Home prices rise as supply tightens
by CHRIS MULDROW / Fredericksburg Today
Home prices will continue to rise in the region as the supply of homes for sale tightens, according to the Fredericksburg Area Association of REALTORS.
FAAR’s market report says sales have increased 10% over last year, going from $138,267,056 in April of 2016 to $152,095,477 in April of 2017. But April saw a 6.79% decrease in active listings and a 4.29% decrease in new listings on the market.
Median prices increased nearly 14%, rising from $268,500 in April of 2016 to $305,950 in April of 2017.
Fewer units were sold, with 484 sold in April of last year compared to 482 this year. FAAR’s analysis says buyers might be having difficulty finding what they want because of the constrained supply.
Arlene Mason, a member of FAAR’s board, said the market was moving well in April.
“As inventory remained low, sellers saw their homes go under contract very quickly and often with multiple offers,” Mason said. “In fact, I saw homes that did not sell last fall actually sell very swiftly when re-listed this spring. Successful buyers benefited from reasonably stable and favorable interest rates.”
The brisk market also led to a 20% reduction in days on market. In April of 2016, sellers were waiting an average of 85 days for their homes to sell, but the average plummeted to just 68 days in April of this year.