Key Takeaways

• Virginia’s housing market saw a slight uptick in activity at the beginning of 2025. There were 5,758 home sales across the commonwealth in January 2025, 104 more sales than a year ago, inching up by 1.8%.
• Home prices have continued their upward trajectory in many local markets. The statewide median sales price was $399,000 in January, which is up by more than $27,000, reflecting a 7.3% increase.
• There was approximately $2.9 billion of sold volume throughout Virginia in January. This is about $347 million more than the same time last year, a 13.4% increase. A combination of more sales and higher prices has contributed to this growth.
• At the end of January, there were 16,990 active listings on the market across Virginia, 3,088 more listings than last year, representing a significant 22.2% jump in inventory levels.

Outlook

The 2025 housing market in Virginia has started off with a slight uptick in activity. Here are some key things to watch as we progress into 2025:

• Inventory conditions are expected to continue improving in 2025 driven by strong pent-up demand in the market along with additional inventory. Home purchases are more likely to come from the pool of move-up/repeat buyers, while growing prices and high interest rates will continue to be a hurdle for first-time buyers.
• Mortgage rates are expected to go down this year, but their path is projected to be bumpy due to uncertainty around the impact of new policies on consumer sentiment and overall prices in the economy. Sales activity is likely to closely follow these interest rate movements with an improvement in rates, boosting sales, and muted sales levels coinciding with periods of higher rates.

Click here to view the full January 2025 Virginia Home Sales Report.