The city of Fredericksburg lies halfway between Richmond and the District. As recently as 10 years ago, Fredericksburg probably couldn’t be classified as a suburb of either city. Today, it is clearly a part of the Washington metropolitan area.
Ten years ago, annual existing-home sales for Stafford and Spotsylvania counties, which surround Fredericksburg, totaled 1,500 to 1,700 per year. In 2003, 5,400 homes were sold. And if you don’t believe many of those people work in Northern Virginia and the District, you haven’t been on Interstate 95 lately.
The high prices and competitive nature of the Arlington, Alexandria and Fairfax markets are causing more buyers to shop for homes in Prince William, Loudoun, Stafford and Spotsylvania counties. For the most part, they find lower prices — but they can’t shake the competition.
“I don’t think our market is much different than it is up north,” says Sunset G. Caldwell, 2004 president of the Fredericksburg Area Association of Realtors. “It is a seller’s market down here, especially for homes priced $250,000 or less. Demand is very high for properties like that. Most are receiving multiple offers and selling for more than the listing price.”
One difference between Stafford and Arlington counties: Up north, Realtors say the market is hottest for homes under $450,000, much higher than the $250,000 Mr. Caldwell reports for his community.
Spotsylvania County is the second-most-affordable community in the metropolitan area, with a median sales price of $190,000 in 2003. Only Prince George’s County was lower, at $183,500.
Prices like that allow a family to purchase a single-family home on a decent piece of land. For the same money you’d spend down south, you can’t buy much more than a condo in Arlington or Alexandria.
That dynamic is biggest reason for the increasing buyer interest in distant counties.
“Essentially, people are willing to exchange a long commute for a larger home than they could afford up north,” Mr. Caldwell says.
With the completion the Springfield interchange and other I-95 improvements, we can expect to see continued buyer interest in the Fredericksburg area, even if it is halfway to Richmond.
— Chris Sicks
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