🐝 Market Reality Check: Fredericksburg In-Town Short-Term Rentals (Q3 2025)

Short-term rentals continue to play a huge role in Fredericksburg’s market, but the Q3 numbers show buyers are negotiating and sellers are adjusting expectations.

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📊 Q3 In-Town STR Snapshot (Medians)

• Original List Price: $669,500
• Final List Price: $624,000
• Sold Price: $595,350
• Gap from Original List to Sold: 11.07% lower
• List-to-Sold Ratio (final list): 94.14%
• Median Days on Market: 161
• Median Price per SqFt: $370.10
• Median Home Size: 1,744 sq. ft.
• Median Lot Size: 0.28 acres

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🐝 What This Means for Sellers

• Pricing pressure is real. On average, STR sellers gave up over 11% from their original asking price before landing a deal.
• Longer timelines. The median STR sat 161 days on the market—almost 6 months—before finding a buyer.
• Premiums are selective. At $370/sqft median, buyers will still pay top dollar for turnkey, income-ready STRs—but not for every property.

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🐝 What This Means for Buyers

• Negotiation is back. Buyers are securing homes below asking price, with plenty of leverage if a property has been sitting.
• Time to analyze returns. With higher per-square-foot pricing, buyers need to crunch STR income numbers carefully to be sure they’ll cash flow.
• Options are available. Longer DOM means more properties to choose from—without the frenzy of multiple offers.

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🍯 The Buzz

Fredericksburg’s in-town STR market has cooled from its peak. Sellers are having to price strategically, while buyers can take their time and negotiate smartly. For investors, this slower pace offers opportunity—if you know how to run the numbers and spot the right property.

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👉 Together with the in-town residential stats, these STR numbers paint a clear picture: the Fredericksburg market is shifting, but there are still plenty of opportunities for both homeowners and investors.

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Liza Smith
Realtor® | Absolute Charm Real Estate Group at eXp Realty LLC
📲 830.998.5853 | 📧 liza@absolutecharm.com