May Housing Report Shows "Mixed Signals"

Fredericksburg Area Association of Realtors report finds that both the median home price and the number of units sold are up.

By Adele Uphaus
MANAGING EDITOR AND CORRESPONDENT
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Photo by Tierra Mallorca on Unsplash

Last month, the median home price in the Fredericksburg area climbed to the highest it’s ever been—$489,900, up 3% from May of 2024.

However, “those stubborn high prices didn’t deter buyers,” according to the Fredericksburg Area Association of Realtors—the number of units sold also increased by almost 3% over last May.

FAAR released the May local real estate report earlier this week and notes that it sends “mixed signals” about the market.

“The local real estate market in May continued to post higher rates of inventory than in the past, but also posted the highest median price ever on record,” a press release about the report states. “Robust sales coupled with high prices led to a nearly 8% increase in total sold dollar volume, besting last year’s approximately $292.4 million with $313.8 million in sales for this May.”

Kim McClellan, FAAR’s public policy director, wrote in an email to the Advance that the local housing market is “seeing an increase in inventory like most of the country.”

“Our active listings were up 40% over last year, which is a huge increase, but we’re also seeing steady demand,” McClellan wrote. “Our market was so far under-supplied that even that increase in inventory still leaves us with a very competitive market.”

Pent-up demand for housing is fueling “higher and higher prices,” McClellan said.

“This is especially true for homes of about $500,000 and less,” she wrote. “There is a lot of competition in the lower half of the market.”

The highest median home price locally is $579,000 in Stafford County, representing a 5% year-over-year increase from 2024. Stafford also led the pack in terms of the number of homes sold—221, up 2% over last year.

The lowest median home price was in Caroline County, falling by 2% from last year to $369,950. The number of homes sold in Caroline also fell compared to last year.

The median home price in the City of Fredericksburg—$525,000—increased by 17% year-over-year, more than any of the other localities. The number of units sold in the city also increased more than in any other locality.

May was also only the second time since 2020 that the local market has seen two consecutive months with 1,000 or more homes listed for sale, according to FAAR.

“At the end of May 2025, there were 1,143 homes actively listed on the MLS, a more than 40% increase from the 814 homes that were for sale at the end of last May,” the press release states.

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