Key Takeaways

• Sales activity in the July housing market rose slightly above last year’s level as rising mortgage rates are taking their toll. There were 10,362 closed sales statewide in July, up 1.8% from a year ago. This is the smallest increase so far this year, seven months into the 2026 market cycle. Year-to-date sales are still outpacing last year, up 4.9%.
• Home prices continue to climb in most parts of the state, but the pace has slowed in some regions. The statewide median sales price in Virginia in July was $448,000, climbing $13,000 from a year ago, reflecting a 3% increase.
• There was about $5.8 billion of sold volume statewide, up by roughly $200 million from last July. Higher prices and more sales continue to drive up the sold volume in Virginia’s housing market.
• Inventory levels continue to expand in Virginia. There were 28,357 active listings statewide at the end of July, a surge of 3,360 compared to a year ago (+13.4%). This is the largest influx of listings so far this year.

Outlook

Activity in Virginia’s housing market rose this month, but it was the slowest growth so far this year. Are we approaching a pivot to slower market conditions as mortgage rates rise? Here are some things to watch for in the coming months:

• Mortgage rates have been trending up, and this could start to dampen activity heading into the fall housing market if the pattern holds. Early signs of this are the pullback in pending sales in July statewide compared to a year ago, the first drop in a year and a half.
• Supply continues to expand in Virginia’s housing market, which is a positive trend as the supply/demand imbalance remains in play with around 3 months of supply overall. The increase in supply has been consistent all year so far, and this is likely to continue, which will provide more options for buyers that are active in the market.

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