Real Estate
Are We Still in a Sellers Market?
Check out how fast Fredericksburg properties are going under contract!
Although the market is super hot right now, many homeowners are wondering how we will know if the market is shifting from a seller's market to a buyer's market. A higher Contract Ratio signifies a relative increase in contract activity compared to supply, and indicates the market is moving in the seller's favor. A lower Contract Ratio signifies a relative decrease in contract activity compared to supply, and indicates the market is moving in the buyer's favor. In this article, we breakdown the trends in the Contract Ratio for detached homes, townhouses, and condos to see what's happening in the Fredericksburg real estate market.
FREDERICKSBURG DETACHED ACTIVITY:
In Fredericksburg City, VA, the median sold price for detached properties for June was $350,745, representing a decrease of 3.4% compared to last month and a decrease of 10.6% from June 2019. The average days on market for units sold in June was 28 days, 34% below the 5-year June average of 42 days. There was a 4.2% month over month increase in new contract activity with 25 New Pendings; a 2.6% MoM decrease in All Pendings (new contracts + contracts carried over from May) to 37; and a 34.2% increase in supply to 51 active units. This activity resulted in a Contract Ratio of 0.73 pendings per active listing, down from 1.00 in May and an increase from 0.39 in June2019. The Contract Ratio is 21% higher than the 5-year June average of 0.60. This indicates the market beggining to favor buyers.
Table 1: Contract Ratio for Detached Homes in Fredericksburg
| Month | CLOSED | SOLD PRICE (MED) | DOM (AVE) | CONTRACT RATIO |
| JUN-20 | 51 | $350,745 | 28 | 0.73 |
| MAY-20 | 38 | $363,000 | 62 | 1.00 |
| APR-20 | 44 | $372,450 | 35 | 0.80 |
| MAR-20 | 52 | $409,950 | 51 | 0.62 |
| FEB-20 | 44 | $419,000 | 50 | 0.61 |
| JAN-20 | 44 | $298,000 | 67 | 0.55 |
| DEC-19 | 54 | $389,900 | 47 | 0.33 |
| NOV-19 | 69 | $368,500 | 42 | 0.36 |
| OCT-19 | 75 | $342,125 | 33 | 0.32 |
| SEP-19 | 67 | $1,850,500 | 41 | 0.45 |
| AUG-19 | 71 | $418,575 | 72 | 0.36 |
| JUL-19 | 66 | $394,900 | 39 | 0.36 |
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FREDERICKSBURG TOWNHOUSE ACTIVITY:
In Fredericksburg City, VA, the median sold price for townhouse properties for June was $320,000, representing an increase of 7.6% compared to last month and a decrease of 14.7% from June 2019. The average days on market for units sold in June was 46 days, 29% below the 5-year June average of 64 days. There was a 12.5% month over month increase in new contract activity with 9 New Pendings; a 21.4% MoM decrease in All Pendings (new contracts + contracts carried over from May) to 11; and a 27.8% decrease in supply to 13 active units. This activity resulted in a Contract Ratio of 0.85 pendings per active listing, up from 0.78 in May and an increase from 0.43 in June 2019. The Contract Ratio is 47% higher than the 5-year June average of 0.58. This indicates the market continuing to favor sellers.
Table 2: Contract Ratio for Townhomes in Fredericksburg
| Month | CLOSED | SOLD PRICE (MED) | DOM (AVE) | CONTRACT RATIO |
| June | 13 | $320,000 | 46 | 0.85 |
| May | 18 | $297,450 | 15 | 0.78 |
| April | 17 | $347,570 | 18 | 0.76 |
| March | 9 | $337,500 | 62 | 1.33 |
| February | 14 | $204,450 | 43 | 0.71 |
| January | 12 | $303,000 | 42 | 0.58 |
| December | 15 | $291,000 | 36 | 0.47 |
| November | 22 | $142,000 | 5 | 0.36 |
| October | 15 | $314,995 | 24 | 0.40 |
| September | 18 | $320,490 | 49 | 0.44 |
| August | 18 | 15 | 0.39 | |
| July | 17 | $287,500 | 51 | 0.24 |
FREDERICKSBURG CONDO ACTIVITY:
In Fredericksburg City, VA, the median sold price for condo properties for June was $267,000, representing an increase of 0% compared to last month and an increase of 118.9% from June 2019. The average days on market for units sold in June was 4 days, 88% below the 5-year June average of 34 days. There was a 0% month over month increase in new contract activity with 2 New Pendings; a 100% MoM increase in All Pendings (new contracts + contracts carried over from May) to 2; and a 100% increase in supply to 2 active units. This activity resulted in a Contract Ratio of 1.00 pendings per active listing, no change from May and an increase from 0.00 in June 2019.The Contract Ratio is 110% higher than the 5-year June average of 0.48. This indicates the market continuing to favor sellers.
Find out what's happening in Fredericksburgwith free, real-time updates from Patch.
Table 3: Contract Ratio for Condos in Fredericksburg
| Month | CLOSED | SOLD PRICE (MED) | DOM (AVE) | CONTRACT RATIO |
| June | 2 | $267,000 | 4 | 1.00 |
| May | 1 | 0 | 1.00 | |
| April | 2 | $295,000 | 18 | 0.50 |
| March | 3 | 0 | 0.33 | |
| February | 1 | 0 | 3.00 | |
| January | 3 | 0 | 0.33 | |
| December | 2 | $275,000 | 146 | 0.00 |
| November | 2 | $133,000 | 17 | 1.50 |
| October | 3 | $295,000 | 79 | 1.00 |
| September | 3 | $243,500 | 16 | 0.00 |
| August | 0 | $184,900 | 6 | 0.00 |
| July | 0 | $217,500 | 25 | 0.00 |
About Peggy Yee
Peggy Yee is a supervising broker at Frankly Realtors and is a local Top Producer. She has sold over $180 million in sales and was one of Northern Virginia Magazine's Top Realtors since 2015. She has been quoted in the Around Reston Magazine, Washington Post, Money Magazine, Consumer Reports, Zillow, Trulia and Realtor.com. Peggy is 100% committed to making your move the best experience possible! Don't just take our word...Click here to see what Peggy's past clients have to say about the experience working with her from Buyer and Seller Video Testimonials and you'll understand why she is one of the top real estate agents in Fredericksburg with dozens of 5 Star Zillow reviews. Click here for Zillow Reviews.
* Data Source: BrightMLS and SmartCharts. Information deemed reliable but not guaranteed.
