May Proves a Good Month for the Local Real Estate Market

Fredericksburg, VA – (RealEstateRama) — The following analysis of the Fredericksburg, Virginia area housing market has been prepared by the Fredericksburg Area Association of REALTORS® based on analysis of MRIS multiple listing data provided through RealEstate Business Intelligence, LLC (RBI).

The Fredericksburg area real estate market continued to deliver good news for 2016, posting a very strong May with a significant increase in sold dollar volume, a modest increase in median price, and a sizeable decrease in days on market when compared to May of 2015. Sold dollar volume increased 15.09%, surpassing May of 2015 by over $20 million in total sales volume with a figure of $153,023,182 for May of 2016. Median sold price increased 3.73% from last year, going from $268,000 to $278,000. The good news doesn’t stop there as there was also a sizeable decrease in days on market. May of 2015 saw an average of 75 days on the market while this May posts a 9.33% decrease to an average of 68 days on market.

A steadily shrinking inventory continues to plague the market, with May of 2016 posting a nearly 15% decrease in current active listings over last May. In May of 2015, there were 2,038 active listings compared to 1,738 in May of 2016. There was an extremely slight increase, just 0.90%, in new listings, but not enough to make a true difference in the market. The greatest shortage in demand is in the lower priced market of under $400,000. Those homes in the higher price ranges aren’t experiencing the same demand and often sit for longer on the market.

FAAR Board of Director Linda Fosdick comments, “Our Lake Anna market is predominantly second home buyers, who are now feeling confident enough to pursue vacation home purchases. Because our inventory is still unusually high at the lake, prices are holding at their lowest in many years, representing favorable opportunities for buyers in all price ranges. The lake area experienced the strongest spring sales activity in years and the outlook is very promising.”

About the Fredericksburg Area Association of REALTORS®
Founded in 1957, the Fredericksburg Area Association of REALTORS® is the trade association for more than 1,500 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, Government Affairs Director at kmcclellan (at) faarmembers (dot) com or540-373-7711.

Contact: Kim McClellan
540-373-7711
kmcclellan (at) faarmembers (dot) com

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