November sees same trends hold in local real estate market

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.

As 2023 draws to a close, the Fredericksburg regional housing market is experiencing much of the same as the last few months.  Prices continue to rise against a backdrop of falling demand, stubbornly low housing supply, and volatile interest rates.  Total sold dollar volume fell nearly 14% in November, coming in at approximately $167.4 million in November 2023 compared to $193.5 million last year.  Units sold were down nearly 13% year-over-year, with 412 homes transacted last November compared to 359 this year.  Despite this, prices still rose nearly 4%, coming in at $439,900 compared to $424,715 last November.

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, was up about 7% with homes averaging 29 days on the market this November compared to 27 days last year.

Inventory continues to be a challenge with the number of active listings at the end of November at 815 compared to 974 last year.  New listings were also down this month with just 384 new listings coming on the market compared to 537 last year, a nearly 30% drop.  New pendings which indicates the pace of future sales remained almost static with 2 more pending sales this November compared to last year.  November of 2022 saw 400 pending sales at the close of the month compared to 402 pending sales this November, a less than 1% increase.

“For the month of November, we saw falling interest rates and an increase in buyer activity,” states FAAR Board of Director Abby Fitzsimmons.  “Buyers are able to negotiate a bit, especially if sellers are in a situation where they need to sell.  On the listing side of things, days on market have increased but home values are holding steady due to a continuous lack of inventory.  Thanksgiving begins the typical “holiday season” where the real estate market slows down.  If interest rates continue on their downward slope, we will see what December will bring.”