby Fitzsimmons, Coldwell Banker Elite

Gary Gardiner, Jr., Coldwell Banker Elite

Matthew Rathbun, Coldwell Banker Elite

(Continuing from the 2021 Board- Clay Murray, Pathway Realty, Pia Contreas Sanchez, Prime Realty, Kardin Lillis, Weichert, REALTORS®)

Affiliate Director

Michele Freemyers, Ekko Title

FAAR Endorses Phil Scott for Virginia House of Delegates

The Fredericksburg Area Association of Realtors® endorses Phil Scott for the Virginia House of Delegates 88th district.  The seat is being vacated by the retiring Mark Cole and features a three-way race.  Phil Scott met with members of FAAR’s Public Policy Committee on August 3 and the group was very impressed with his willingness to learn about the issues facing his constituents and his understanding of the importance of real estate to the regional economy.  

FAAR looks forward to working with Phil on issues of importance to the industry when he gets to the General Assembly .  

Fredericksburg-Area Real Estate Market Continues to Normalize

While it’s not a buyer’s market yet, the Fredericksburg-area housing market continues to show indications of normalizing.  August still posted very robust market numbers, but that is tempered by rising supply and slight reductions in future demand.  Sold dollar volume was still up nearly 29%, coming in at approximately $362 million in August of 2021 compared to $281.3 million last year.  The increase was fueled by a nearly 16% jump in units sold, with 755 homes changing hands in August of 2020 compared to 876 this August.  Median price held steady from July at $390,000, representing a more than 11% year-over-year price increase from August 2020’s level of $350,000.

Many market indicators are not captured in the transaction details of a home sale.  It was common during the most intense months of buyer demand to see waiving of home inspections and agreements to bring cash when appraisals came in low.  Those practices seem to be ebbing with the slowing market.  “While the market continues to be positive for sellers, I’m seeing more homes staying on the market longer and appraisals falling short,” states FAAR Board of Director Donna Schmidt.  “I am noticing sellers offering concessions and home warranties, which is a plus. August is showing a little lull due to families focusing on school, but all in all it, has been a good month.”

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 48% with houses averaging just 12 days on the market in August 2021 compared to 23 days in August 2020. 

There is good news on supply to report with active listings up nearly 40% from the scant offerings to be found last August.  New listings coming on to the market yet again beat the five-year average and saw nearly 9% more listings than last August. Homebuyers had 910 homes to choose from at the end of this August compared to just 651 homes available last August.  New pending contracts, which indicates the pace of transactions, were down nearly 4% indicating that demand might finally have cooled slightly, enabling active listings to recover in a small way.  During the late summer of 2016, the market had a nearly 4-month supply of homes.  The current market has consistently been running at about a 2-week supply of homes, meaning that the current demand would exhaust the available properties in just 14 days.  We are now up to about a 5-week supply of homes, more than double the lowest point.  The market is making progress, but it is still a strong seller’s market.

FAAR Endorses Candidates for Public Office

The Fredericksburg Area Association of REALTORS® (FAAR) announces endorsements for local Board of Supervisors and City Council races on the ballot for the November 2nd general election.  The endorsed candidates represent areas throughout FAAR’s service territory including the counties of King George, Orange, Stafford and Spotsylvania, and the City of Fredericksburg.

“As active members of our local communities, REALTORS® have a strong interest in this year’s elections.  I am pleased with the impressive slate of candidates that FAAR has endorsed this year.  These individuals will contribute much to our local communities by promoting economic development and protecting homeowners’ rights,” stated FAAR’s 2021 Public Policy Committee Chair Brad Johnson.  “FAAR strongly supports each of the candidates endorsed for public office and looks forward to working with these individuals at the local level.  The real estate industry is an integral part of our local economy and it is vital that REALTORS® help elect candidates who understand those connections and are willing to work with us on issues of importance.”

FAAR has endorsed the following candidates:

City of Fredericksburg
Jon Gerlach (City Council, Ward 2)
Tim Duffy (City Council, Ward 3)
Charlie Frye (City Council, Ward 4)

King George County
Cathy Binder (Board of Supervisors, Shiloh District)

Orange County
Jim Crozier (Board of Supervisors, District 4)

Spotsylvania County
Baron Braswell (Board of Supervisors, Battlefield District)
Kevin Marshall (Berkeley District)

Stafford County
Paul Milde (Board of Supervisors, Aquia District)

Local Real Estate Market Appears to be Normalizing

The frenetic real estate market of the last 14 months seems to show signs of slowing down just a bit.  “Maybe it was the hazy, hot and humid days or the influx of sellers hoping to capture the “hot” market, or maybe it was buyers who decided this sellers’ market wasn’t for them.  Whatever it was, things are seeming to slow down a bit and start to balance,” states 2021 FAAR President Carrie Danko.  “I am seeing homes on the market for longer periods of time, prices more consistent with market value, and a decrease in multiple offers.”

While July posted very robust market numbers, there are continuing signs that the pace of business may be cooling.  Sold dollar volume was up nearly 18%, coming in approximately $377.8 million in July of 2021 compared to $320.4 million last year.  The increase was fueled by a nearly 12% jump in median price going from $349,000 in July of 2020 up $51,000 to $390,000 in July of this year.  There was also a nearly 7% year-over-year increase in units sold with 907 properties changing hands in July compared to 849 last 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, fell 63% with houses averaging just 11 days on the market in July 2021 compared to 30 days in July 2020. 

For the first time in 2 years, the local real estate market has more homes for sale in a given month than the previous year.  July of 2021 saw about 3% more homes for sale than the previous year, but we’re still talking about historically very low inventory.  There were 740 homes for sale in July of 2020 and there are now 764 homes for sale.  The last time we saw more homes in July than the previous year was 2019, when inventory was 0.1% higher than the previous year and there were 1,749 homes for sale.  Since January of 2020, the market has experienced double digit year-over-year declines in active listings.  While up for July of 2021, active listings are still significantly lower than the 5-year average of 1,337 homes on the market. 

There is more good news in new listings, with July yet again beating the 5-year average of properties coming onto the market, with a nearly 20% increase from last July.  In 2020, 854 new properties came onto to the market compared to the 5-year average of 909 and the July 2021 number of 1,020.  New pending contracts, which indicates the pace of transactions, is holding steady at a modest year-over-year increase at 4%, with 883 new homes under contract.  The market over the last year regularly saw double digit increases in new pendings with some months posting 30% or 40% increases.

Many Realtors® are celebrating the cooling market as a needed step towards more predictability in the process and more buyers being able to find a home that suits their needs.  The super-charged competition and multiple offer situations of the market in recent months turned many buyers off and made it very difficult for moderate- and lower-income buyers to take advantage of the generational wealth creation benefits of homeownership.  “It will be interesting to see what happens in the months to come but one thing is for sure…it’s still a great time to sell and a great time to buy with the still historically low interest rates,” concludes Danko.

Summer Selling Season is in Full Swing

The summer selling season is in full swing in the Fredericksburg area with June real estate statistics blowing the record-breaking 2020 out of the water.  Total sold dollar volume increased by 29% fueled by a more than 17% rise in median sold price and a more than 10% increase in units sold.  Total sold dollar volume settled at approximately $434.3 million compared to $336.6 in June of 2020.  Median sold price was flirting with $400,000 for the month, coming in at $397,500, a more than 17% year-over-year increase from 2020.  Closed sales far exceeded the five-year average, showing how strong buyer demand throughout the region.  The 5-year average for closed home sales in June, typically real estate’s hottest month, is 813.  In June of 2021, a whopping 1,031 homes changed hands, a more than 10% increase over 2020’s already record-breaking number of 934 homes. 

“The local market continues to be strong for sellers but very competitive for buyers, as it is across the country,” states FAAR Board of Director Sandy Pearce.  “The lack of inventory seems to be the primary stumbling block even though low interest rates should be enticing to buyers. Buyer fatigue has some buyers stepping back from the home search and continuing to rent, although rental prices are also rising. The new home communities that are popping up all over the area are out of reach for many buyers in terms of cost, but even so the inventory of those “to be built” homes are often sold out before the shovels go in the ground. There are pockets of “softening” where the days on market are a bit longer or the number of above-list offers are fewer, but sellers are still seeing good return on their investment and this most likely won’t change any time soon,” continues Pearce.

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 a staggering 68% with houses averaging just 10 days on the market in June 2021 compared to 31 days in June 2020. 

Overall active listings were down over 9% this June compared to last year, with just 735 homes available in the entire FAAR footprint at the end of June.  New listings continue to be a bright spot with yet another month beating the five-year average with a 40% increase over last June.   In June of 2020, 815 new homes came onto the market compared to 1,147 new homes listed this June.  New pending sales were up nearly 4%, indicating that buyer demand will remain robust into the height of the summer.

Real Estate Continues to Roll Through May

The real estate market continued to post unprecedented numbers as spring marches on with significant increases in total sold dollar volume, median price, and units sold.  While the percentage increases year-over-year are staggering, the gains are moderated by the fact that May of 2020 was still deep in the throes of pandemic fear and government-wide lockdowns.  It is more telling to look at the month-over-month numbers to gauge true trends in this market since pandemic-related conditions are much-improved across the region.

The market posted a more than 67% year-over-year gain in sold dollar volume going from approximately $218 million in May of last year to more than $365.5 million in May of this year.  The month-over-month gain was still significant but a more modest 27% increase from April of 2021.  Median sold price was up a whopping 15% from last May, coming in at $390,000 but a mere 1.5% over last month, showing that already-elevated prices are staying high.  Units sold were up to 889 homes transacted this May compared to 621 in 2020, a more than 43% increase.  Compared to last month, sales were still up a significant 24%. 

“What a crazy market we are living today!” comments FAAR Board of Director Pia Contreras-Sanchez.  “May for me is kind of the culmination of the spring market or maybe a ” Graduation”.  By May, the clients I was working with already understood the fight we had to fight, and we proudly presented our bests and the most creative offers we possibly could.  The beauty of the business is that every day is a constant learning process and a challenge to adapt.  The numbers are working in our favor… for buyers, rates are still low and for sellers, prices remain high.” 

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 nearly 62% with houses averaging a scant 11 days on the market this May compared to the also very low 29 days last year.  A full 83% of homes on the market were sold in less than 10 days, demonstrating how quickly decisions need to be made in this market. 

Not unexpectedly, inventory across the region remains at historic lows.  In May of 2020, there were 1,964 homes on the market.  In May of 2021, there were just 573 homes for sale, representing a nearly 41% year-over-year decline.  However, new listings coming onto the market showed a sizeable increase again this month with 1,200 new listings coming onto the market, a nearly 49% increase from last May.  For the second month in a row, the market has beaten the 5-year average for new listings so it is not entirely accurate to state that our market is suffering from a supply shortage.  Homes are coming onto the market in record numbers, they are just being snatched up by very strong buyer demand.   New pending sales for the month of May are up 10% from last year and also beating the 5-year average, indicating that the pace of sales will probably not slow in June. 

Topside Federal Credit Union Awards Students Across the Area with $7,000 in Scholarships

FOR IMMEDIATE RELEASE
For More Information Contact:
Lisa Williams
Lisa.Williams@TopsideFCU.org I 540.413.3889

DAHLGREN, VA (June 1, 2021) – Topside Federal Credit Union, the area’s largest locally owned credit union, recently awarded scholarships to five students from King George, Fredericksburg, Stafford, and Spotsylvania.

Applicants were tasked with researching the importance of financial education for students their age, developing an outline for a financial education program that would appeal to their peers, and identifying the impact their program would have on their future. Among the numerous entries, the five winners were selected based on their creativity and outstanding essay structure.

The local winners were Braden Yates, Emma Shaeffer, Dana Jensen, Hayden Kendall, and Aren Wallace. Yates, the recipient of the Harry C. Ovitt, Jr. Memorial Scholarship in the amount of $3,000, is a graduate of Massaponax High School and plans to attend The University of Virginia. Shaeffer, recipient of the Jesse Miller, Fredericksburg (VA) Alumni Chapter, Kappa Alpha Psi Fraternity, Inc Scholarship in the amount of $1,000, is a graduate of Fredericksburg Christian School and plans to attend Lancaster Bible College. Jensen is a graduate of Jensen Academy and plans to attend Germanna Community College. Kendall is a graduate of Stafford Senior High School and plans to attend Savannah College of Art and Design. Wallace is a graduate of Stafford Senior High School and plans to attend James Madison University. These 3 individuals are recipients of the John J. Walsh Memorial Scholarships in the amount of $1,000 each.

Topside’s scholarship program has been offered to student members for over a decade. Application guidelines and details can be found at topsidefcu.org/scholarships.

ABOUT TOPSIDE FEDERAL CREDIT UNION

As a member-owned financial cooperative originally founded in 1961 by the employees of the Naval Weapons Laboratory in Dahlgren, VA. Topside has more than $450 million in total member assets serving 40,000 members. Visit topsidefcu.org or call 540-663-2181 for more information.

April Sees More Real Estate Market Acceleration

Despite rising interest rates and dwindling supply, the real estate market continued its acceleration with increasing total sold volume, median price, and units sold and decreasing days on market and available inventory.  Total sold dollar volume was up over 35% in April of 2021 posting more than $288 million in sales compared to $213 million in April of 2020.  Median price was up $20,000 from just last month, coming at $384,075, a more than 5% increase from just March.  Units sold increased from last year by more than 121 units, coming in at 719 properties transacted compared to 598 in April of 2020, a more than 20% year-over-year increase. 

“The housing market in Caroline County is rockin’ and rollin’ for the month of April,” stated FAAR Board of Director Lynn Lenahan.  “Like our neighboring counties, existing homes are receiving multiple offers which means increasing prices and fewer demands by buyers in an effort to win the offer. In the past several years, Caroline hasn’t had a huge amount of new construction like our neighboring counties, but that’s not the case today. Even with the increased cost and demand for materials, new construction is happening in both the Bowling Green side of the County as well as the popular Ladysmith side with its proximity to I-95.  With buyers struggling to win the offer while in competition with sometimes 10, 15 or 25 other offers, building sure begins to look attractive.”

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 nearly 52% with houses averaging a scant 14 days on the market this April compared to the also very low 29 days last year.  In practice, many homes are coming onto the market with sight-unseen offers already made so it is possible that days on market could appear artificially high without controlling for that phenomenon.  A full 81% of homes on the market were sold in less than 10 days, demonstrating how quickly decisions need to be made in this market. 

Not unexpectedly, inventory across the region remains at historic lows.  In April of 2020, there were 1,220 homes on the market.  In April of 2021, there were just 505 homes for sale, representing a nearly 59% year-over-year decline.  However, new listings coming onto the market showed a sizeable increase from March, with 27% more new listings coming on the market this month compared to last month.  In March, there were 944 new listings on the market compared to 1,197 in April.  The 5-year average of new listings is 1,054 so the number posted for April is much more in line with historical trends than we have been seeing over the last year.    

New pendings posted very strong numbers, indicating continued high buyer demand.  In April, the market saw 1,395 new pending contracts compared to 1,135 in the month of March, representing a 23% month-over-month increase.  Some agents have expressed a concern that anything other than a conventional or all-cash offer is not competitive right now, but the statistics indicate that VA and FHA loans remain a sizeable part of the market.  In April of 2020, VA loans made up 29% of sales, FHA 20%, cash offers 5%, and conventional financing 36%.  In April of this year, those numbers have shifted modestly with VA loans accounting for 24% of sales, FHA 17%, cash offers 8%, and conventional financing 43%.  While VA and FHA loans are seeing a smaller market share, there are still many properties being purchased using those types of financing. 

Virginia’s Commercial Real Estate Market Resilient Amid COVID-19

From the Virginia Realtors®…

Richmond, VA – According to the Q1 2021 Commercial Market Report released by Virginia REALTORS®, the commercial real estate market in Virginia has been surprisingly resilient, despite concerns about a serious downturn as a result of the COVID-19 pandemic.

Virginia’s office market has seen a modest rise in vacancy rates. Office rents have risen or remained stable in most markets across the state, and mid-sized and suburban markets have been performing best. In the 1st quarter, the fastest rent growth occurred in Charlottesville and Roanoke.

One key reason behind the resiliency of Virginia’s office market is growth in several key office-supporting sectors. Virginia REALTORS® Chief Economist Lisa Sturtevant, PhD, says, “In the commonwealth, the economy has gained back all of the jobs that were lost in the important Professional & Technical Services sector. In addition, the Finance & Insurance sector has remained steady throughout the past year.”

The impact of COVID-19 on Virginia’s retail market has not been as severe as expected. Despite early predictions, there has been no major fleeing from retail spaces in many Virginia markets. While retail vacancy rates have increased over the past year in Virginia, vacancy has remained fairly low—under 6%—in all markets across the state. Retail rents have declined modestly in Northern Virginia and Richmond, though there has been rent growth in some smaller markets, including Hampton Roads and Roanoke.

Industrial real estate has outperformed all other property sectors, benefiting from the pandemic’s fallout, rather than being set back by it. Growth in e-commerce sales has been a key driver of the strong demand for industrial space, particularly warehousing and fulfillment centers.

Virginia REALTORS® publishes quarterly reports on the commercial real estate market. These reports summarize trends in the office, retail, and industrial markets in nine regions across the state, and provide an outlook for future commercial market conditions. Click here to view the full Q1 2021 Commercial Market Report.

FAAR Recognizes 2020 Realtor® Award Winners

The Fredericksburg Area Association of REALTORS® (FAAR) recognized 2020 Award Winners who have set themselves apart in the industry through their commitment to professionalism, education, and customer service.

Awards were handed out for Rookie Salesperson of the Year, Manager of the Year, REALTORS® Choice, and Educator of the Year. In addition, 17 members were recognized for achieving the Professional Honor Role in 2020.  The Professional Honor Role spotlights members who have made contributions to the real estate industry, the Association, and the community.

The following individuals received awards for 2020:

Manager of the Year
Nick Brown, Weichert Realtors®
Rookie Salesperson of the Year
Morgan Segars, Long & Foster Real Estate, Inc.
Educator of the Year
Sarah Stelmok, Nest Realty
REALTORS® Choice
Dalal Abilmona, Berkshire Hathaway Home Services Select Realty

 

Professional Honor Role

Tricia Barnes, 1st Choice Better Homes & Land

DeAnna Hamn, 1st Choice Better Homes & Land

Carrie Danko, 1st Choice Better Homes & Land

Penny Traber, 1st Choice Better Homes & Land

Ginny Vickers, 1st Choice Better Homes & Land

Lynn Lenahan, 1st Choice Better Homes & Land

Sha Williams Hinnant, 1st Choice Better Homes & Land

Bethany Pannell, 1st Choice Better Homes & Land

Corrine Macon, 1st Choice Better Homes & Land

Linda Williams, Century 21 New Millennium

Linda Dort, C21 New Millennium

Valerie Dellandre, C21 New Millennium

Tony Shade, RE/MAX Allegiance

Sharon Shade, RE/MAX Allegiance

Drew Fristoe, Coldwell Banker Elite

Jennifer Caison, Coldwell Banker Elite

Chip Taylor, Long & Foster, Inc.

Also recognized at the event was FAAR’s first recipient of the Faces of FAAR Diversity Scholarship, Tamar Myers-Moffatt, Samson Properties. 

Congratulations to all! 

One Year into the Pandemic and Real Estate is Still Flying High

Despite a dip in pending sales in February, March proved another very strong month in the local real estate market.  The month closed out with a more than 25% increase in total sold dollar volume, going from approximately $204.5 million in March of 2020, t0 more than $256.6 million in March of 2021.  Median sold price was up over 15% year-over-year, clocking in at an all-time high of $364,950 in March of 2021 compared to $316,000 in 2020.  These increases were fueled by a more than 8% increase in units sold with 601 properties changing hands in March of 2020 compared to 650 in March of this year. 

“The spring market kicks off with extremely low home inventory leaving buyers and their agents distraught and frustrated jockeying for accepted offers, and elated sellers as home prices have dramatically increased,” comments FAAR Board of Director Lauren Tate.  “My agents are taking this opportunity to connect with homeowners to understand their five-year homeownership goals as now may be a great time to cash out.  Overall, residential real estate continues to be a key driver of the economy.”​

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 more than 63% with houses averaging a measly 15 days on the market this March compared to 41 days last year.  In practice, many homes are coming onto the market with sight-unseen offers already made so it is possible that days on market could appear artificially high without controlling for that phenomenon. 

Not unexpectedly, inventory across the region remains at historic lows.  In March of 2020, there were 1,191 homes on the market.  In March of 2021, there were just 383 homes for sale, representing a nearly 68% year-over-year decline.  New listings were down 5% compared to last year, which was a much lower decline than February.  New pendings while down in February possibly indicating a softening of demand due inventory issues, increased again in March with 14% more new pending sales compared to last March and nearly 10% more pending homes sales overall.  Scant inventory is certainly hampering many home searches, but the demand for residential real estate remains high despite those challenges.

FAAR receives $4,500 for Orange County Park Project

FAAR will use a $4,500 Placemaking grant from the National Association of Realtors® (NAR) to help transform an unused space in the Town of Orange into a vibrant, public destination for community use and enjoyment. 

The grant was designed by NAR to ensure local Realtor® Associations are partnering with neighboring organizations to plan, organize, implement and maintain Lighter, Quicker, Cheaper placemaking in their communities.  

FAAR will contribute these funds to help support the creation a pocket park along the Church Street corridor in the Town of Orange.  This corridor was home to a thriving Black commercial district through the 1970s which was significantly impacted by a bypass transportation project.  The park will feature a series of interpretive markets recounting the history and people of the business district, with seating, landscaping, and statuary.  The park will not only serve as a gathering spot for reflection and inspiration, but also as a catalyst for preservation-based economic development.  FAAR is partnering with the Orange Downtown Alliance, a certified-Main Street program.  

Artist rendering of the proposed project

February Sees More of the Same in Local Real Estate Market

February of 2021 saw very similar numbers as January, with increases in sold dollar volume, median price, and units sold.  The market saw a 10% year-over-year increase in median price, going from $316,000 in February of 2020 to $349,950 in February of 2021.  Units sold increased more than 13%, finishing out the month at 487 compared to 429 units sold last February.  Total sold dollar volume increased more than 26%, coming in at approximately $181.4 million this year compared to $143,5 million last February. 

FAAR Board Member Randy Walther comments, “The crazy weather of the past month matches the turbulence in the real estate market. February saw more of the same issues that have been in place for the past few months. Record low interest rates and changing housing needs are driving the market at a time when inventory is extremely low. That has caused an increase in prices but that increase is being somewhat offset by the low rates. “If you list it, it will sell” has become the motto in real estate this year. Buyers are laser focused on homes that fit their changing needs whether it’s location, space, internet connectivity or size. These issues should stay in place for the foreseeable future as more and more people seek the security of a home that can adapt to a new normal.”

The increases were unevenly distributed among the region’s localities however, with King George and the City of Fredericksburg seeing slight decreases.  The City and King George saw a very slight drop in median price from February 2020, 0.6% and 1.4% respectively, but that is not uncommon in smaller markets like these two localities.  King George County also saw a 20% decrease in units sold which could be indicative of continued challenges with finding housing in a very low-supply market.  Stafford and Spotsylvania counties posted significant increases in median price, 11% and 15% respectively, pushing their median prices to all-time high levels, a common occurrence in recent months. 

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 more than 71% with houses averaging a measly 16 days on the market this February compared to 56 days last year. 

Not unexpectedly, inventory across the region remains at historic lows.  In February of 2020, there were 1,140 homes on the market.  In February of 2021, there were just 360 homes for sale, representing a more than 68% year-over-year decline.  New listings were down nearly 23% compared to last year.  New pendings were down also, clocking in at 9% less than February 2020, which could be attributed to the lack of available supply to meet the current demand.   

Regional Housing Market Starts the Year with a Sprint

The new year began the same way it went out:  with so little supply of homes for the raging demand from homebuyers that even houses in the top price points saw multiple offers, a relatively rare occurrence in the in the last 10 years.  January closed out with a total sold dollar volume of approximately $184.5 million which represents a staggering 50% increase over January of 2020.  The market saw a significant 13% year-over-year increase in median price, going from $305,000 in January of 2020 to $345,000 in January of 2021.  Units sold increased over 26%, finishing out the month at 486 compared to 385 units sold last January. 

FAAR Board of Director Dawn Josemans comments, “As we keep doing business with our new virtual tools and following CDC guidelines when we physically show homes, we are not seeing the market slow down.  We are still seeing more buyers than there is inventory to support, so buyers are not getting the first house they put an offer on.  Maybe not even the second or third home they put on offer on.  As a result, we are seeing multiple offers quite a bit over list price within days of going on the market.  Many sellers are accepting those offers, waiving previous customary contingencies and keeping their fingers crossed for an on-the-money appraisal.”        

While Stafford County has frequently driven gains in regional numbers, that was not necessarily the case for this January.  While the County’s median price clocked in at $400,000 once again, representing a more than 14% increase from last January, units sold remained flat.  There were 154 homes sold in pre-pandemic January in Stafford County, and 159 homes sold in January of 2021.  At first blush, this might appear to indicate that demand is cooling in the County but a closer look at the numbers reveals that is not the case.  A nearly unfathomably low inventory is responsible for depressing sales in Stafford County.  In January of 2020, a time when most agents would agree that the supply was very low, there were 404 available homes on the market.  Fast forward to the end of January 2021, and there were just 80 homes on the market, representing a whopping 80% decrease. 

The jurisdictions with smaller populations saw the largest gains in January with Colonial Beach, Orange County, King George County, and the City of Fredericksburg posting 100% or more increases in total sold dollar volume, with Caroline County not far behind at 75%.  The acceleration in sold volume was driven by a combination of higher price points and many more units sold, sometimes even 100% increases from the previous year.  If January is any indication of how the market is going to be in 2021, area homebuyers and sellers are in for a wild ride.   

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 nearly 60% with houses averaging a measly 20 days on the market this January compared to 48 days last year. 

Not unexpectedly, inventory across the region remains at historic lows.  In January of 2020, there were 1,149 homes on the market.  In January of 2021, there were just 396 homes for sale, representing a nearly 66% year-over-year decline.  New listings were down more than 10% compared to last year, but that number seems moderate compared to some of the decreases the market has seen over the past year.  New pendings continue their upward trajectory with a nearly 15% increase in pending contract activity compared to last year. 

The past year has also seen a very heated and competitive rental market, altered in many ways by the eviction moratorium and accelerating demand.  Josemans, whose real estate specialty is property management, comments, “The rental market remains strong; however, it is an interesting and complicated portion of the market.  There are tenants whose income has been affected by COVID receiving Federal protection from being evicted. There are landlords being protected by the State with avenues to seek mortgage and rent income relief.  The question is how long are both of these protections going to last.  What happens when the protections go away?  What happens to the folks who did not receive relief?  Market conditions have led to a great deal of landlords deciding to take advantage of the current sales market and sell their investment property.”

Fredericksburg-area Real Estate Market Wraps Up a Sizzling Year

“In a year of uncertainty, one thing was certain:  the housing market was hot,” states 2021 FAAR President Carrie Danko.  “In March, as widespread local shutdowns and quarantines were implemented to curb the pandemic, it seemed that the housing industry should prepare for a tough year,” continues Danko.  “Instead, we saw buyers and sellers adjusting to COVID precautions and restrictions resulting in one of the best years in real estate in over a decade.”  The year closed out with a total sold dollar volume of just over $3 billion which represents a nearly 30% increase over the year-end totals for 2019.  The market saw a significant 10% year-over-year increase in median price, going from $310,000 in 2019 to $339,520 in 2020.  Units sold increased over 19%, finishing out the year at 8,310 compared to 6,978 units sold in 2019. 

“The only downside to the 2020 market was low inventory and buyers felt it.  Most sellers experienced multiple offers, likely over list price, after only days on market.  Many buyers experienced disappointment after disappointment, especially buyers in the most competitive price ranges.  Ultimately, 2020 did end with very happy sellers and buyers as evidenced by the over 8,000 transactions that took place in our market,” says Danko. 

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 a whopping 31% with houses averaging 42 days on the market in 2019 compared to just 29 days in 2020.  More than half of homes sold in 2020 went under contract in 10 days or less.  The vast majority of sales were of 3 or more-bedroom single family homes, with that segment making up over 83% of the total units sold. 

December kept with the trend of the year and posted an impressive 56% increase in sold dollar volume and a nearly 44% increase in units sold.  The month saw more than $259.8 million in total sold dollar volume, compared to $166.5 million in December of 2019.  Median price was up 10%, settling at $347,222 this December compared to $314,388 last December.   Units sold increased from 483 last year to 695 this year, with significant increases in both attached multifamily and detached single family. 

Inventory has been the main challenge facing the local real estate market for a few years now and the events of 2020 exacerbated an already bad situation.  December 2020 closed with the lowest number of homes available on the market in over 10 years with just 511 available properties, which represents a less than one month supply of homes.  By comparison, we closed the year 2015 with a 3.8-month supply of inventory and 1,574 homes on the market. 

While any predictions about 2021 are incredibly uncertain at this point, Realtors® are anticipating a strong year in the market.  “My hope for 2021 is that interest rates remain at historic lows, inventory starts coming on the market at higher levels, strong buyer activity continues, and that 2021 finishes even stronger than 2020,” Danko concludes.   

 

How hot can the local real estate market get?

Potential buyers in the Fredericksburg-area housing market are asking themselves, how high can it go?  The market posted another sizzling month with dramatic increases in total sold dollar volume and units sold coupled with plummeting days on market. Sold dollar volume was up 68% year-over-year, increasing from approximately $149 million in November of 2019 to nearly $250 million in November of this year.  The increase was fueled by a nearly 50% uptick in units sold with 664 transactions this November compared to 450 last year.  Median price was up over 9% settling at $340,000, up from $311,700 last November.

Is it possible for houses to spend zero days on market?  In this market, it is becoming more and more prevalent.  In the month of November, 24 homes spent zero days in active status on the market.  A whooping 435 of the 664 homes sold in November spent between 1 and 10 days on the market.  Average 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 over nearly 64% with houses averaging just 16 days on the market in November 2020 compared to 44 days in November 2019. 

Supply is the major issue in the market and has been for the entire year.  November closed out the month with just 572 homes on the market, compared to 1,435 in November of last year.  With 664 homes sold in the month, that demonstrates the quick churn through existing inventory.  New pendings were up again in November, with 28% more homes under contract in November of 2020 versus last year. 

“The November market was much the same as the rest of the year.  Multiple offers on homes are still happening a lot of the time,” states 2020 FAAR President Drew Fristoe.  “I have buyers who are still searching for the right home and the home where our offer will be picked.  On the listing side, my sellers are waiting until the New Year so that they can get through the holidays.”

FAAR Installs 2021 Leadership Team

The Fredericksburg Area Association of REALTORS® (FAAR) installed its 2021 Leadership Team in a virtual ceremony on Thursday, December 10, 2020.  Despite the year’s many challenges, the Association under 2020 President Drew Fristoe remained committed to serving the more than 1,700 Realtors® working throughout the region with top-notch educational offerings, wide ranging real estate services, and strong advocacy to protect the real estate industry.

Looking ahead to 2021, incoming President Carrie Danko of 1st Choice Better Homes and Land is focused on keeping those values strong and is committed to “rethink, reenergize, and rebound” together.

Incoming President Carrie Danko and her leadership team were installed by Ann Black, broker and owner of 1st Choice Better Homes and Land.

Several awards were also given out, including:

 Realtor® Emeritus
Recognizing members who have attained 40 years of continuous membership in FAAR.

Chris Kaila
Exit Elite Realty
Patsy Thompson
Rappahannock Properties, Inc.

 

Silver Circle Awards

Recognizing members who have attained 25 years of continuous membership in FAAR.

Tracy Bilodeau
BHHS Select Realty
Falco Bruno
United Real Estate Premier
Kathleen Elim
Samson Properties
Joyce Lamantia
A Home 4 U
 Richard Snow
Exit Realty Expertise
 Faith Strong
Valere Real Estate
Denise Vrabel
Help U Sell Grein Group
Kenneth White
Century 21 Redwood

 

 Affiliate of the Year
Recognizing the FAAR affiliate member that provides exceptional service to FAAR, its members, and the general public.

Tim Murphy
C&F Mortgage


Good Neighbor Award
Recognizing members who give back to the community.

Patti Murphy
Long and Foster
Denise Smith
Century 21 Redwood
 Deb Ellis
Coldwell Banker Elite
 

 

Spirit Award
Recognizing the participation of a member who supports FAAR behind the scenes.

Sherrie Shaw
Universal Title


Raising the Bar Award
Recognizes the member who has gone above and beyond to improve their knowledge of the business and professional standards.

Matthew Rathbun
Coldwell Banker Elite


Icon Awards
Recognizing members who have made a significant mark on the real estate profession.

 Alex Long
Weichert, Realtors®
 Janel O’Malley
Coldwell Banker Elite


The 2021 FAAR Leadership team is:

President                    Carrie Danko, 1st Choice Better Homes and Land, LC
President-Elect          Deb Ellis, Coldwell Banker Elite
Vice President           Carol Sondrini, Coldwell Banker Elite
Secretary                    Randy Walther, Nest Realty
Treasurer                    Clay Murray, Pathway Realty
Directors                     Lynn Lenahan, 1st Choice Better Homes and Land, LC
                                      Sandy Pearce, Pathway Realty
                                      Dawn Josemans, Coldwell Banker Elite Property Management
                                      Lauren Tate, Century 21 Redwood
                                      Kardin Lillis, Weichert, Realtors®
                                      Pia Contreras-Sanchez, Prime Realty
                                      Donna Schmidt, 2-10 Home Buyers Warranty

Immediate Past President, Drew Fristoe, Coldwell Banker Elite, will join the 2021 Leadership Team on the Board of Directors.

Fredericksburg-area Real Estate Market Shows No Sign of Slowing Down

The local real estate market shows no signs of slowing down despite the ongoing pandemic, fears of another wave of the virus, continued economic contraction, and cooler weather approaching.  Total sold dollar volume was up a whopping 63% from last year, coming in at approximately $291.1 million this October compared to $178.1 million last October.  The region’s median price increased for the 19th straight month, soaring more than 13% year-over-year going from $310,000 in October of 2019 to $352,000 in October of this year.  Units sold increased a record breaking 42% with 760 homes sold this October compared to 535 last 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, fell 50% with houses averaging a mere 20 days on the market in October 2020 compared to 40 days in October 2019. 

“With the listing inventory still at an all-time low, the October market resulted in higher sales volume and increased sale prices,” comments FAAR Board of Director and affiliate member Donna Schmidt.  “Escalation clauses were insane, with buyers foregoing home inspections and all other contingencies taking us back to the 2004-05 market.  However, appraisers and Realtors® have tried to keep things in check and are doing an amazing job keeping up with the times.”

The region’s supply issues continue to frustrate buyers as the market saw another huge drop in active listings compared to last year at the same time.  The region closed out October with just 653 homes on the market, a 59% decrease from last year.  Realtors® would have said a year ago that supply was the biggest issue facing the market and that was when active listings were over 1,600.  New listings provided a glimmer of hope again this month with a more than 13% increase in homes coming on the market over the same time last year. New listings are quickly being absorbed into current demand leading to higher units sold the next month.  New pending transactions were strong again this month with a 44% increase, indicating that things are not slowing down.

More of the Same in the Fredericksburg-area Real Estate Market

The local real estate market continues to experience high transaction volume, low inventory, and rising prices.  As summer faded into early fall, inventory shrunk to just under one month of supply.  A healthy, balanced market is generally considered to have a 6-month supply of homes.  Total sold dollar volume was up nearly 49% from last year, coming in at approximately $275.9 million this September compared to $185.4 million last September.  The region’s median price increased for the 18th straight month, soaring nearly 10% year-over-year going from $305,000 in September of 2019 to $335,000 in September of this year.  Units sold also increased significantly, rising nearly 35% with 755 homes sold this September compared to 560 last 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, fell over 55% with houses averaging just 22 days on the market in September 2020 compared to 49 days in September 2019. 

“The market is challenging right now in that it’s such a seller’s market and we desperately need more listings to help with the inventory shortage,” states FAAR Board Member Carol Sondrini.  “Interest rates remain historically low which is encouraging for buyers as they have more purchasing power, but since the market is moving so rapidly, it often takes buyers a few offers on different properties to get a ratified contract.”

The region’s supply issues continue to frustrate buyers as the market saw another huge drop in active listings compared to last year at the same time.  The region closed out September with just 609 homes on the market, a whopping 63% decrease from last September.  New listings provided a glimmer of hope with an 8% increase in new listings over the same time last year.  In September of 2019, 755 homes came onto the market, while 817 new listings came on this September.  New pending transactions were strong again this month with a more than 34% increase, indicating that things are not slowing down.

No Slow Down in the Fredericksburg-area Real Estate Market

The local real estate market shows no sign of cooling as summer draws to a close.  Total sold dollar volume was up over 30% from last year, coming in at approximately $281.3 million this August compared to $215 million last August.  The region’s median price increased for the 17th straight month, soaring nearly 11% year-over-year going from $315,900 in August of 2019 to $350,000 in August of this year.  Units sold also increased significantly, rising over 17% with 755 homes sold this August compared to 644 last 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, fell over nearly 43% with houses averaging just 23 days on the market in August 2020 compared to 40 days in August 2019. 

The region’s housing engine is being fueled by nearly every jurisdiction within the FAAR footprint.  Caroline County saw a huge increase in total volume sold, exploding by over 37% and posting a $13.3 million month in August, compared to approximately $9.8 million last year.  The City of Fredericksburg saw a nearly 57% increase in units sold and a startling 72% drop in days on market, coming in second in the region for August at a mere 19 days.  King George saw a more than 25% increase in their median sold price, inching ever closer to the $400,000 milestone by settling at $390,000 this August.  Spotsylvania County wasn’t far behind the City in days on market, coming in at just 21 days with a massive 46% increase in total sold dollar volume.  Stafford posted the most impressive numbers in the region, surpassing $400,000 in median price for the first time ever by settling at $403,115, a nearly 12% increase over last year.  The County also led the region in lowest days on market with a 55% decrease and a measly 17 days on market.  Of the 287 sales in the County in August, 193 homes spent zero to 10 days on the market. 

Sellers are in strong command in this market with very low inventory making for challenging times.  Many Realtors® are seeing multiple offers and buyers waiving contingencies like home inspections and appraisals.  “We are also seeing more requests for safety measures to help protect sellers’ homes and their families,” states FAAR Board of Director Deb Ellis.  “It’s not uncommon to see seller stipulations like universal masking for showings, requests to not touch anything in the home, only allowing people into the home who are a party to the contract, and limiting the number of showings per day.  These restrictions are ushering in many sight-unseen contracts as well,” continues Ellis. 

The region’s supply issues continue to frustrate buyers as the market saw another huge drop in active listings compared to last year at the same time.  The region closed out August with just 651 homes on the market, a whopping 63% decrease from last August.  New listings provided a glimmer of hope that sellers are feeling a little more comfortable listing their homes with August seeing the second straight month of only single digit losses in new listings compared to the previous year.  The market had been experiencing double digit decreases in new listings each month since the start of the pandemic.  New pendings were up 30% indicating that this trend of a very active market is set to continue through the end of the summer.

Fredericksburg Area Real Estate Market Continues to Sizzle

The local real estate market continues to sizzle fueled by plummeting inventory and skyrocketing demand as many prospective buyers look for more space, more yard, and more in-home amenities like pools and playscapes.  Total sold dollar volume was up over 30% from last year, coming in at approximately $320.4 million this July compared to $245.6 million last July.  The region’s median price increased for the 16th straight month, soaring nearly 8% year-over-year going from $324,900 in July of 2019 to $349,900 in July of this year.  Units sold also increased significantly, rising over 18% with 849 homes sold this July compared to 719 last year. 

“As we continue to navigate these unprecedented times, most buyers and sellers are adjusting and accepting social distancing and adhering to the COVID-19 CDC guidelines,” comments FAAR Board Member Cindy LeBrun.  “Some sellers are pricing to get multiple offers with buyers not asking for closing costs or forgoing the home inspection which could be a mistake later down the line.  Buyers are now realizing that they need to move quickly to get pre-approved with a lender to be able to make their offer stronger to the seller.  The historically low mortgage rates have been a game changer and most lenders predict the low rates continuing through December, which should keep the housing market busy.”

Two of the region’s localities approached the $400,000 median price mark in July, adding even more fuel to the regional sales price increase.  The City of Fredericksburg saw a 16% rise in median price from last year, settling at $394,900 while Stafford County just missed hitting $400,000 with an 8% median price increase to $399,000.  Every jurisdiction in the FAAR footprint saw significant increases in units sold but Caroline County led the pack with a whopping 71% increase, going from 42 homes sold last July to 72 this July.  Caroline’s affordability and wide-open spaces are proving attractive to many prospective buyers. 

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 over 9% with houses averaging just 30 days on the market in July 2020 compared to 33 days in July 2019. 

The region’s supply issues continue to frustrate buyers as the market saw another huge drop in active listings compared to last year at the same time.  The region closed out July with just 740 homes on the market, an astonishing 57% decrease from last July.  New listings provided a glimmer of hope that sellers are feeling a little comfortable listing their homes with July posting only a single digit loss in new listings compared to the previous year.  The market had been experiencing double digit decreases in new listings each month since the start of the pandemic.  New pendings were up nearly 20% indicating that this trend of a very active market is set to continue for the rest of the summer.

Big story from Q2 real estate statistics? There are no homes! Check out the full report…

It’s clear that real estate has weathered the COVID-19 pandemic storm very well up to this point.  Some Realtors® are having the best year of their career, but how long can the hot market last?    Mortgage rates are expected to stay low and there is a glimmer of hope on the medical horizon with active vaccine trials underway.  But virus hot spots continue to rage in parts of the country and fears about a resurgence are always at the back of people’s minds.  Despite the significant increase in prices and plummeting days on market, would-be sellers continue to hold back.  The area is seeing barely a month supply of homes meaning many, many frustrated buyers.  The second quarter of 2020 ended strong for real estate but the perpetual question of what does the future hold remains a focus of all associated with the industry.

Access the full report below and share with your clients and customers.  Questions or feedback about the report?  Send Kim McClellan an email.

Summer Selling Season is in Full Swing

Real estate market continues to power on despite ongoing pandemic

The summer selling season is in full swing in the Fredericksburg area with June real estate statistics blowing 2019 out of the water.  Total sold dollar volume increased by 42% fueled by a nearly 8% rise in median sold price and a nearly 31% increase in units sold.  Total sold dollar volume settled at approximately $336.6 million compared to $236.8 in June of 2019.  Median sold price held steady from May coming in at $339,000, posting a nearly 8% gain.  Units sold far outstripped last year with a whopping 934 properties changing hands, compared to 714 in June of 2019, representing a nearly 31% year-over-year increase.

“Many Realtors® were initially expecting the Real Estate market to come to a screeching halt back in March or at least slow down considerably as the pandemic progressed.  But with historically low interest rates and a large part of our population in tech-friendly positions, people’s personal lives have changed socially but many are unchanged financially with regards to their ability to meet pre-approval qualifications with lending institutions,” comments FAAR Board Member Lynn Lenahan.  “Now that we are into summer, it seems summer is our spring and it’s very busy.  We are hurting for inventory more so this year than even last.  People want to, and in many cases, need to move but have little to choose from.  This has created bidding wars, multiple offers, escalating prices, lots of activity, one happy purchaser, tons of disappointed potential buyers, frustrated agents and a tough time for appraisers in finding comps to support the upward trend.”

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 almost 14% with houses averaging just 31 days on the market in June 2020 compared to 36 days in June 2019.

Overall active listings were down over 54% this June compared to last year and new listings coming on to the market were down nearly 17%.  In June of 2019, many agents identified a lack of inventory as the biggest challenge in the market.  At that time, the local market had about a 3.6-month supply, a healthy and balanced market is generally considered to be 6 months of supply.  The market is seeing a measly 1.3-month supply of homes, with just 811 on the market at the end of June compared to 1,775 at the end of June 2019. New pendings were up over 20% indicating that this trend of a very active market is set to continue throughout the summer.

Fredericksburg REALTORS Foundation donates $2,500 to Mary’s Shelter

COVID is keeping us from doing in-person check presentations, but this blast from the past shows that we have a long history of support!

The Foundation approved a $2,500 grant for an emergency bathroom renovation at Mary’s Shelter.  At any given time, Mary’s Shelter provides housing for up to 18 women and their children in need of safe refuge.  In addition to the homes they own, they also offer financial assistance to women in our community so that they can avoid homelessness.  The shelter has been in operation for 14 years.  

Mary’s Shelter has expanded their services because the needs are so great, while their donations have shrunk due to the pandemic.  One of their homes experienced a very ill-timed bathroom leak, necessitating the move out of two families from units that were impacted.  It is vital that Mary’s Shelter repairs the water damage and the leaky bathroom to get folks back into these units, and that’s where the Foundation’s money comes in. 

While the Foundation was so pleased to give the $2,500 in funding, it falls far short of the $7,000 needed to repair the bathroom.  If you are interested in learning more about Mary’s Shelter or donating to their operation, please visit http://marysshelterva.org/.  

Real Estate Market Holds Steady in Wake of Continued Pandemic Impact

Numbers hold steady, but inventory challenges hamper sales

The big story coming out of May real estate numbers is the dire situation the market is facing in terms of seriously constricted supply.  At the end of May, there were just 964 homes on the market for buyers to choose from, almost half of what was for sale at the same time last year.  That represents a less than 2-month supply of homes on the market at the current buying pace.  A healthy, balanced market is generally considered to have a 5-month supply of homes.  In May 2014, we had a 5.6-month supply of homes on the market which translates into just over 2,000 homes for sale.  This area has been experiencing supply shortages for a long time now as the last time there was a 5-month or more supply of homes on the market was September of 2015.  While the COVID-19 crisis did not start the inventory issues, it has certainly exacerbated it as prospective sellers are holding back due to concerns about transmitting and contracting the virus.

“Although the state is using a three-step phased approach to reopen, it appears the real estate market was one phase and BOOM,” comments FAAR Board of Director Kelly Bradshaw Walker.  “We had a slight slow period and now we seem to have busted wide open!  Inventory is low, making it quite an impressive seller’s market despite the current pandemic.  Agents are continuing to use existing and new technologies to market, sell, and keep transactions going with agent and client health in mind.”

The market held steady in May, with some localities reporting slight declines in median price and units sold.  Sold dollar volume was down nearly 3% in May, decreasing from approximately $224.5 million last May to just over $218 million this year.  The decrease is reflected in nearly 7% less homes sold in May of 2020 versus May of 2019, with 661 last year compared to 621 this year.  Median sold price was up across the region as a whole to the highest level the region has ever seen, coming in at $339,000.  That represents a year-over-year increase of nearly 7% and was fueled by price increases in Stafford and Spotsylvania counties.  The City of Fredericksburg and the counties of King George, Caroline and Orange all saw price declines in May.

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 more than 9% with houses averaging just 29 days on the market in May 2020 compared to 32 days in May 2019.  That 29 days has held steady from last month and the market has been experiencing a quick turnaround on well-priced properties for a long time now.

Overall active listings were down a whopping 45% this May compared to last year and new listings coming on to the market were down nearly 29%.  New pendings were up over 14% indicating that there are ready and willing buyers in the marketplace.

A Statement from the 2020 FAAR President and FAAR CEO

REALTORS® are passionate about helping people find a home.  A safe place free from discrimination, fear, and pain. As we become more accepting of our differences, FAAR is committed to supporting our members and the community by renewing its focus on promoting Fair Housing and racial equality, encouraging inclusive communities, and advocating for affordable housing for all citizens.

FAAR provides comprehensive Fair Housing and Code of Ethics education and opportunities for engagement from a diverse cross-section of our membership. In the community, the Association is represented on area agencies and supports local housing-related non-profits through grants from the Fredericksburg REALTORS® Foundation.  We can always do more. Please provide input on how, together, we can strengthen our commitment to serve the community by submitting an email to dfristoe@coldwellbankerelite.com.

Drew Fristoe, 2020 President     Pat Breme, CEO

Local Real Estate Market Surges Despite Significant Restrictions

While continued governmental restrictions shutter businesses and completely change the way Americans operate in their day-to-day lives, the local real estate market bucked national trends and posted increases in volume, sold price, and units sold.  While national news outlets are reporting decreased sales and falling prices, the local market saw sellers receiving 98.9% of their original list price, indicating that we are not seeing downward pressure on prices as a result of the restrictions in place to combat COVID-19. 

Sold dollar volume was up more than 12% in April, jumping from approximately $189.8 million last April to more than $213 million this year.  The increase in volume was fueled by a nearly 4% increase in units sold and a more than 6% increase in median sold price.  There were 598 properties sold this year compared to 573 last April with a median price increase from $318,000 last year to $338,548 this year.

Stafford County led the charge in rising median price posting its highest sales price in the month of April since 2006.  Median price in the County for April was $390,000, not too far off from the last highest price of $402,000 posted in April of 2006.  Every other jurisdiction except for Orange County saw an increase in median price, and even that decrease was fairly negligible at 3.6%. 

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 nearly 24% with houses averaging just 29 days on the market in April 2020 compared to 38 days in April 2019.

Overall active listings were down more than 26% this April compared to last year and new listings coming on to the market were down over 22%.  Prospective buyers have just 1,220 homes to choose from right now, with 882 new listings coming onto the market.  This is a significant reduction in new listings and active listing from March, indicating that as the area progressed deeper into economic restrictions and fears of contracting the virus, would-be sellers became more reticent about putting their homes up for sale. 

“The inventory of homes on the market has been affected as some sellers are reluctant to have buyers tour their homes,” states FAAR Board Member Sandy Pearce.  “Realtors® are using creative means to showcase the homes that ARE on the market with virtual showings and Facebook Live open houses, and many buyers are facing bidding wars when they find their home of choice. Some buyers are putting their home search on hold until the time they feel more comfortable being out. All this could portend for a very active summer market as interest rates remain at historic lows.”

FAAR Releases 2020 1st Quarter Home Sales Report

How things have changed from January and February!  COVID-19 crashed into our market in mid-March and virtually ground life as we know it to a halt, so how did that impact the local real estate industry?  The first quarter of 2020 was strong, with increasing volume and pricing, and decreasing inventory and days on market.  The leading edge of COVID-19 impacts started to be felt in late March, but overall the quarter was a strong one.  Access the full report below and share with your clients and customers.  Questions or feedback about the report?  Send Kim McClellan an email.

FAAR Endorses Mary Katherine Greenlaw for Mayor

The Fredericksburg Area Association of REALTORS® (FAAR) announces its endorsement of Mary Katherine Greenlaw for Mayor of the City of Fredericksburg.  The general election was scheduled to take place on Tuesday, May 5, 2020 and also includes seats for At-Large City Council members and School Board.  Governor Northam has postponed the election until Tuesday, May 19, 2020.  The City of Fredericksburg is encouraging all citizens to vote by mail.  The last day to request an absentee ballot is May 12, 2020.

“As a City resident and an active REALTOR® downtown, I am personally very interested in this year’s election,” states FAAR Public Policy Committee Chairman Chip Taylor.  “There is no question that the City of Fredericksburg has become a premier destination to live, work, and visit.  After a comprehensive interview process, the FAAR Public Policy Committee sees great value in the continued leadership of Mayor Mary Katherine Greenlaw during this unprecedented time of upheaval caused by COVID-19.  Mayor Greenlaw is a collaborative leader with a deep knowledge of the budget process and a commitment to bringing us back to where we were before the coronavirus.”

The FAAR Public Policy Committee conducted candidate interviews in early April in anticipation of a May election.  The group interviewed both candidates running for Mayor and all three candidates running for the At-Large seats.  More information regarding the election and requests for absentee ballots can be made at https://www.fredericksburgva.gov/534/Voter-Registrar.

Real Estate Market Proves Resilient in the Face of COVID-19

Despite significant concern over the impact of COVID-19 on the local real estate market, March numbers show increases in sold volume, median price and units sold.  FAAR Board Member Linda Fosdick remarks, “Our Lake Anna market enjoyed a robust spring. Even at the outset of the COVID-19 virus, our clients were still actively looking at properties with our Realtors® being very creative to accommodate them while practicing safe social distancing.”

Sold dollar volume was up in March 30%, jumping from approximately $157 million last March to more than $204 million this year.  The increase in volume was fueled by a more than 20% increase in units sold and a nearly 9% increase in median sold price.  There were 601 properties sold this year compared to 499 last March with a median price holding steady from February at $316,000 compared to $290,000 in March 2019. 

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 more than 25% with houses averaging 41 days on the market in March 2020 compared to 55 days in March 2019.

Overall active listings were down more than 18% this March compared to last year and new listings coming on to the market were down over 6%.  Prospective buyers have 1,191 homes to choose from right now, with 998 new listings coming onto the market.  “With the stay-at-home order, we are now seeing a relative pause in showing activity,” continues Fosdick.  “However, we are actively engaged with our clients and continue to provide them market information. We have numerous homes ready to list as soon as the restrictions are lifted. We are confident that our clients are poised and prepared to take action as soon as they get the all clear.”

The commercial real estate market is also in flux while investors wait and watch for the extent of the virus’ impact on people’s health and the duration of the government-enforced shutdowns.  Locally, commercial brokers are reporting closings still taking place and properties still going up on the market.  Some contract timelines are now elongated due to market conditions and social distancing, but many businesses are doing their best to keep pushing forward, looking ahead to the light at the end of this pandemic.  Comments former FAAR Board Member and commercial Realtor® Ben Keddie, “Admittedly it’s hard to say with much certainty at this point to what extent the Commercial Real Estate market will be effected, as no one has a playbook and truly everyone is impacted by this.  The Federal Government seems poised to stop at nothing to get the economy back on track. Exactly how that stimulus takes shape and the expediency with which it hits the streets will help determine the extent of the damage on the business community.“

The Association is encouraged by the continued robust activity in the real estate market and thanks its more than 1,700 members for quickly transitioning a very hands-on business to one done almost exclusively online in the wake of social distancing requirements.  2020 FAAR President Drew Fristoe states, “The Association and its members are doing their part to flatten the curve and beat this virus.  The FAAR office is closed and the staff is working remotely to serve our members.  Instead of hosting in-person meetings and classes, we have shifted nearly all of our programming to an online format so that we can continue to provide great education and information to our members.  Our members are still showing houses, closing deals, and serving clients and doing it all while following social distancing guidelines and employing the latest digital technology.  The Fredericksburg-area real estate market is open for business!”

February market hot, but what lies ahead?

February continued the local real estate market’s trend of increasing sales volume and median price coupled with decreasing days on market   FAAR Board Member Randy Walther states, “The market was active for February continuing a strong winter season. My office was busy with sellers listing early to take advantage of warm weather and sparse listings in the area. Buyers are seeing the benefit of historically low interest rates.”  But the excitement over a hot February is certainly tempered by fears of a coronavirus-fueled recession and what that could mean for real estate across the country. 

Sold dollar volume was up in February nearly 35%, jumping from approximately $106.4 million last February to more than $143.5 million this year.  The increase in volume was fueled by a more than 20% increase in units sold and a more than 15% increase in median sold price.  There were 429 properties sold this year compared to 357 last February with a median price of $316,000 in 2020 compared to $274,000 in February 2019. 

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 8% with houses averaging 56 days on the market in February 2020 compared to 61 days in February 2019.

Overall active listings were down nearly 18% this February compared to last year, but the month posted a more than 8% increase in new listings coming on the market.  Prospective buyers have 1,140 homes to choose from right now, with 783 new listings coming onto the market.  Commenting on the market for February, Walther observes, “It appears that there is no real buying and selling season anymore. When a property comes on the market there is always a surge of activity. If there was more to sell there would be more buyers.”

Virginia Realtors® Chief Economist Dr. Lisa Sturtevant advises that the economic fundamentals that support a healthy housing market remain strong in the Commonwealth and that the housing market is well-positioned to handle a short-term impact on the economy from coronavirus.  High-income households could see dampened demand as they tend to have more money tied up in the stock market and may be planning to use those now fluctuating resources on a new home purchase.  If concern about the virus continues, there could be a modest slowdown in traffic and homes sales in the weeks to come.  However, if that does happen, it is expected to be of short duration and the lost sales will likely be made up in future months

January Posts Big Gains in Local Real Estate Market

January kicked 2020 off to a swift start in the local real estate market echoing sentiments heard from Realtors® across the region that the spring market is starting earlier and earlier in recent years.  Sold dollar volume was up 38% year-over-year, going from approximately $89 million in January of 2019 to over $122.7 million in January of 2020.  The increase was fueled by a nearly 31% jump in units sold with 385 properties changing hands this January compared to 295 last year.  Median sold price saw modest appreciation with a 5% year-over-year increase, going from $289,990 last year to $305,000 this January. 

“Over the past few years, our spring market has started earlier and earlier,” states FAAR Board Member Clay Murray.  “This year is no different with our sellers lining up listing appointments around the holidays and our buyers ready to explore listings starting on New Year’s Day.  We’re confident more homes will be coming to market as we experience this trend of an earlier spring market.” 

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 14% with houses averaging 56 days on the market in January 2019 compared to just 48 days in January of 2020. 

The available supply of homes was a big story in January, falling to a historic low of just 1.96 months of supply, with 1,149 active listings.  Months of supply calculates how long it would take for all the current homes on the market to sell, given the pace of sales in the market.  A balanced market will usually see a 4 to 6-month supply of homes, under 2 shows a very competitive market and a potential lack of options for buyers.  Ten years ago, the available supply of homes exceeded 5 months.  To take a trip even farther back down memory lane, in January of 2000, there were 200 homes sold with a median sales price of $141,939 and average days on market exceeding 70 days. 

Caroline, Spotsylvania, and Stafford saw significant jumps in real estate activity.  Caroline County led the pack with a more than 115% increase in volume of sales fueled by a 72% increase in homes sold.  Spotsylvania County saw a nearly 50% increase in both volume of sales and units sold.  Stafford Count rounded out the top three in the region with a nearly 30% increase in volume sold and a 23% increase in units sold. 

Continues Murray, “I’m not sure if we can pinpoint the cause of the earlier buyer activity to a new year, new home mentality or changes in the local school calendars, or simply less inclement weather, but it’s a definite trend we’re seeing and guiding clients through accordingly.” 

2019 Was a Great Year for Local Real Estate Market

The 2019 real estate market posted significant gains in total sold dollar volume and units sold, experienced modest price appreciation, and saw seriously increased competition with low inventory and very low days on market.  The year closed out with a total sold dollar volume of $2.324 billion which represents a nearly 21% increase over the year-end totals for 2018.  The market saw a modest 3.34% year-over-year increase in median price, going from $299,990 in 2018 to $310,000 in 2019.  Units sold increased over 16%, finishing out the year at 6,978 compared to 5,997 units sold in 2018. 

2020 FAAR President Drew Fristoe states, “2019 was a great year.  Like most years, it had its ups and downs, and saw considerable challenges with a constrained inventory, but overall sales were up and 2020 is already off to a strong start.  I personally have clients in the wings, just waiting for the right time to jump into the market.” 

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 a whopping 42% with houses averaging 72 days on the market in 2018 compared to just 42 days in 2019.  Over 32% of homes sold in 2019 went under contract in 10 days or less.  The vast majority of sales were of 3 or more-bedroom single family homes, with that segment making up over 80% of the total units sold. 

December, a traditionally slow month in real estate, bucked traditional trends and ended the year with an impressive 68% increase in sold dollar volume and an over 56% increase in units sold.  The month saw more than $166.5 million in total sold dollar volume, compared to just over $99 million in December of 2018.  Median price was up about 2%, settling at $314,388 this December compared to $307,500 last December.   Units sold increased from 309 last year to 483 this year, with significant increases in both attached multifamily and detached single family. 

FAAR agents are anticipating another strong year in the local market with modest price appreciation.  Limited inventory will continue to plague the market, but continued low interest rates, strong consumer confidence, and a growing economy will provide a solid foundation for the real estate market in 2020.

NAR Real Estate Forecast: Slower Growth, Price Gains to Continue

From the National Association of Realtors Real Estate Forecast Summit on December 11, 2019….

 

Slower Growth, Price Gains to Continue

“Real estate is on firm ground with little chance of price declines,” says NAR’s Chief Economist Lawrence Yun. “However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.”A group of prominent real estate industry economists today released a consensus economic and real estate forecast that projects continued but slowing growth in 2020. Meeting at the National Association of REALTORS®’ Washington, D.C., headquarters for the first-ever Real Estate Forecast Summit, the economists said they expect the U.S. economy to continue expanding next year and real estate prices to keep rising. To create the forecast, NAR surveyed the economists Dec. 2-5, and their responses were compiled and averaged.

Yun is one of 16 economists participating in today’s Summit, along with Leslie Appleton-Young of the California Association of REALTORS®; James Chessen of the American Bankers Association; James Gaines of the Real Estate Center at Texas A&M University; Danielle Hale of realtor.com; Danielle Nanayakkara-Skillington of the National Association of Home Builders; Brad O’Connor of the Florida REALTORS®; and others.

Recession remains unlikely but not out of the question in 2020. The economists predicted a 29% probability of a recession with forecasted gross domestic product growth of 2.0% in 2020 and 1.9% in 2021. The group expects an annual unemployment rate of 3.7% next year with a small rise to 3.9% in 2021.

Asked what action the Fed might take in 2020, 69% of the economists said they expect no change in the federal funds rate (the rate at which banks borrow money), while 31% expect the Fed to lower the rate next year. The group expects the 30-year fixed-rate mortgage to average 3.8% in 2020 and 4.0% in 2021.

Cooler Weather Can’t Chill the November Real Estate Market

The real estate market posted a strong November with gains in total volume, median price, and units sold and a decrease in days on market.  Total sold dollar volume increased nearly 24%, going from approximately $120.3 million in November of 2018 to nearly $148.7 million in November of this year.  The increase was fueled by a nearly 4% year-over-year increase in median price which came in at $311,700 for this November, compared to $300,000 for last November.  Units sold increased nearly 18% with 450 homes being sold this year compared to 382 last year. 

The strong market was fueled by strong activity in nearly every jurisdiction in the FAAR footprint, with the exception of Stafford County and the City of Fredericksburg.  The City saw a 7% increase in median price but modest declines in total sold dollar volume and units sold.  Stafford had a flat month, remaining virtually unchanged from last year.  Caroline County paved the way with a 101% increase in total sold dollar volume.  Caroline County along with Orange, King George, and Spotsylvania all experienced nearly double digit increases in total sold dollar volume and median price, and in many cases, units sold.  

“November was a good month,” comments 2019 FAAR Board Member Deb Ellis.  “Agents are reporting robust activity with more activity than the same time last year.  Inventory remains challenged, but there are plenty of buyers looking.”

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, decreased more than 15% with houses averaging just 44 days on the market in November of 2019 compared to 52 days in November of 2018. 

Active listings declined slightly from November of last year, seeing a 6% dip.  There were 1,435 available properties on the market at the end of November, down by 100 homes from last year.  New listings posted a modest increase of nearly 6%, with 536 new homes coming onto the market this November compared to 507 last year.  Future settlement activity continues to post strong numbers with over 34% new properties under contract in November of 2019 compared to November of 2018. 

Local Real Estate Market Remains Strong in October

The October real estate market posted a large increase in sold volume fueled by double digit rise in number of units sold.  Total sold dollar volume increased from $138 million in October of 2018 to $178.1 million in October of 2019, representing a 29% year-over-year increase.  That rise was powered by 535 homes sold in the month, a more than 100 home increase from the October 2018 total of 419, a nearly 28% increase. Median sold priced increased 5% going from $295,000 in October of last year and increasing to $310,000 in October of 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, decreased over 11% with houses averaging just 40 days on the market in October of 2019 compared to 45 days in October of 2018. 

Conventional loans continue to lead the way in transaction financing with 198 loans for the month October.  VA was just behind with 123 and FHA came in at 99. 

Overall active listings were down nearly 3% this October compared to last year, but the month posted a nearly 8% increase in new listings coming on the market.  Prospective buyers have 1,610 homes to choose from right now, with 791 new listings coming onto the market.  Commenting on the market for October, FAAR Board Member Carol Sondrini observes, “Inventory was low and it’s harder for buyers to find what they’re looking for.  Overall sentiment is that it’s a good strong market and a good time to buy and sell, but there are not enough options out there.”

Median house price up $20K across Fred region

The local economy remained healthy throughout the 3rd quarter of 2019.  Unemployment remains very low along with interest rates with no indication of either situation changing in the near future.  Sales continued to grow throughout the FAAR footprint, with 5% more sales than a year ago.  Median price rose sharply in the 3rd quarter, climbing $20,000 to $310,000 region-wide.  All jurisdictions saw price gains, led by King George County, which saw an 11% increase in median sales price.  

Want more???  Check out all the great information, charts, graphs, and narrative explanations.  You can use any and all of this data in your communications with clients.  So look super sharp at your next listing or buying presentation and take some of this expert data with you!

FAAR Cereal Drive Success

Each year, the Fredericksburg Area Association of Realtors® (FAAR) collects cereal to donate to area food banks. This year, FAAR members collected over 17,000 boxes of cereal. FAAR would like to recognize the members and volunteers who worked so hard to collect so much cereal for those in need.

Affiliate collecting the most boxes: Sandra and Phillip Blake with MBH Settlement with 156 boxes

Grand Prize: 1st Choice Better Homes and Land with 5,214 boxes

Most Improved: Long and Foster, Fredericksburg with 3,861 boxes

Participants: 1st Choice Better Homes and Land, Century 21 New Millennium, Long and Foster Fredericksburg, Coldwell Banker Elite Stafford, United Real Estate Premier, Century 21 Redwood-Locust Grove, Lake Anna Realty, Coldwell Banker Elite Massaponax, Nest Realty, Coldwell Banker Elite Spotsylvania, MBH Settlement, The Gillies Team with RE/MAX Real Estate Connections, Century 21 Redwood Fredericksburg, Keller Williams Fredericksburg, Coldwell Banker Elite Fredericksburg, Spring Arbor, RE/MAX Legacy, FAAR, The Title Professionals, Century 21 Redwood Stafford, Virginia CU Realty, Exit Elite Realty, Exit Realty Group, Weichert Realtors, Atlantic Coast Mortgage, RE/MAX Supercenter, Coldwell Banker Elite King George, Keller Williams Capital Properites, CTI Real Estate, and Holt for Homes.

FAAR would like thank everyone who participated and all of those who donated cereal. According to estimates from the Food Bank, we have stocked their shelves and those of other food pantries for nearly three weeks.

Summer Isn’t Over in the Real Estate Market

September proved another active month in the local real estate market with double digit increases in total sold dollar volume and units sold and a modest increase in median price compared to last September.  Total sold dollar volume came in at approximately $184.5 million compared to $130.8 million in September of 2018, representing a nearly 42% year-over-year increase.  That increase was fueled by a more than 36% uptick in units sold, with 560 properties changing hands in September of this year compared to 411 last year.  A modest 3.8% increase in median sold price also helped things along, with September coming in at $305,000 compared to $293,000 last year. 

“September was a period where many sellers experienced decent or strong showing activity on their homes.  Inventory remains tight in the $200,000 to $300,000 price range,” comments FAAR Board of Director Chip Taylor.

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, decreased nearly 26% with houses averaging just 49 days on the market in September of 2019 compared to 66 days in September of 2018. 

Inventory numbers remain tight, with the second straight month of decreased active listings after nearly a year of increasing inventory.  Active listings posted a more than 8% decrease with 1,637 properties on the market in September of 2019 compared to 1,782 in September of 2018.  There was a modest increase in new listings with 755 new homes coming on the market in September compared to 715 in September of last year, representing a 5.6 % increase.  There was a notable increase in new under contracts with 213 in September of last year and 390 this year, representing a more than 83% year-over-year surge.  “The end of the month did witness an uptick in new ratified contract activity with interest rates remaining at historic low levels,” continued Taylor. 

August Market Continues to Sizzle

The summer market continued to sizzle with an active August that posted gains in total volume, median price, and units sold with a large decrease in days on market.  Total sold dollar volume increased nearly 13%, going from approximately $191.2 million in August of 2018 to nearly $215 million in August of this year.  The increase was fueled by a more than 5% year-over-year increase in median price which came in at $315,900 for this August, compared to $300,000 for last August.  Units sold increased over 8% with 644 homes being sold this year compared to 595 last year. 

“August was a good month,” comments 2019 FAAR President Drew Fristoe.  “It was a little odd having both the City and Stafford go back to school so early in the month.  It pushed the traditional lull around when school starts to sooner in the month, but that certainly didn’t dampen buyer enthusiasm.”

The City of Fredericksburg reached a notable milestone in August by breaking the $400,000 median price mark for the month, settling at $405,000.  This is the first time a jurisdiction in the region has ever broken the $400,000 mark.  However, the small size of the City’s market makes it more susceptible to large market swings.  Over the last 10 years, the City’s lowest price was in March of 2011, posting a median price of just $127,450. 

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, decreased nearly 21% with houses averaging just 50 days on the market in August of 2019 compared to 63 days in August of 2018. 

Active listings remained virtually unchanged from last August.  There were 1,762 available properties on the market at the end of August, down by just 12 homes from last August.  New listings posted a modest increase of nearly 6.5%, with 936 new homes coming onto the market this August compared to 879 last August.  Future settlement activity continues to post strong numbers with over 49% new properties under contract in August of 2019 compared to August of 2018. 

FAAR Announces Endorsements for 2019 Local Elections

The Fredericksburg Area Association of REALTORS® (FAAR) announces endorsements for local Board of Supervisors and Commissioner of the Revenue races on the ballot for the November 5 general election.  The endorsed candidates represent areas throughout FAAR’s service area of the counties of Caroline, Stafford and Spotsylvania.

“As active members of our local communities, REALTORS® have a strong interest in this year’s elections.  I am pleased with the impressive slate of candidates that FAAR has endorsed this year.  These individuals will contribute much to our local communities by promoting economic development and protecting homeowners’ rights,” stated FAAR’s 2019 Public Policy Committee Chair Christine Singhass.  “FAAR strongly supports each of the candidates endorsed for public office and looks forward to working with these individuals at the local level.  The real estate industry is an integral part of our local economy and it is vital that REALTORS® help elect candidates who understand those connections and are willing to work with us on issues of importance.”

FAAR has endorsed the following candidates:

Caroline County
Mark Bissoon (Commissioner of the Revenue)
Jeff Sili (Caroline County Board of Supervisors, Bowling Green District)

Spotsylvania County
Dr. Raymond A. Bell, Jr.  (Spotsylvania County Board of Supervisors, Livingston District)

Stafford County
Scott Mayausky (Commissioner of the Revenue)

July Housing Market is a Scorcher

July proved a hot month for both the weather and the local housing market.  “The July real estate market started with a bang and was hot all month,” states FAAR Board of Director Cindy LeBrun.  Total sold dollar volume increased nearly 18%, coming in at approximately $208.7 million in July of 2018 and jumping to $245.6 million in July of this year.  The increase in sold volume corresponds to a nearly 13% increase in units sold.  In July of 2018, there were 639 units sold.  In July of 2019, there were 80 more homes sold, coming in 719.  Median price also increased nearly 5% year-over-year, going from $310,000 last July to $324,900 this July. 

LeBrun continues, “I was busier in July than last year with buyers and the majority were first-time buyers.  The interest rates were steady and with the inventory being low, we had to move quickly and there was still competition with several other offers.  For my sellers, I analyzed the current market conditions to identify the correct price range for their home to sell so we could take advantage of this sellers’ market.”

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, decreased 8% with houses averaging 57 days on the market in July of 2019 compared to 62 days in July of 2018. 

Active listings were up for the seventh month in a row, albeit by a very small margin.  There was just one more house on the market at the end of the month then there was last year, representing 0.06% increase.  There were 1,729 available properties on the market at the end of July.  New listings posted a slight 2% decrease with 905 new homes coming on the market this July compared to 925 last year.  Future settlement activity continues to post strong numbers with over 52% new properties under contract in July of 2019 compared to July of 2018. 

June Housing Market Posts Strong Numbers Despite Fewer Sales in Key Localities

June posted strong numbers despite a double-digit sales reduction in market leader, Stafford County.  Total sold dollar volume increased 5.8%, settling at approximately $236.8 million in June of this year, compared to $223.9 million in June of 2018.  Units sold increased over 5%, going from 678 last June to 714 units in June of this year.  Median price saw a 3.3% year-over-year increase, going from $305,000 in June of 2018 to $315,000 in June of 2019.

However, the positive numbers from a regional perspective do not always translate directly into individual counties.  Stafford County, the regional leader in home sales, saw a 10% year-over-year decrease compared to numbers from June of 2018.  Stafford saw exactly 300 closed sales in June of last year, compared to 269 for this year, which corresponds to a more than 9% reduction in total sold dollar volume.  Spotsylvania also saw a decrease in home sales compared to last year.  The county experienced a nearly 8% drop in the number of sales which led to a nearly 6% reduction in total sold dollar volume.  Orange, King George, and Caroline counties all experienced double digit increases in number of units sold in June of this year compared to last year. 

FAAR Board of Director Carrie Danko comments, “Summer may be heating up but the market seems to be cooling off in some areas. After an extremely active spring market, the lazy days of summer have hit. The lull in the market could be due to school ending earlier than normal in some jurisdictions or constrained inventory in highly sought-after price points. The low inventory keeps our region in a sellers’ market but the continued low interest rates make this a great time for buyers, too.”  

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, decreased almost 7% with houses averaging 56 days on the market in June of 2019 compared to 60 days in June of 2018. 

Active listings were up for the sixth month in a row, with 1,755 listings on the market representing a nearly 6% year-over-year increase.  New listings posted a 4.6% increase with 987 new homes coming on the market this June compared to 944 last year.  Future settlement activity continues to post strong numbers with over 37% new properties under contract in June of 2019 compared to June of 2018.  Inventory overall continues to remain low, especially in the lower-priced market segments.  The median price of active listings is currently $396,000, the highest it’s been in more than 10 years.    

FAAR Partners with NAR in Amicus Brief Supporting AHPs

The Fredericksburg Area Association of Realtors® (FAAR) has agreed to join the National Association of Realtors® (NAR) amicus brief in defense of the Department of Labor’s (DOL) Association Health Plan rule. Amicus briefs are legal documents filed in appellate court cases by non-litigants that have a strong interest in the subject matter in question.

Earlier this year, a federal court ruled that provisions of the DOL’s rule were unlawful, a ruling adversely impacting Realtors® seeking more cost effective and comprehensive health insurance solutions through AHP options.

“Passage of the Patient Protection and Affordable Care Act resulted in significant regulatory changes to the individual insurance market, some of which have benefited Realtors®,” the brief reads. “However, ACA changes have also resulted in significant increases in health care costs, leading many individuals to forgo coverage, which jeopardizes the health, safety and financial stability of their families and others.” 

FAAR, along with a number of other state and local associations, has agreed to join NAR in protecting AHPs, which has been the subject of litigation since shortly after the rule was finalized in June of last year. Others participating in the amicus brief include five state and local associations that are currently offering AHPs to members, including the Baldwin County Association of Realtors® in Alabama, the Greater Las Vegas Association of Realtors®, the Kansas City Regional Association of Realtors®, the Nevada Realtors®, and the Tennessee Realtors®.

To date, over 3,000 Realtors® and their families have found cost-effective health insurance solutions through these five association health plans. Many more Realtor® associations are also exploring AHP options but have been delayed due to this litigation uncertainty. “FAAR is supporting this amicus brief to support the work already happening in Virginia to expand access to AHPs.  Too many of our members are paying exorbitant premiums or forgoing insurance altogether,” states 2019 FAAR President Drew Fristoe. 

If the courts final ruling is adverse and pending any appeals, independent contractors may lose the ability to access insurance coverage through an AHP, sacrificing valuable savings on premiums, and broader network access with more comprehensive benefits. Overall, AHP plans have proven to have lower cost options and better overall coverage, leading countless sole proprietors and small employers alike to purchase association health plans over the past year.

May Sees Continued Strength in Local Real Estate Market

May posted strong numbers indicating that the spring selling season is well underway.  Total sold dollar volume increased 15%, settling at approximately $224.5 million in May of this year, compared to $195.2 million in May of 2018.  Units sold increased nearly 9%, going from 608 last May to 661 units in May of this year.  Median price saw a 6% year-over-year increase, going from $299,450 in May of 2018 to $318,000 in May of 2019, holding steady from last month. 

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, decreased almost 2% with houses averaging 54 days on the market in May of 2019 compared to 55 days in May of 2018. 

Active listings were up for the fifth month in a row, with 1,755 listings on the market representing a nearly 6% year-over-year increase.  New listings posted a 1% increase with 1,141 new homes coming on the market this May compared to 1,128 last year.  Future settlement activity continues to post strong numbers boding well for sales in June with over 45% new properties under contract in May of 2019 compared to May of 2018.  Inventory overall continues to remain low, especially in the lower-priced market segments.  “May saw heavy traffic in contracts, but the lack of new listings coming on the market will create a logjam soon,” states FAAR Board Member Kevin McGrath.  The last two months posted very similar numbers with increasing prices and volume sold coupled with large increases in homes under contract.  A steady stream of new listings will be needed to satisfy this demand and that will not happen with a mere 1% increase in new homes coming on the market. 

April Brings Strong Start to the Spring Selling Season

The lackluster first quarter start to the 2019 real estate market gave way to a stronger April, notes FAAR Board of Director Phillip Blake.  “Lower interest rates have helped push buyers off the fence and into the market, with some consumers choosing to purchase a home rather than rent,” comments Blake.  April of 2019 saw increases in total sold dollar volume, median price, and units sold while posting a decrease in days on market, indicating a strong real estate market as we look ahead to the spring selling season.

Total sold dollar volume increased over 15%, settling at approximately $189.8 million in April of this year, compared to $164.6 million in April of 2018.  Units sold increased nearly 11%, going from 517 last April to 573 units in April of this year.  Median price saw a 7.8% year-over-year increase, going from $295,000 in April of 2018 to $318,000 in April of 2019. 

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, decreased almost 3% with houses averaging 67 days on the market in April of 2019 compared to 69 days in April of 2018. 

Active listings were up for the fourth month in a row, with 1,652 listings on the market representing a more than 7% year-over-year increase.  New listings posted a slightly less 1% increase with 1,132 new homes coming on the market this April compared to 1,122 last year.  Future settlement activity continues to post strong numbers boding well for sales in May with over 44% new properties under contract in April of 2019 compared to April of 2018.  Inventory overall continues to remain low, especially in the lower-priced market segments.  “Some agents have found themselves in multiple offer situations,” states Blake.  “As we have seen in past spring markets, upward pressure on prices combined with comparative sales trailing the market have resulted in some low appraisals.  This is generally short-lived.”  Blake believes that continued low interest rates combined with a healthy local economy will keep buyers hungry and our market on track for a strong 2019.

March Sees Increasing Sales, Decreasing Prices

The start of spring usually ushers in the high season for the local real estate market.  March numbers did not disappoint, providing a strong foundation for the market that will hopefully continue into April and beyond.  “The spring market is in full swing,” states FAAR 2019 President Drew Fristoe.  “Sellers are starting to get their homes on the market,” continues Fristoe.  “Lower interest rates are giving some buyers the push to start looking.”

Total sold dollar volume increased 5.6%, settling at approximately $157.3 million in March of this year, compared to $149 million in March of 2018.  Unit sold increased over 5%, going from 474 last March to just shy of 500 units in March of this year.  Median price saw a 3% year-over-year decrease, declining from $299,500 in March of 2018 to $290,000 in March of 2019. 

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 3% with houses averaging 86 days on the market in March of 2019 compared to 83 days in March of 2018. 

Increasing inventory continues to be a trend in the local market.  Active listings were up nearly 12% from last year, going from 1,310 available properties in March of 2018 to 1,464 in March of this year.  In addition, there were 40% more homes under contract at the close of the month than compared to last year.  In March of 2018, there were 357 pending contracts throughout the Fredericksburg market.  In March of 2019, that number increased to 500 pending contracts.  Those transactions that reach a successful settlement will likely close in April and May, providing a continued foundation for a strong spring real estate market.

FAAR Holds Annual Awards Event

The Fredericksburg Area Association of REALTORS® (FAAR) held its annual Awards Gala on April 10, 2019 at the Fredericksburg Country Club.  Approximately 130 members were in attendance for the festivities, which included an awards ceremony and fundraiser.

Proceeds from the fundraiser benefited the Fredericksburg REALTORS® Foundation, whose efforts go to support local non-profit organizations that help individuals and families secure and retain shelter.  Thanks to donations from FAAR’s REALTOR® and affiliate members, the Foundation was able to raise over $1,200.

In addition to the Foundation fundraiser, awards were handed out for Rookie Salesperson of the Year, Manager of the Year, REALTORS® Choice, REALTOR® of the Year, Educator of the Year, and Melanie Thompson Award. In addition, 25 members were recognized for achieving the Professional Honor Role for 2018.  The Professional Honor Role spotlights members who have made contributions to the real estate industry, the Association, and the community.

 

The following individuals received awards for 2018:

Realtors® Choice:  Pam Downing, Coldwell Banker Elite

Rookie Salesperson of the Year: DeAnna Hamn, 1st Choice Better Homes and Land

Melanie Thompson Award:  Carol Sondrini, Coldwell Banker Elite

Educator of the Year:  Kevin McGrath, Long and Foster Real Estate

Manager of the Year:  Deb Ellis, Coldwell Banker Elite

Realtor® of the Year:  Kevin McGrath, Long and Foster Real Estate

 

Professional Honor Role

Sabrina Anderson
Exit Realty Group

Tricia Barnes, ABR, GRI, CRB, ABRM
1st Choice Better Homes & Land

LeAnn Black
1st Choice Better Homes & Land

Marla Aste
1st Choice Better Homes & Land

Suzanne Brady, ABR, SRS
United Real Estate Premier

Jennifer Caison
Coldwell Banker Elite 

Valerie Dellandre
Virginia CU Realty

Linda Dort, ABR, CRS, GREEN
Century 21 New Millennium

Linda Fosdick, ABR, GRI, CRS, SRS
Dockside Realty

Janet Holt
Holt for Homes

Pam Kuper
Century 21 New Millennium- Fredericksburg

Linda Laub-Canty, ABR, GRI, CRS, SRES
1st Choice Better Homes & Land

Cindy LeBrun, ABR, CRS, SRS, SRES
Exit Realty Group

Lynn Lenahan, ABR, GRI
1st Choice Better Homes & Land

Erin Lewis
Nest Realty Group

Brooke Miller, GRI, CRS
Long & Foster Real Estate, Inc.

Laura Monaghan, SRS
Green Tree Realty

Mary Beth Rich, ABR
Century 21 New Millennium- Fredericksburg

Anthony “Tony” Shade, ABR
RE/MAX Allegiance

Sharon Shade, ABR, ABRM
RE/MAX Allegiance

Sarah Stelmok, GRI, SRES
Nest Realty Group

Chip Taylor
Long & Foster Real Estate, Inc.

Penny Traber, ABR, GRI, CRS, SRS
1st Choice Better Homes & Land

Ginny Vickers, ABR, SRS
1st Choice Better Homes & Land

Sha Williams- Hinnant, ABR, CRS, GRI, CIPS, PMN, SRES
1st Choice Better Homes & Land

FAAR Public Policy Director, Kim McClellan, Receives Prestigious RCE Designation from NAR

Kim McClellan, Public Policy Director of the Fredericksburg Area Association of REALTORS®, is being honored by the National Association of REALTORS® with the REALTOR® Certified Executive (RCE) designation, which recognizes exceptional efforts made by REALTOR® association executives and professional staff.  McClellan is one of over 500 REALTOR® association executives and professional staff who have achieved this mark of excellence.

Prior to becoming a candidate for the RCE designation, applicants must document their association management and academic experiences. Once they have completed this first step, eligible candidates must successfully complete a multiple-choice exam, which is based on a comprehensive understanding of association operations and management practices.  Candidates must demonstrate knowledge of areas critical to REALTOR® association management including association law, governance, and issues related to member services.  To retain the designation, RCEs must be re-certified every four years

February Picks Up the Pace in Local Real Estate Market

While February statistics tracked fairly closely to 2018 numbers, pending sales indicate a warming in the local real estate market.  Total sold dollar volume increased 2.4% in February, coming in at $106.4 million compared to nearly $103.9 million in February of 2018.  The number of units sold increased year-over-year almost 2.6%, going from 348 last year to 357 this February.  Median sales price fell by close to 5%, declining from $287,750 in February of 2018 to $274,000 in February of 2019.     

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 8.5% with houses averaging 86 days on the market in February of 2019 compared to 94 days in February of 2018. 

Inventory posted the biggest story in the February real estate numbers.  Active listings were up nearly 19%, going from approximately 1,100 available properties in February of 2018 to nearly 1,400 for this year.  Overall, inventory gains have been so small that most buyers in the market wouldn’t notice, but having 200 more homes to choose from this February compared to last can make a difference.  In addition, February pending home sales portend a solid March with an over 47% year-over-year increase compared to last year.  In February of 2018, the market ended the month with 230 homes under contract compared to the 339 that are currently under contract. 

The commercial real estate market is also an integral part of our local economy.  “The commercial market is moving along nicely,” according to commercial Realtor® and FAAR Board Member Ben Keddie.  Most major commercial statistics show that the region is performing well and has been for a number of years.  Keddie continues, “What we are expecting in 2019 includes some of the marquee projects that have been in discussion for a few years finally making great progress including Liberty Place, the new baseball stadium, and hopefully a local Veterans Administration clinic.” 

FAAR Partners with Local Housing Non-Profits to Expand Affordable Housing Opportunities

On any given day, 200 adults and children are homeless in our community.  Homelessness is often a root cause of many other issues such as poor health, trouble in school, and lack of employment.  No one can feel stable without a place to call home. 

The Fredericksburg Area Association of Realtors® (FAAR) has partnered with local housing non-profits to help expand affordable housing opportunities through the launch of the Stable Homes Partnership.  FAAR began working last year with housing non-profits through the Continuum of Care (CoC), a federally-mandated local planning body that coordinates housing and services for homeless families and individuals. 

Under the CoC umbrella, FAAR partnered with Micah Ecumenical Ministries, Loisann’s Hope House, Empowerhouse, and the Thurman Brisben Center to create a marketing and recruitment plan to expand the pool of property owners’ in the region willing to rent to families and individuals facing housing challenges.  The partner organizations assist tenants with rent and security deposits, while also providing case management and regular property inspections to smooth the path for long-term stability and success.  Property owners engaged in the program have access to a ready pool of quality tenants paying fair market rent, reducing costly downtime advertising and showing their properties. 

FAAR and the CoC agencies are hosting an informational session about the Stable Homes Partnership on Tuesday, March 19, 2019 with identical sessions at 9:00am and 7:00pm.  This informational meeting features an overview of the program and panel discussions with both property owners and case managers involved in the program.  The events will take place at the Fredericksburg Area Association of Realtors® headquarters located at 2050 Gordon W. Shelton Blvd, Fredericksburg, VA, 22401.  For more information or to RSVP for one of these events, please email kmccllelan@faarmembers.com

January Ushers in a Sluggish Start to 2019 Real Estate Market

The 2019 real estate market kicked off with mixed results.  Total sold dollar volume fell 14.5% in January, coming in at $88.961 million compared to over $104 million in January of 2018.  The number of units sold decreased year-over-year over 13.7%, going from 342 last year to 295 this January.  Median sales price remained relatively static, posting a meager 1.85% increase.  The median price in January of 2018 was $284,725 and it increased to $289,990 in January of 2019.   

FAAR Board of Director Clay Murray explains, “January was a challenging month in local real estate due to a number of factors: continued low inventory, frigid weather, normal market seasonality, and a partial government shutdown affecting buyers, sellers, and some government-backed mortgage programs, namely USDA loans. Our local market is strong, but those external factors added a hint of temporary uncertainty.”

Some jurisdictions saw double digit declines in sales volume compared to last January.  Caroline County saw a 25% reduction in the number of units sold, Spotsylvania County came in at over 35% fewer units sold, and King George led the decline in sales with a 60% reduction in January of 2019 versus last year.  Even Stafford County, which avoided the sales declines that plagued some jurisdictions at the end of 2018, saw a 7.4% reduction in the number of sales.    

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 6% with houses averaging 94 days on the market in January of 2019 compared to 100 days in January of 2018. 

Murray is optimistic that the market will shake off the sluggishness of January and recover for the traditionally busy spring market. “The month ended with a reinvigorated market, ripe and ready to enter a strong spring a little early with a bonus of good news on interest rates.”

2018 Local Housing Market Posts Modest Gains

The 2018 real estate market posted gains in total sold dollar volume and median price, but saw a slight reduction in units sold.  The year closed out with a total sold dollar volume of $1.925 billion which represents a 3.7% increase over the year-end totals for 2017.  The market saw a 4.3% year-over-year increase in median price, going from $287,556 in 2017 to $299,990 in 2018.  Units sold remained nearly static from 2017, finishing out the year at 5,997 compared to 6,036 units sold in 2017.  The year-over-year decline was less than 1% and could be driven in part by inventory constraints. 

2019 FAAR President Drew Fristoe states, “2018 had its usual ups and downs, but overall it was a great year.  Inventory levels in the $200,000 to $300,000 price range are still on the low side and very competitive.  There is still a lack of affordable entry-level housing in the Fredericksburg area.”

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 over 12% with houses averaging 72 days on the market in 2018 compared to 82 days in 2017.  The vast majority of sales were of 3 or more-bedroom single family homes, with that segment making up over 93% of the total units sold. 

December, a traditionally slow month in real estate, ended the year with significant declines in units sold and total sold dollar volume compared to December of 2017.  The month saw just over $99 million in total sold dollar volume, down nearly 17% from December of 2017.  This is the first month that the region has fallen below $100 million in sales since February of 2017.  Median price posted the only notable year-over-year increase in the market, settling at $307,500 in December, representing a more than 10% increase.   Units sold were down over 23% from December of 2017, with 403 properties selling last year compared to just 309 in December of 2018.  The decrease in units sold impacted both attached and detached homes.  Attached homes sold decreased by over 36% while detached homes sold decreased over 21%. 

Days on market remained nearly static with houses spending an average of 87 days on the market in December of 2018 compared to 86 days last December.  Active listings were up 2.5% with buyers having 1,338 listings to choose from.  New listings coming onto the market were down nearly 6% with 398 sellers putting their homes on the market in December of 2018 compared to 423 in 2017. 

Several factors in 2019 could impact the performance of the local real estate market.  “Trying to predict what will happen with the market in 2019 is a hard one,” says Fristoe.  “The partial government shut down and the uncertainty with how long it will last, the volatility in the stock market, and raising interest rates are all going to be factors in the 2019 market. Buyers and sellers are keeping an eye on all of these factors.”

*brightMLS has changed the calculation for days on market leading to a higher overall number compared to past reports.  The new calculation accumulates days when a listing is “active under contract” where the old system paused accumulation of days on market when a listing was in any contingent status.”

November Real Estate Market Sees Typical Seasonal Slowdown

The November real estate market experienced a typical seasonal slowdown with decreases in total sold dollar volume and units sold and an increase in median sales price.  Total sold dollar volume came in at $120.3 million, representing a nearly 3.8% year-over-year decrease from the November 2017 number of $125 million.  Units sold decreased from 401 properties sold in November of 2017 to 382 properties sold in 2018.  Median price increased 5.2% going from $285,000 last November to $300,000 this November.

“In November, the real estate market experienced a typical seasonal slowdown as we approached Thanksgiving,” commented FAAR Board of Director Arlene Mason.  “Showing activity slowed early in the month and buyers seemed to be more discriminating and selective.  The market transitioned from the seller’s market that we saw during the summer months to a more balanced and normal market.”

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 over 5% from November of last year.  Homes spent an average of 83 days on the market in November of 2017 compared to 87 days on the market in November of this year.

Inventory increased 3.6% in November of this year, with 1,532 active listings on the market compared to 1.478 listings on the market in November of 2017.  While active listings were up, every other measure of transactions decreased, indicating that the market is slowing heading into the holiday season.  Total pending contracts at the end of November were down 15.5% from last year.

*brightMLS has changed the calculation for days on market leading to a higher overall number compared to past reports.  The new calculation accumulates days when a listing is “active under contract” where the old system paused accumulation of days on market when a listing was in any contingent status.”

Local Real Estate Market Rebounds Slightly in October

The October real estate market posted increases in total sold dollar volume and median price, while units sold came in at the same amount as 2017. Total sold dollar volume increased from $128.8 million in October of 2017 to $138 million in October of 2018, representing a 7% year-over-year increase.  Median sold priced increased 3.5% going from $285,000 in October of last year and increasing to $295,000 in October of this year.  Units sold was on par with last year, with 419 properties sold in October of 2018.

“Heading into the end of the 2018 real estate market, it’s been a great year overall in the Fredericksburg area. October has seen a typical, seasonal slow-down in sales. Notably, the beginning of the month was slower while there were encouraging signs of strength in activity as November approached,” states FAAR Board of Director Chip Taylor.

“The market has been a little “mixed” in King George County and surrounding areas with pockets of homes that literally fly off the market while there are others that linger longer with days on market on the uptick,” continued Taylor. “Housing inventory remains quite tight and interest rates are stable but continue to edge up.”

Inventory remained static in October, with nearly the exact number of homes on the market now as there were in October of 2017.  Prospective buyers have 1,654 homes to choose from right now, with 733 new listings coming onto the market.  That represents 2.5% more new listings in October of this year versus October of last year.  October posted at or above 5% increases in new homes under contract, new contingent contracts, and new pending contracts in October, but all pending transactions were down almost 10% from October of last year.

Please note that this report does not contain any data on days on market. Those statistics are unavailable at press time due to the transition of local real estate data from the old MRIS platform to the new brightMLS platform.   

FAAR Adds Orange County to its Jurisdiction

The Fredericksburg Area Association of REALTORS® (FAAR) added Orange County to its jurisdiction. The County was previously assigned to Greater Piedmont REALTORS® (GPR). A majority of agents who live and/or work in Orange County are already members of FAAR and participate in the activities and services of the Association. The transfer made sense to GPR, who approached FAAR with the suggestion, and FAAR’s Board of Directors agreed. The National Association of REALTORS® assigns localities to associations, approved the move. FAAR welcomes Orange County to its footprint and to agents who may join FAAR. Agents who are already members of FAAR will appreciate the Association’s outreach to the locality. FAAR will establish relationships with the County government as it has with the jurisdictions already under its umbrella- the City of Fredericksburg, and the Counties of Spotsylvania, Stafford, King George and Caroline and the Colonial Beach area of Westmoreland.

September Posts Disappointing Total Volume Numbers

September posted disappointing year-over-year decreases in total sold dollar volume and units sold while posting a median price increase, indicating that the local real estate market may be slowing down heading into the cooler months.  Total sold dollar volume decreased over 11%, going from nearly $148.2 million in September of 2017 to $130.8 million in September of 2018.  This decrease was fueled by a nearly 18% drop in total units sold, which decreased from 500 units sold in September of last year to 411 units sold in September of this year.  Median price did climb 8.9% compared to the same time last year, increasing from $269,900 last September to $293,900 in September of this year.

Leading the loss in sales were the City of Fredericksburg and King George County, with 58% and 54% less units sold in September of 2018 than last September.  The loss in units sold represents a 52.7% decrease in total sales volume for the City and a nearly 51% decrease in total sales volume for King George County.  Stafford County was the only jurisdiction to post year-over-year gains in total sold volume and units sold, increasing 16.2% and 8.7%, respectively, compared to last year.

“The market has slowed a bit, which is typical for this time of year as buyers and sellers are focused on back-to-school activities.  Rising interest rates and lack of inventory have also affected the market, but from all signs next year will most likely be more balanced and continue on a slow, but steady, course,” states FAAR Board of Director Sandy Pearce.

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, increased 2% in September compared to the same time last year.  In September of 2018, homes spent an average of 49 days on the market compared to 50 days in September of 2018.  This is the first increase in average days on market since August of 2016.

Overall active listings were up 2% in September of 2018 compared to last year, with prospective buyers having 1,782 homes to choose from.  New listings were down 2.85% with 715 homes coming on the market this September compared to 736 last September.

July Posts Modest Gains in Local Real Estate Market

Rain continued to be the story of our region throughout July with severe weather potentially impacting the pace of home sales.  “July was a challenging month,” states FAAR Board Member Mark Geslock.  “The rains slowed open houses and some showings were postponed or cancelled due to flooding.  Listings were deleted because professional photos had to be rescheduled,” continued Geslock.  Despite the soggy conditions, the market managed to post modest gains in total sold dollar volume, median sold price, and units sold.

Total sold volume increased over 6%, increasing to $208.7 million in July of 2018 from $196.5 million in July of 2017.  Median price saw a nearly 3.4% year-over-year increase going from $301,000 in July of last year to $310,000 in July of this year.  Units sold increased from 622 in July of 2017 to 639 in July of 2018, representing a 2.7% jump in sales.

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, fell at a slower pace in July than in previous months.  The market has been experiencing year-over-year reductions in days on market exceeding 20%, but July came in at a more modest 8.7% decrease.  In July of 2017, homes spent an average of 46 days on the market compared to 42 days in July of 2018.

A bright spot in July’s statistics was the over 10% increase in new listings entering the market.  In July of 2017, 839 new homes came on the market but in July of 2018 there were nearly 100 more at 925, representing a 10.25% increase.  Active listings remained static in July with a negligible 0.12% increase by adding just two more homes to the active inventory compared to last year.  In July of 2018, buyers in the market had 1,728 homes to choose from.

May Sees Impact from Inventory Shortage

Fredericksburg, VA (June 14, 2018) The following analysis of the Fredericksburg, Virginia area housing market has been prepared by the Fredericksburg Area Association of REALTORS® based on analysis of brightMLS multiple listing data.

The inventory shortage that the Fredericksburg region is experiencing had an impact on the real estate market in the month of May.  Total sold volume remained static, posting a meager .78% increase from May of 2017.  May of 2018 saw a total sold dollar volume of $195.2 million while May of 2017 was less $2 million shy of that at $193.6.  Median price saw a 6% year-over-year increase going from $282,000 in May of 2017 to $299,450 in May of 2018.  A higher median price didn’t translate into a higher sold volume due to the nearly 3.5% drop in units sold.  In May of 2017, 630 properties sold in the market compared to just 608 in May of 2018.

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, fell significantly, going from 55 days in May of 2017 to just 40 for this May.  That represents a more than 27% decrease and demonstrates how quickly well-priced homes are moving off the market.  “The market is still seeing a real lack of inventory and the inventory that is available often has been on the market for a while,” stated 2018 FAAR President Kevin McGrath.

Inventory numbers continued to increase in May, consistent with seasonal trends.  Active listings posted a nearly 3% increase with 1,658 properties on the market in May of 2018 compared to 1,611 in May of 2017.  There was also a sizable increase in new listings with 1,128 new homes coming on the market in May compared to 977 in May of last year, representing a nearly 15.5% increase.  “If you are a seller with a home that will show well, it’s a great time to list as buyers are struggling to find homes that meet their needs,” continues McGrath.

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About the Fredericksburg Area Association of REALTORS®
Founded in 1957, the Fredericksburg Area Association of REALTORS® is the trade association for more than 1,600 Realtor® and affiliate members serving the areas noted above. Members also work in the surrounding counties of Westmoreland, Louisa, Orange and Prince William and in Northern Virginia. FAAR strongly supports the availability of affordable housing for all market segments and supports government policies designed to enhance homeownership opportunities.  For more information about FAAR, visit www.faarmembers.com or contact Kim McClellan, Public Policy Director at kmcclellan@faarmembers.com or 540-373-7711.

6 projects, 50 volunteers…how FAAR gives back!

The Fredericksburg Area Association of REALTORS® (FAAR) hosted six community service projects throughout the Fredericksburg area on Saturday, May 19, 2018.  FAAR volunteers prepared a home for exterior painting, painted the entire interior of another home, and cleaned up yards at four other locations.  The projects took place in the City of Fredericksburg and the counties of King George, Spotsylvania, and Stafford.

To support the work being done on Saturday, the Fredericksburg Realtors® Foundation contributed $1,500 to the effort to help purchase materials.  The Foundation is a 501©3 non-profit organization that serves as the charitable giving arm of FAAR.

FAAR partnered with the 516 Project, a local non-profit that performs home maintenance and home repair projects for those in need, to perform the work on the six projects.  The 516 Project undertook their spring workday on Saturday, complete with over 100 volunteers and 14 projects completed

April Posts Gains in Total Volume and Units Sold

April typically signals the start of the spring selling season with increasing sales and this year did not disappoint.  Total sold dollar volume increased over 8%, coming in at $164,683,573.  That increase was fueled by 517 units sold in the month of April, representing a more than 7% year-over-year increase.  Median price dipped over 3.5%, settling at $295,000 compared to $305,950 in April of 2017.  “The spring market continues to be strong, with both closed transactions and new transactions showing an increase year-to-year,” states FAAR Board Member Phillip Blake.  “The strong sellers’ market has buyers strengthening their offers with larger earnest money deposits and asking for less in seller concessions and contingencies.”

The drop in median price could be attributed to the sizable increase in the number of attached homes that sold in the month of April, including both duplexes and townhouses.  There was a 73% increase from the same time last year, with 78 selling in April of 2018 and just 45 last April. With an average sold price of $240,808, the increased sales volume coupled with the smaller price tag of attached homes could impact median price overall without moving the needle too much on the median price of single family homes.

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, fell over 16% with houses averaging 57 days on the market in April of 2018 compared to 68 days in April of 2017.

Inventory numbers were another bright spot in April, showing a boost that is typical of seasonal trends entering the spring selling season.  Active listings remained fairly static with 1,543 properties on the market in April of 2018 compared to 1,564 in April of 2017, representing a small year-over-year over decrease of 1.34%.  However, there was an almost 20% increase in new listings with 1,122 coming on the market in April compared to 938 in April of last year.  “Lenders are closing loans in approximately 30 days, keeping the market turning quickly,” continues Blake.  “This strong market should carry over into the summer and hopefully entice more sellers to get off the fence and list.”

FAAR Announces Endorsements for 2018 City of Fredericksburg Elections

The Fredericksburg Area Association of REALTORS® announces endorsements Fredericksburg City Council races on the ballot for the May 1st general election.

“Regardless of whether you live or work in the City of Fredericksburg, a vibrant downtown benefits us all throughout the region, serving as a hub of economic, cultural, and academic opportunities,” states FAAR Public Policy Committee Chair Robert Cooper.  “The Committee conducted interviews with all of the endorsed candidates and was impressed by their dedication to the job and depth of knowledge regarding issues of concern to the real estate industry.  In addition, the Committee appreciated their commitment to keep the City growing with a strong focus on economic development, expanded amenities for residents and visitors alike, and increased housing options for prospective buyers in all income brackets.  We look forward to working with the City Council to make Fredericksburg the best place it can be.”

FAAR has endorsed the following candidates running for office in the City of Fredericksburg:

Brad Ellis, Ward 1

Billy Withers, Ward 2

Tim Duffy, Ward 3

Need information on voting?  Click here to visit the City’s Voter Registrar website. 

March Real Estate Market Brings More Gains

Despite cold weather, ice, and snow, buyers and sellers got together in the month of March to produce year-over-year increases in total sold dollar volume, median sold price, and units sold, further contributing to the decline in days on market.  Total sold dollar volume increased over 7% to nearly $150 million fueled by a median price of $299,500, representing a nearly 7% increase over March of 2017.  Units sold remained fairly static at 474 compared to 466 last March, a 1.72% year-over-year increase.

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, fell nearly 12% with houses averaging 68 days on the market in March of 2018 compared to 77 days in March of 2017.  Days on market varies widely across the Fredericksburg region with a high of 109 days in King George County to a low of 56 in Stafford County for the month of March.

Active listings posted a more than 10% drop from March of 2017, with 1,310 active listings for March 2018 compared to 1,466 last year.  New listings also saw a small year-over-year decrease with 966 new properties coming available in March 2018 compared to 1,007 in 2017, representing a 4% decrease.  The market is currently running at a 2.6-month supply.  Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales.  A 5-month supply of homes is considered a healthy market, offering opportunities for a range of prospective buyers.  The market is currently seeing the lowest months of supply levels in over 10 years.  The supply peaked in 2008 with a 12-month supply of homes in June of 2008.

“The spring market has started strong,” states FAAR Board Member Drew Fristoe. “Buyers and sellers who have been waiting have decided to start the buying or selling process. The slightly higher interest rates are helping to get buyers to move. This spring looks to be a good one. ”

February Real Estate Market Remains Strong

February continued more of the same for the local real estate market with year-over-year increases in total sold dollar volume, median price, and units sold and a decrease in days on market.  Total sold dollar volume saw a more than 10% increase from February of 2017 breaking the $100 million mark to settle at $103,879,026.  Median sold price increased nearly 5%, going from $275,000 in February of 2017 to $287,750 in February of 2018.  Meanwhile, units sold increased almost 9%, increasing from 321 last February to 348 this February.

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, fell nearly 6% with houses averaging 79 days on the market in February of 2018 compared to 84 days in February of 2017.  Days on market has consistently fallen each month compared to the prior year since November of 2016.

Active listings posted a nearly 12% drop from February of 2017, with 1,176 active listings for February 2018 compared to 1,331 last year.  New listings also saw a sizable year-over-year decrease with 629 new properties coming available in February 2018 compared to 681 in 2017, representing a more than 7% decrease.

The commercial real estate market is also posting positive numbers.  FAAR Board Member and commercial agent Ben Keddie comments, “The commercial market has been very active of late.  The progress of deals through the sales cycle is still relatively slow but activity and productivity is very high with all signs pointing towards 2018 being a very busy and productive year. “

03 12 18 February Market Statistics

January Real Estate Market Kicks 2018 Off with a Bang

January kicked off a good start to the year in the local real estate market posting significant gains in total sold dollar volume, median sold price, and units sold.  Days on market, which has been continually declining compared to the prior year, decreased significantly again in January of 2018 compared to 2017.  January 2018 generated $104,052,726 in total sold dollar volume from 342 units sold throughout the Fredericksburg region.  This represents a nearly 23% year-over-year increase in sold dollar volume and a 14% increase in units sold.

Median sold price came in at $284,725 compared to $264,500 in January of 2017, posting a nearly 8% increase.  “2018 has started out with confidence built on last year’s strength. As I work with sellers who are preparing to list this spring, they are fueled with optimism and they have every right to be,” states FAAR Board of Director Clay Murray.  “We’re seeing homes entering the market, priced appropriately, going under contract in a few short days…in January!”

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, fell nearly 7% with houses averaging 69 days on the market in January of 2018 compared to 74 days in January of 2017.  Days on market has consistently fallen each month compared to the prior year since November of 2016.

Active listings posted a nearly 10% drop from January of 2017, with 1,180 active listings for January 2018 compared to 1,307 last year.  New listings saw a slight 2% increase with 617 new properties coming onto the market in January of 2018 compared to 604 in January of last year.

On the challenge of dealing with low inventory, Murray comments, “As far as our current lack of housing inventory, buyers are still eager for more options and are constantly searching and waiting for new listings. To successfully purchase a home, buyers must to do their homework and have a financing plan in place to confidently and quickly pursue a home that sparks their interest. 2018 is yet again proving that the Fredericksburg area real estate market is in great demand, no matter the season.”

02 12 18 January Market Statistics

Fredericksburg REALTORS® Foundation Awards $1,200 Grant

The Fredericksburg REALTORS® Foundation provided a $1,200 emergency housing assistance grant to Mental Health America of Fredericksburg (MHA).  The grant was used to repair the home of a client of the organization participating in their Senior Visitors Program.  The emergency repairs will allow the client to remain in their home.

The MHA client is currently receiving medical care and will soon be discharged to continue convalescing at home.  Without the repairs provided through the Foundation’s grant funding, the client would not have been allowed to return home.  The mission of the Foundation is to help individuals and families stay in their homes and achieve stable housing.

The Foundation provides grants to non-profits addressing local housing needs through a simple grant application.  More information can be found at www.faarmembers.com/foundation/

December Closes Out a Strong 2017 for Local Real Estate Market

The 2017 real estate market posted a significant increase in total sold dollar volume and modest increases in both median sold price and units sold.  The year closed out with a total sold dollar volume of $1,856,321,321 which represents an 11.5% increase over the year-end totals for 2016.  The market saw a more than 6% year-over-year increase in units sold, increasing from 5,686 in 2016 to 6,036 in 2017.  Median price appreciated by 4.6% increasing from $274,900 in 2016 to $287,556 in 2017.

Days on market, the time it takes from when a listing enters the market until it receives a ratified contract, fell nearly 17% with houses averaging a mere 59 days on the market in 2017 compared to 71 days in 2016.  The vast majority of sales were of 3- and 4-bedroom single family homes with that segment making up nearly 82% of the total units sold.

2018 FAAR President Kevin McGrath notes that buyers are getting pickier.  “When a home goes on the market, it needs to immediately present in the best light possible.  Gone are the days of iPhone pictures taken from the car,” states McGrath. “As the Internet continues to be the top source from which buyers start their home search and new technologies make that experience more immersive, the need for buyers to physically visit many homes will diminish, so a great Internet presence becomes even more vital.”

December, a traditionally slow month in real estate, ended the year with a chill that coincided with the weather.  The month saw $119,094,384 in total sold dollar volume, down nearly 6% from December of 2016.  Median price posted the only notable year-over-year increase in the market, settling at $279,000 in December, representing a 3.35% increase.   Units sold were down 4.5% from December of 2016, with 422 selling last year compared to 403 in December of 2017.  The decrease in units sold impacted both attached and detached homes.  Attached homes sold decreased by over 3% while detached homes sold decreased 4.7%.

McGrath found that his agents were busier than normal in December, but that the extreme lack of inventory hurt the market as some buyers weren’t finding what they were looking for in their price range.  “We are also seeing that after a number of years of strong steady growth in average sales prices, sellers are less willing to come off of the list price, and less willing to make major home inspection repairs,” noted McGrath.

Inventory constraints continued to plague the market, especially in the lower priced brackets.  The market experienced a significant 17% decrease in days on market for December of 2017 with houses taking an average of 63 days to sell, compared to 76 days in 2016.  Active listings were down in December nearly 4% from last year, but new listings coming onto the market increased over 14%.  There were also modest year-over-year increases in new homes sale pending that did not settle in December, indicating that January 2018 might get off to a good start.

McGrath states, “We are also seeing new trends in buyer “must haves” such as demanding high-speed Internet access as many more people start working from home.”  Realtors® expect inventory to remain low and prices to heat up heading into the spring selling season.  Competition will continue to be stiff in the lower priced market segments and new construction homes will continue to appeal to buyers with the means to build new who are not finding what they want in the existing housing stock.

November Posts Modest Gains in Local Real Estate Market

November posted modest gains for the local real estate market with slight increases in total sold dollar volume and median price and decreases in units sold and days on market.  Total sold dollar volume increased nearly 3%, coming at $125,014,068.  This increase was fueled by a 3.6% year-over-year increase in median sold price going from $274,950 in November of 2016 to $285,000 in November of this year.  There were 401 units sold in November of 2017 compared to 416 in November of last year, posting a 3.6% decrease.

Days on market, the amount of time it takes from when a listing enters the market until it has a ratified contract, decreased over 7%, going from 69 days in November of 2016 to 64 days in November of 2017.  Inventory remains low, but the market saw a modest increase in new listings, posting a 3.69% increase in November of 2017 compared to the same time last year.  There were 515 new listings in November of 2017 compared to 534 in November of 2016.  Active listings were down nearly 4%, coming in at 1,478.

FAAR Director Laura Fangman credits the strong market heading into the winter season with the increasing savviness of buyers and sellers.  Consumers are seeing the spring selling season start earlier and earlier each year and have begun to adjust to more year-round buying patterns.  Fangman states, “Instead of assuming that the market is dead in the winter and hot in the summer, my clients have been asking great questions to make informed choices about the best time to buy and sell.”

FAAR Installs 2018 Leadership Team

The Fredericksburg Area Association of REALTORS® (FAAR) hosted its annual Changing of the Guard Installation Dinner on December 7, 2017 at the Old Silk Mill in downtown Fredericksburg.  Incoming President Kevin McGrath and his leadership team were installed by Boomer Foster, president of general brokerage for Long & Foster Real Estate.

Several awards were also given out, including:

Affiliate of the Year:
The 2017 Affiliate of the Year award was presented to Stephanie Lyles of NSWC Federal Credit Union.

 Silver Circle Awards
This award is presented to members who have attained 25 years of continuous membership in FAAR.  Joining the Silver Circle in 2017:

Sandra Stevens, GRI
Coldwell Banker Dew Realty

Robin Marine, CRS, GRI
Coldwell Banker Elite

Jacquelin Fowler
Century 21 Battlefield Real Estate

Kelli Love-Smith
Coldwell Banker Elite

Kemper Weaver
Dockside Realty

Victoria M. Jones
Keller Williams Superior Realty

 Mitch Shumate
Lake Anna Realty

Janet Loraine Kimbrell
Long & Foster Real Estate

Hunter C. Scott
RE/MAX Allegiance

Good Neighbor Award
Anne Overington
Century 21 Redwood Realty

Randy Walther
Visionova Realty Consultants

Spirit Award
Chip Taylor
Century 21 Battlefield

The 2018 FAAR Leadership team is:
President                             Kevin McGrath, Long & Foster Real Estate—Fredericksburg
President-Elect                    Drew Fristoe, Coldwell Banker Elite
Vice President                     Arlene Mason, Coldwell Banker Carriage House
Secretary                             Mark Geslock, Century 21 Redwood
Treasurer                            Carrie Danko, 1st Choice Better Homes and Land, LC
Directors                             Chip Taylor, Century 21 Battlefield
Pam Kuper, Century 21 New Millennium
Sandy Pearce, Coldwell Banker Elite
Laura Fangman, Century 21 Redwood
Ben Keddie, Coldwell Banker Commercial
Clay Murray, Coldwell Banker Elite
Phillip Blake, MBH Settlement Group

Immediate Past President, Linda Fosdick with Dockside Realty, will join the 2018 Leadership Team on the Board of Directors.

October Healthy for Local Real Estate Market

The weather and the real estate market remained warm in October with gains in total sold dollar volume and a large reduction in days on market compared to October of 2016.  An increase in prices buoyed a slight reduction in units sold to keep the market hot well into the autumn.  October of 2017 posted a more than 5% increase in sold dollar volume, coming in at $128,774,826.  Median price was $285,000 for the month, a year-over-year increase of 7.5%.  Units sold fell slightly with a .48% decrease, going from 421 in October of 2016 down to 419 in October of 2017.

Days on market, the amount of time it takes from when a listing enters the market until it has a ratified contract, decreased over 20%, going from 72 days in October of 2016 to 57 days in October of 2017.  Inventory remains low, but there were nearly 17% more listings coming onto the market in October of 2017 than the same time last year.  There were 715 new listings in October of 2017 compared to 613 in October of 2016.  Active listings are down slightly with a 1.78% decrease, coming in at 1,652.  A bright spot in October was the number of new listings coming onto to the market, which is badly needed at this time.

Of the 419 units sold in October, more than half were financed using either a conventional loan or a VA loan.  Nearly 12% of sales were cash purchases, with another 22% FHA financing.  “The market is experiencing a slowdown in homes priced over $300,000 in line with normal seasonal fluctuations heading into the winter months,” commented FAAR Board of Director Pam Kuper.  “Homes priced under $300,000 are still flying off the shelves with our low levels of available inventory.”

Realtors® Mobilize to Protect Tax Benefits of Homeownership

The Fredericksburg Area Association of REALTORS® (FAAR) joins fellow Realtors® and affiliates from across the country in advocating for the protection of homeownership-related tax provisions during the current tax reform debate.  Proposals being discussed on Capitol Hill would dilute the Mortgage Interest Deduction and the deduction of state and local property taxes.

The loss of these tax benefits could lead to a real estate market adjustment where homeowners could see a loss of 10% or more in their property values.  In addition, taxes would be raised on middle class homeowners at a time when homeowners pay more than 83% of all taxes collected.  Pending tax reform plans threaten to wipe out the tax benefits of owning a home for 95% of American families.

Under the current tax law, homeowners are allowed a deduction for mortgage interest paid.  The deduction is generally allowed for interest paid on mortgage debt of up to $1 million, and is available for interest on mortgages for a principal residence and one additional residence.  The $1 million limitation represents the combined allowable debt on two residences. Mortgage interest on up to $100,000 of debt on home equity loans or lines of credit also qualifies for the deduction.

The United States has a long history of encouraging homeownership in the tax code and any reform must first do no harm to homeowners.  Realtors® are supportive of comprehensive tax reform that simplifies the tax code, but not at the expense of middle class families.

The National Association of Realtors®, representing over 1 million Realtors® nationwide, is working closely with the Trump Administration and the U.S. Congress to advocate for comprehensive tax reform that preserves the benefits of homeownership.

September Market Continues Trend of Consistent Growth in Local Real Estate

The real estate market continued its pattern of consistent growth through September posting increases in sold dollar volume and units sold, and a sizeable decrease in days on market compared to September of 2016.  Sold dollar volume was up 7.77% from last September, increasing to $148,185,156.  A 6% increase in units sold fueled the increase in volume, with 500 homes sold in September of 2017 compared to 471 in September of 2016.  Median price slipped over 3.5%, going from $280,000 in September of last year to $269,900 in September of this year.  “The beginning of September had its usual slow down with school starting,” remarked FAAR Board Member Drew Fristoe.  “The slowdown was prolonged a bit by the uncertainty caused by back-to-back hurricanes, but once that passed, the market picked right back up.”

Days on market, the amount of time it takes from when a listing enters the market until it has a ratified contract, decreased nearly 11%, going from 55 days in September of 2016 to just 49 days in September of 2017.  Inventory continues to be a challenge in our market with yet another month of fewer listings than the previous year.  September of 2016 saw 1,759 active listings on the market and September of 2017 had nearly 1% less at 1,744.  At the current time, there is a 3.55-month supply of available homes, which remains virtually unchanged from August of 2017.  A healthy market generally has about a 5-month supply of homes.

There was a sizeable increase in new listings coming onto the market, with 736 new listings in September of 2017 compared to 658 for the same time last year, representing a nearly 12% increase.  While pending sales overall were down nearly 10% from September of last year, there was a considerable increase in new pendings and new under contracts, which could be a result of good weather encouraging would-be buyers to look at current inventory.  Fristoe continued, “Homes priced under $300,000 and priced well do not last long.  Many homes have multiple offer situations.”

FAAR Congratulates 2017 Parade of Homes Winners

The Fredericksburg Area Association of REALTORS® (FAAR) would like to congratulate 2017 Parade of Homes Realtors® Choice Award winners.  Over 20 homes competed for the distinction of being “the best home for the value” as decided by a group of more than 20 Realtor® judges in the categories of active adult and single-family home.

The Realtors® Choice Award for Active Adult went to Foundation Homes, The Ashley in River Crossing.  The Ashley has a low HOA fee, beautiful hardwood floors throughout the home, a gourmet kitchen, a great finished upper level, and many lovely upgrades for a price that delivered incredible value.

The Realtors® Choice Award for Single Family went to CalAtlantic Homes, The Washington at the Estates at Kingswood.  The Washington truly checked every box that today’s buyer wants.  The home has a gourmet kitchen with an open floor plan perfect for entertaining, flexible spaces that allow for maximum creativity and accommodation for a family’s needs, walk-in closets in every bedroom, a 3-car garage, a great Trex deck, and a beautifully finished basement.  The clincher for this house was the price and value you receive from the builder.  The price point for all of these features and incentives that would make any client drool really set this house apart.

FAAR added a new element this year with the “FAAR Fan Favorite”, an online vote from all of those Realtors® who got out to view homes on the Parade last week.  The winner of the Fan Favorite was Halsey Homes, the Craftsman at The Oaks at Rocky Run.

All of the homes on the Parade will be open this coming weekend, October 7-8 from 10:00am to 4:00pm.  For more information, visit www.fredparade.com.

POH Award Winners

August Posts a Strong End to the Summer Selling Season

August rounded out the summer market with a strong showing, posting gains in volume of sales, median sold price, and units sold and seeing yet another year-over-year decrease in days on market.  Total sold dollar volume was up over 6% over August of last year coming in at $177,669,921.  Median price was $295,000 for August of 2017, increasing 5.36% over the $280,000 mark in August of 2016.  There were 7 more units sold in August of this year than compared to 2016, coming in at 567 versus 560, representing a modest 1.25% increase.  “The market continued strong through the summer and didn’t experience the typical slump that comes with vacations and back to school activities,” commented FAAR Board of Director Sandy Pearce.

Days on market, the amount of time it takes from when a listing enters the market until it has a ratified contract, decreased nearly 25%, going from 65 days in August of 2016 to just 49 days in August of 2017.  Inventory continues to be a challenge in our market with yet another month of fewer listings than the previous year.  August of 2016 saw 1,763 active listings on the market and August of 2017 had 2.5% less at 1,719.  At the current time, there is a 3.54-month supply of available homes, which remains virtually unchanged from July of 2017.  A healthy market generally has about a 5-month supply of homes.

A bright spot on the inventory side was the significant increase in new listings coming on to the market.  August of 2017 saw a 16.14% increase in new listings, adding 878 new homes compared to 756 in August of 2016.  “Inventory remains low but there seems to be a steady stream of listings coming on the market which is good news for buyers who aren’t facing a time crunch,” continued Pearce.  “Homes that are priced well and in move-in condition are going under contract very quickly. With interest rates remaining low, it could be an active fall for both buyers and sellers.”

9-12-17 August Market Statistics

FAAR Contributes to Hurricane Harvey Relief Efforts

On Tuesday, September 5, 2017, the FAAR Board of Directors approved a $1,500 contribution to the Realtors® Relief Fund to assist storm victims impacted by Hurricane Harvey. The Fund was established to provide needy victims of disasters and their families assistance with housing-related needs arising out of disasters.  The funds can be used for affected relief and rescue workers as well.  The Foundation may elect to provide assistance primarily to victims who are members of the National Association of Realtors®.

If you are interested in donating to the Realtors® Relief Fund, you may click here to access the secure online portal.  There are many local and national charities and businesses collecting Hurricane Harvey relief funds, Charity Navigator is a good place to research charities and learn more about their services.

 

Hot Local Housing Market Continues into July

Fredericksburg, VA (August 11, 2017) The following analysis of the Fredericksburg, Virginia area housing market has been prepared by the Fredericksburg Area Association of REALTORS® based data provided by Bright MLS (formerly MRIS). 

The temperature wasn’t the only thing heating up during the dog days of summer, with the local real estate market posting another month of increasing sales, median price, and units sold coupled with decreasing days on market.  Total sold dollar volume was up 14.15% compared to July of 2016 coming in at $196,474,044.  This increase was fueled by a more than 9% increase in median sold price and a nearly 8% increase in units sold compared to the same time last year.  In July of 2016, the market saw a median sales price of $275,000.  That price increased to $301,000 in July of 2017.  Units sold came in at 578 in July of 2016 compared to 622 in July of 2017.  “This is an interesting time in real estate,” stated FAAR 2017 President-Elect Kevin McGrath.  “Offices are busier than they have been in quite a while.  A lot of new agents are finding themselves getting busier much more quickly than new agents in the past.”

Days on market, the amount of time it takes from when a listing enters the market until it has a ratified contract, decreased over 13%, going from 53 days in July of 2016 to just 46 days in July of 2017.  “If a property is priced right, within 20 minutes of it going active in the Multiple Listing Service is seems like agents are setting up showings,” commented McGrath.

Inventory continues to be a challenge in our market with yet another month of fewer listings than the previous year.  July of 2016 saw 1,815 active listings on the market and July of 2017 had 4.9% less at 1,726.  At the current time, there is a 3.56-month supply of available homes, a healthy market generally has about a 5-month supply of homes.

While sellers are putting their homes on the market more than last year, it isn’t enough to keep pace with demand.  July saw a 3.45% increase in new listings with 839 added to the market in 2017 compared to 811 in July of 2016.  “Rising prices are due to a lack of inventory,” continued McGrath.  “We need sellers to list their homes in greater numbers than we’re seeing to satisfy the increasing demand in the market.”

FAAR to Host Candidate Interviews for Local Elections

On Tuesday, August 22, 2017, the FAAR Public Policy Committee will interview candidates running for local office including seats in the General Assembly and local Boards of Supervisors.  Each candidate is sent a candidate survey to gather information on where the individual stands on issues such as transportation, growth policies, and taxes.  While the Committee members’ main goal is to get to know the candidate and whether they will be supportive of the real estate industry, the interview also serves as a great opportunity for the candidates to learn more about FAAR and the concerns of our members.

The interviews are open to the entire FAAR membership, but only those members who serve on the Public Policy Committee are permitted to ask questions of the candidates.  The Committee will go into executive session after the interviews have concluded and decide who, if anyone, to endorse in each seat that had a candidate the group interviewed.  This process is a great way to establish a relationship with new elected officials from the beginning.  The candidate interview schedule is published below, please RSVP to Kim McClellan at kmcclellan@faarmembers.com if you would like to attend the interviews.

Interview Schedule

Morning Session

8am:  Cindy Shelton (Stafford County Board of Supervisors, Aquia District)

8:30am:  Nelson Gentry (Spotsylvania County Board of Supervisors, Berkeley District)

9:00am:  Open

9:30am:  Chris Yakabouski (Spotsylvania County Board of Supervisors, Battlefield District)

10am:  Kevin Marshall (Spotsylvania County Board of Supervisors, Berkeley District)

10:30am:  Cathy Binder (King George County Board of Supervisors, Shiloh District)

11:00am:  Greg Cebula (Spotsylvania County Board of Supervisors, Berkeley District)

 

Afternoon Session

3:30pm:  Greg Bundrick (Stafford County Board of Supervisors, Falmouth District)

4:00pm:  Mark Dudenhefer (Stafford County Board of Supervisors, Garrisonville District)

4:30pm:  Yolanda Rousell (Stafford County Board of Supervisors, Aquia District)

5:30pm:  Meg Bohmke (Stafford County Board of Supervisors, Falmouth District)

6:00pm:  Laura Sellers (Stafford County Board of Supervisors, Garrisonville District)

6:30pm:  Joshua Cole (House of Delegates, District 28)

7pm:  Bob Thomas (House of Delegates, District 28)

Realtors® Advocate for New Laws to Protect Private Property Rights

Virginia Realtors® fought for several news laws during the 2017 General Assembly session to protect private property rights that will go into effect on July 1, 2017. Each year, the Realtor® organization advocates for legislation at the General Assembly to support the real estate industry, protect private property rights, and encourage homeownership.

In the 2017 General Assembly session, Realtors® helped enact laws that impact property management. New laws provide for a smoother transition for an existing tenant in the event of a property foreclosure by allowing the property management agreement to continue in place on a month-to-month basis and clarifying to whom the tenant pays their monthly rent. In addition, a new law also allows for an easier process for a property manager to transfer a security deposit to the owner and codifies in statute the common practice of a lease continuing month-to-month after a foreclosure.

In addition, Realtors® advocated for the passage of a new law that prohibits a homeowners’ association from restricting for lease and for signs unless that provision is included in the association’s covenants and restrictions. The new law also prevents an association from requiring a formal power of attorney from a real estate licensee to represent their client before the association. The bill also imposes a fine of up to $1,000 for associations failing to provide the association disclosure packet within the 14-day requirement stipulated by law.

Finally, Virginia Realtors® fought for a law that changes the name of the “red-flag” disclosure statement to the “buyer to beware” statement. This is more representative of what the statement actually is in practice, since the onus is on the buyer to investigate whether the issues raised in the buyer to beware statement are actually applicable to the property in question.
The Fredericksburg Area Association of Realtors® is already working on assembling a packet of issues for consideration in next year’s General Assembly session that will support the real industry and protect private property rights.

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