Key Takeaways

• Home sales outpaced last year in July. There were 10,182 closed sales statewide this month, 235 more than a year ago (+2.4%). This reflects two consecutive months of increased sales activity, though year-to-date sales totals are flat for 2025 compared to 2024 due to the sluggish spring market.
• Price levels continue to climb, but the rate of growth has slowed in many local markets around Virginia. The statewide median sales price in July was $435,000. This is $9,000 higher than the median price a year ago, a 2.1% increase.
• Sold volume levels continue to be higher than last year in Virginia’s housing market. There was about $5.6 billion of sold volume throughout the state in July, an influx of about $330 million from last July (+6.3%).
• Inventory levels are building up as more sellers enter the market. There were 24,429 active listings statewide at the end of July, a 27.5% surge from a year ago, which is an additional 5,267 listings.

Outlook

• Mortgage rates have fallen over the last four weeks to their lowest level of 2025, near the mid-6% range. This drop was largely driven by the weak job numbers which drove up demand for treasury bonds and pushed down the yields, including the 10-year treasury yield which the 30 fixed mortgage rate follows. It’s still unclear where the rates will go from here, but if rates stabilize in the mid-6%s or fall further it could spur more activity in what has been a sluggish 2025 housing market so far.
• Inventory levels have improved so far in 2025, and this trend is likely to continue. Buyers have more options and even though the overall months of supply is still tight, the market is shifting more into balance.
• Home prices are still climbing, but there are some early signs that some local markets are nearing a pivot as active listings surge. Price growth is likely to be modest in the coming months and in some local areas price dips are possible.

You can view the full July 2025 Virginia Home Sales Report here.