Key Takeaways

• Home sales activity picked up in February, furthering the upward trend at the start of 2026, fueled by a combination of higher inventory and lower mortgage rates. There were 6,581 closed sales across the Commonwealth, 452 more sales compared to a year ago, a 7.4% increase.
• Home prices saw a modest increase across the state, but price trends varied widely across different regions. The statewide median sales price was $410,000 in February, going up $6,500 since last year, increasing by 1.6%.
• Higher sales activity led to an increase in sold dollar volume. There was approximately $3.4 billion of sold volume throughout Virginia in February. This is about $300 million higher than the same time last year, an 11% increase.
• At the end of February, there were 19,601 active listings on the market across Virginia. This represents 1,637 more listings than last year, a 9.1% jump in inventory levels.

Outlook

Virginia’s housing market showed continued momentum in February 2026. Along with rising inventory levels, continued buyer interest, and softening price growth in Virginia, the continued downward trend in mortgage rates was signaling towards a busier spring market this year. However, that momentum is likely to be tempered due to the economic uncertainty resulting from the Iran war. Here are some key trends to watch over the coming months:

• Mortgage rate trajectory is expected to be volatile as the financial markets grapple with surging energy prices and unsettled bond markets.
• Furthermore, supply chain disruptions are likely to drive up the cost of construction materials, which could lead to delays and higher prices in the new construction space. This is particularly troubling as the market has already been struggling with tight supply and affordability constraints.
• How significantly the conflict reshapes the spring market will depend largely on its duration. A swift resolution could allow rates to ease and activity to rebound quickly. A prolonged conflict, however, risks keeping buyers and sellers on the sidelines well into the season, worsening an already challenging environment.

Read the full February 2026 Virginia Home Sales Report for detailed market trends and insights.