As home prices rise in the Fredericksburg region, demand decreases

by | Apr 16, 2024 | ALLFFP, Real Estate

Median housing prices continue to rise in the Fredericksburg area. 

According to the Fredericksburg Area Association of Realtors, the median price of a home in the area is $449,949 compared to $420,000 at the same time last year, an 8% increase. 

The total number of homes sold, however, dropped from 452 in March 2023 to 417 last month. The volume sold totaled $202.3 million, down just 1% from last year. Homes stay on the market for an average of 30 days. New listings are down 8%, but new “pending” listings are up 11%.  

The area includes Fredericksburg, Colonial Beach and Caroline, King George, Orange, Spotsylvania and Stafford counties. 

FAAR attributes the rise in median cost mostly to Spotsylvania and Stafford. Spotsylvania’s median price of $449,000 is its third highest ever. Stafford set a record with a median price of $522,500, up more than 10% from last March. That also led to a 30% downturn in units sold. 

“We’re seeing a pain crunch for first-time buyers as inventory in their price point has always been a challenge, and it’s very pronounced right now,” Nick Bohn, a mortgage lender and member of the FAAR Board of Directors, said in a news release.

“On the bright side, the Virginia Housing program’s increased flexibility on income limits has really helped expand those opportunities for first-time buyers. We’re seeing an increase in inquiries for mortgage loans, and we are anticipating high demand for the limited inventory that’s on the market.” 

The median price for a home in King George County was $454,999 in March, down 8%. In Fredericksburg, it was $440,000, up 7%. Orange is up 9% to $412,495. Caroline saw a 2% decrease with a median price of $342,500. Colonial Beach is up 24% to $384,900. 

Spotsylvania set the pace in units sold (142), followed by Stafford (122), Orange (60), Caroline (38), King George (33), Fredericksburg (22) and Colonial Beach (15). 

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