What is the Real Estate Market Like in Fredericksburg, Virginia?

What is the Real Estate Market Like in Fredericksburg, Virginia?

What is the Real Estate Market Like in Fredericksburg, Virginia?

Fredericksburg has officially turned into another red-hot housing market. In fact, Redfinrecently declared the locale very competitive, due to its lofty Compete Score of 78 out of 100. On the ground, sellers are receiving multiple offers plus waived contingencies, making this housing market a sellers' playfield. There’s no doubt about it - sellers are definitely getting the upper hand here. If you’re looking to buy, sell, or manage in a market like this, you’ll need to study some crucial information about the current real estate scene in Fredericksburg. Luckily, we’ve gathered all the basics to help you get started today:

Fredericksburg, VA Key Housing Market Stats

  • The price of homes increased by 12.2% in June 2022.
  • Homes are being sold at a median price of $438K.
  • Homes are usually on the market for only about 14 days. Last year around the same time, homes sat for approximately 7 more days before being sold. Today, the most competitive homes sell in around 4 days.
  • In June 2022, over 200 homes were sold. The number of homes sold last year in the same month was 341.
  • On average, homes sell for 2% higher than the list price, and the most competitive homes on the market see 4% higher bids than the list price.
  • 53.6% of homes are sold at a price higher than the list price.

Living Conditions in Fredericksburg

Fredericksburg proper is a fantastic place for owners and renters alike. There are plenty of small restaurants, stores, and retailers to explore, no matter your tastes or preferences. Plus, many residents don’t even need a car to get around. After all, the city is both walkable and beautiful Fredericksburg, Virginia, isn't short on history, either. The city was established in the early 1700s, and some of its most picturesque, historic streets are still named for British royals. Moreover, Fredericksburg's popular entertainment options, including kayak rides and horse-drawn carriages, keep residents highly entertained. It's also a college town, so you know that food, drink, and fun are never far. While living or investing in Fredericksburg does come with an array of advantages, keep in mind that inventory is extremely low. While sellers may find quick success, buyers will likely face an uphill battle. Here are some additional key stats you should consider if planning to invest in Fredericksburg:

  • A rental market study shows that 57% of the Fredericksburg population are renters, however there’s only 2.4% inventory available to rent.
  • In April 2022, the average rent of a 970 sq. ft. apartment in Fredericksburg was $1,708.
  • Altoona, Alum Springs, and Arcade Court are the most affordableneighborhoods in Fredericksburg. These areas boast an average monthly rent cost of $1,504.
  • Tidewater Village, Timberlake, and Whittaker Estates are the most expensive neighborhoods in Fredericksburg, VA. Average rents in these areas total around $1,923 per month.
  • Battlefield Station, Breezewood, and Celebrate Virginia are among the most popular neighborhoods in the Fredericksburg area. Average monthly rents are between $1,587 and $1,887 in these places.

Economy & Workforce

US News gave Fredericksburg city an overall score of 59 for their economy. This means that while there is room for improvement, the local economy is relatively healthy. Key indicators include:

  • A 7.1% unemployment rate. This figure is higher than the national average, but the rate is gradually improving as the COVID-19 pandemic slows.
  • An average annual household income of $62,339. This is above the national average of $58,759.
  • A poverty rate of 13.9%. This figure rivals the national average, which is 13.6%.

It’s also important to note that Greater Fredericksburg is home to a highly educated workforce. The area has diverse economic clusters and also offers lower costs of doing business. In 2022, the job market in Fredericksburg has grown by 1.9% year-over-year. What’s more, it's expected that Fredericksburg will achieve a staggering 37.8% growth rate in the next 10 years. Whether you plan to sell an investment home or go up against local buyers, you’ll likely want to know more about average income. The U.S. average annual income is roughly $28,555 ($53,482 for median household), and Fredericksburg, VA, is not too far behind:

  • An average resident of Fredericksburg earns $28,453 per year.
  • The yearly median household income of a Fredericksburg resident is $49,454.

Climate Condition Of Fredericksburg

The climate of any given location can significantly impact the housing market. After all, buyers have an increasing focus on various environmental risks and natural hazards when it comes to making a housing decision. Besides, floods, fire, heat risks, and many other environmental conditions can damage houses. A reportfrom Redfin discusses climate;s overall impact on the housing market of Fredericksburg:

  • About 1,332 (16%) homes face risk due to the possibility of flooding.
  • Flood risk is higher than the national average.
  • This year, the average resident encountered $204 in property damages due to flooding.
  • Some homes may require flood insurance. Premium flood insurance usually costs between $225 and $2,510 per month.

Another study shows the potential storm and heat risks in Fredericksburg:

  • A storm risk score of 77 out of 100. This is classified as very high.
  • A heat risk score of 58 out of 100. This is classified as high.

On the other hand, drought and fire risks are fairly low in Fredericksburg:

  • A drought risk score 21 out of 100 . This is classified as low.
  • A fire risk score of 18 out of 100. This is also classified as low.

Is Fredericksburg Becoming A Buyer’s Market?

Records from the past few months indicate the Fredericksburg housing market may begin to normalize. While Fredericksburg does remain a seller's market, some key housing statistics show signs of cooling. Rising interest rates, extremely high home prices, inflation pressure, and economic uncertainty may all play a part in the recent drops in units sold. About 208 homes were sold in June 2022, according to Redfin. Last year, though, this number was significantly higher at 341. Fredericksburg also had a better supply of available homes in the last few months. About 838 homes were listed on the market at the end of May. Last year, that number was only 573.

Fredericksburg Housing Market: Final Thoughts

While Fredericksburg is still considered a seller’s market, the past few months of stats may indicate some coming changes. The good news? That means Fredericksburg may be the ideal market, regardless of your goals. After all, if you’re planning to sell a Fredericksburg home, you can take advantage of high prices and low inventory. On the other hand, if you’re looking to buy, the changing tides may indicate ample opportunity. And, if you’re looking to manage, Evernest has a team of local, boots-on-the-ground professionals who will provide best-in-class care. Essentially, whatever your real estate needs, take a close look at Fredericksburg, Virginia.

Get Started Buying Homes With Evernest

Whether you’re purchasing one Fredericksburg home or one hundred, you don’t have to go it alone. If you’re ready to buy your first (or next) investment property, here are 3 steps to get started today:

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