The median home sale price in the city of Fredericksburg rose by $70,000 in October from the previous year. The region that includes Fredericksburg saw buyers looking for homes but finding fewer to choose from compared to a year ago, not unlike other areas that are commuting distance to major employment centers in the region.
The Fredericksburg region Market Minute report includes Fredericksburg City and Spotsylvania, Stafford, Culpeper and Caroline counties.
For the area, the average median sale price rose 9 percent to $276,250, with inventory falling across the region. The high demand could stem in part from buyers looking for more affordable housing outside of more expensive locations that are closer to major employment hubs.
“That’s an example of demand outpacing supply pretty dramatically,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. “The Fredericksburg region is a very strong market right now. It’s certainly commuting distance to Washington, D.C., Richmond and Quantico.”
Foster said the outlook through 2018 contains more of the same, with strong economic conditions expected to attract more buyers.
A buyer in this market needs to enlist the help of a reputable agent who will be proactive in seeking out homes for sale in desired locations, Foster said. That could mean the agent is knocking on doors or writing letters to potential home sellers. Chances of helping a client secure a home also increase when the buyer has preliminary mortgage approval from a lender.
Foster cautioned that affordability could become more of a challenge for buyers in the coming year, when interest rates are expected to edge higher.
“If interest rates move up and prices continue to appreciate, as we believe they will, then the house you want today could be unaffordable for you in the future,” Foster said. “So if you want to get in, get in now. Don’t wait.”
The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.
Information included in this report is based on data supplied by Metropolitan Regional Information System and its member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS or Long & Foster Real Estate.