lindley (1)

Business Insider

Lindley Estes is a business writer for The Free Lance-Star and This blog is on Fredericksburg-area business. Send an e-mail to Lindley Estes.

RSS feed of this blog

Local housing market showing signs of improvement

The Fredericksburg-area housing market continued to show signs of improvement in September, with sales and prices both rising from the year before.

Statistics released Wednesday by Metropolitan Regional Information Systems Inc. also indicated that bank financing is getting easier to obtain, and that foreclosures are becoming less common.

The median price for a home sold through the Multiple Listing Service in the Fredericksburg region last month was $220,000, up 10 percent from September 2011.

There were 335 homes sold, 7 percent better than a year ago. Fourteen of the sales were for $500,000 or more.

Foreclosures made up just 14 percent of total sales. During the peak of the housing crisis in early 2009 foreclosures comprised nearly half the total.

About 36 percent of the homes sold in September were purchased using conventional bank loans, the highest percentage since July 2008. Fewer people are now using loans backed by the federal government, although those remain a sizable percentage.

Homes that sold last month spent about 62 days on the market, down 29 percent year-over-year. Homes sold for about a 4.5 percent discount to list price on average.

There were about 1,485 homes on the local market at the end of September, meaning there was about a 4.4-month supply. Anything below five months is considered a healthy balance between supply and demand.

The Fredericksburg area comprises the city and Caroline, King George, Spotsylvania and Stafford counties.

Post tags: