Key Takeaways

• Sales activity in many parts of the Commonwealth slowed down in August as mortgage rates continued to rise. There were 8,985 closed sales statewide, 438 fewer sales than last August, a 4.6% decrease. Year-to-date sales through August are up 3.6% over this time last year.
• While sales activity cooled, home prices continue to rise in many parts of Virginia. The statewide median sold price in August was $449,000, climbing $19,000 from a year ago, a 4.4% increase.
• Moderating sales pulled down the sold dollar volume this month. There was approximately $5 billion of sold volume statewide in August, down by about $125 million (-2.5%).
• The inventory of active listings continues to grow. There were 28,560 homes listed for sale on the market at the end of August across Virginia, an influx of 3,464 listings from a year ago, a 13.8% surge.

Outlook

Sales cooled but prices are still rising in Virginia’s Housing market. Will these trends continue heading into the fall market? Here are some things to watch for in the coming months:

• The pullback in closed sales in August and the slowdown in pending sales in August and also in July reflect the impact that rising mortgage rates are having on buyers. Average mortgage rates are now higher than they were at this time last year, and also two years ago, a pivot that occurred just as the August 2026 market began. Since that time, the gap has widened even further, with rates approaching three-quarters of a percentage point higher than September of 2025. These mortgage rate trends point to a likely slower fall market than last year.
• Median prices continue to climb in most areas of the state, and this is a reflection of higher priced homes continuing to sell, and also the supply/demand imbalance that remains a factor in many parts of Virginia. However, as more supply becomes available and home sales moderate from rising mortgage rates, price growth could start to soften as we close out the year, though it will likely be price-point specific, and also vary across regional markets.

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