Fredericksburg, VA – (January 14, 2025) – 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.
“The Fredericksburg area real estate market in 2024 was marked by constrained inventory, making it a challenging year for buyers and sellers alike,” comments 2025 FAAR President Lauren Tate. “Buyers faced intense competition, rising interest rates, and affordability concerns, which often priced first-time buyers out of the market. Many had to compete with cash offers or waive contingencies like inspections and appraisals just to remain competitive. Additionally, buyers struggled with the uncertainty of fluctuating interest rates, which affected their purchasing power and often caused hesitation or last-minute changes in plans.” Tate also points out that sellers were not immune from these concerns, as even those with significant equity in their homes hesitated to list their properties. Fears of not finding a suitable replacement, the rising cost of “trading up”, and much higher interest rates than on their current mortgage kept many would-be sellers on the sidelines.
These factors were the backdrop to a housing market that still saw increasing prices despite the headwinds dampening demand. The year closed with a total sold dollar volume of $2.8 billion which represents a nearly 7% increase over the year-end $2.6 billion total for 2023. Median price ticked up nearly 4% year-over-year from the end of 2023 coming in at $456,875 for 2024 versus $439,900 the year before.
Every jurisdiction within the FAAR footprint, except the City of Fredericksburg, saw a significant increase in annual median price with Caroline County and Colonial Beach taking the lead with 8% increases from 2023. These jurisdictions also happen to be the most affordable in the region with a 2024 median price of $366,900 and $325,000 respectively. Stafford and King George counties took the lead on highest regional price at $520,000 and $465,000 respectively. Spotsylvania and Orange counties were not far behind with median prices of $450,000 and $414,900 respectively. The City of Fredericksburg settled at $447,450 with a scant 1% decline in price from the previous year.
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 by just one day, going from 27 days on average in 2023 to 28 days in 2024. However, the largest portion of homes still sold very quickly, with 2,587 homes flying off the market in 10 days or less.
Nearly 41% of homebuyers utilized a conventional mortgage for financing with another 27% qualifying for VA loans. Cash buyers made up another 12% of the market. The average mortgage rate for 2024 was about 6.7%.
December closed the year with small declines in year-over-year total sold volume and units sold. Prices saw an increase of 5% going from $425,000 in 2023 to $445,000 in December of 2024. Spotsylvania and Caroline counties saw significant price and volume increases in December, while King George and Stafford counties had notable declines. Caroline led the pack in December of 2024 with a 50% increase in total sales volume fueled by a nearly 17% increase in median price and a 15% increase in units sold. Caroline closed out the year with a monthly median price of $394,900, the highest monthly median price on record for the County. Stafford County saw a more than 13% decline in total sales volume fueled by a nearly flat year-over-year median price of $495,000 and a nearly 10% decline in units sold.
December of 2024 did see a bright spot in inventory supply as active listings on the market jumped by more than 20% from the end of 2023. December of 2023 saw just 660 homes on the market, but December of 2024 saw an inventory recovery of nearly 800 homes to choose from, though still well below the 1,000 market that was typical before 2019.
Realtors® are optimistic about the pent-up demand in would-be buyers in 2025 and the slight balancing of the market as more inventory makes its way on the market. Retaining a Realtor® to guide buyers and sellers through the tricky homebuying process can help alleviate a lot of stress as their local neighborhood expertise provides a solid foundation.