Virginia housing sales market cooling: Slow economy making it a buyers' market

Recent data indicates that the housing market in Virginia is experiencing a slowdown, a trend that local realtors have been reporting in recent weeks. The Virginia Association of REALTORS® released the September 2026 Virginia Home Sales Report on Friday, revealing that 8,410 homes were sold in September. This figure marks a decrease of 373 sales compared to the same month last year, translating to a 4.2 percent decline.

Pending sales have also seen a significant drop, plummeting by 14.3 percent when compared to September 2025. Ryan Price, the chief economist for the Virginia Association of REALTORS®, attributes this decline to "rising mortgage rates." He noted that the increased cost of borrowing has led some potential buyers to temporarily halt their home searches, which is evident in both the reduction in completed sales and the fall in pending transactions. Price cautioned that if mortgage rates continue to rise, Virginia may face a more sluggish housing market than it did the previous year.

The current rise in mortgage rates is linked to a struggling economy, which has been impacted by several factors, including tariffs imposed during the Trump administration that have slowed global economic activity. Additionally, the ongoing conflict in Iran has driven up the prices of gas and diesel, further affecting domestic economic conditions.

In terms of pricing, the statewide median sales price in Virginia stood at $420,000 in September, remaining stable compared to the previous year. However, there is increasing downward pressure on prices due to the availability of homes, with 30,001 active listings statewide, representing a 20.4 percent rise from the same period last year.

New listings have also been robust, with over 14,100 homes entering the market, reflecting a 7.6 percent increase compared to September 2025. This influx of properties has resulted in homes spending longer on the market; the median days on market increased to 22 days in September, up from 20 days a year prior. This trend indicates a deceleration in sales activity across numerous local markets.

Overall, the current conditions suggest that it is a buyers' market. Curt Reichstetter, the 2026 President of the Virginia Association of REALTORS®, commented on the situation, stating, "As inventory levels continue to improve, we’re seeing a healthier and more balanced market emerge in many communities across Virginia. Buyers have more choices and a little more time to make decisions than they did during the highly competitive market of recent years."