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HOUSING: Area sales go up as prices go down

Date published: 5/15/2008

Median housing prices in the Fredericksburg area fell last month to their lowest levels since October 2004, but more homes sold than in previous months.

The median price of the 310 homes that sold in the Fredericksburg area in April was $256,125, according to Metropolitan Regional Information Systems Inc.

That’s a 14.6 percent price drop from April 2007 and is 26.8 percent below the area’s price peaks of June 2006.

Median sales prices in Stafford County slipped below $300,000 last month for the first time since November 2004. Spotsylvania County’s median sales price of $237,000 was the lowest since May 2004.

Sales held up better than prices last month. The 310 homes that sold in April represents the best tally since August. It was 9.6 percent below the number of homes that sold in April 2007, less of a decline than occurred with price.

The data—sliding prices coupled with slightly rising sales—suggest that sellers are beginning to lower their prices to attract buyers.

Melanie Thompson, co-owner of Century 21 AdVenture in Spotsylvania, agrees with that analysis. She said slight downward adjustments in price are leading to increased interest among buyers. She thinks prices are more realistic and the market is healthier. She said other parts of Virginia are experiencing similar trends.

Still, despite the increased sales volumes, the housing market is still struggling compared with previous Aprils this decade. It’s being weighed down by an imbalance of supply and demand caused in part by tight credit and rising foreclosures.

The 310 homes that sold last month represented the lowest tally for the month of April since 2000. Sales have typically risen in the spring and peaked during the summer.

Homes that sold last month stayed on the market for an average 142 days—the fourth-highest monthly tally for the Fredericksburg area this decade. Homes sold for 89.2 percent of list price on average, one of the lower figures this decade.

Thompson doesn’t expect a “normal” housing market to occur in the Fredericksburg area until 2009.

Bill Freehling: 540/374-5405 bfreehling@freelancestar.com

Median Sales Prices* April ’08March ’08April ’07 Fredericksburg city$277,500$270,000$275,000 Stafford $294,950$303,500$349,999 Spotsylvania $237,000$255,000$295,000 Caroline $182,500$210,000$221,975 King George $265,000$349,950$288,000 Westmoreland $189,500$196,097$210,000 Orange $240,500$214,409$259,000 Fauquier $300,000$275,000$347,450 Culpeper $247,950$231,500$317,500 Fredericksburg area** $256,125$265,000$299,900 * Median is the middle price. For example, if 11 homes were sold, the median would be the price of the 6th-most-expensive home (the middle one). We use this figure because extremely expensive or inexpensive homes can skew averages. The average sales price tends to be higher than the median. For example, the Fredericksburg-area average sales price for April was $283,636. ** This area-wide median home sales price includes Fredericksburg and Stafford, Spotsylvania, Caroline and King George counties, and part of Westmoreland County. —Metropolitan Regional Information Systems Inc. To see Fredericksburg-area housing data and charts back to 2000, go to Bill Freehling’s blog: Fredericks burg.com/bizbrowser. There’s a link to an Excel file in the blog’s top post.

Date published: 5/15/2008