Prices keep going up while demand for housing cools in Fredericksburg area
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. REALTOR® means member of the National Association of REALTORS®.
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.