Despite the rise in inventory, REALTORS^® still consider it inadequate, and the limited supply of homes is hindering their clients.

By Abel Opoku-Adjei
Research Associate, Virginia REALTORS^®

Each month, the Virginia REALTORS^® Confidence Survey gathers important information from REALTORS^® on local housing markets based on their experiences with real estate transactions in the prior month. This data provides a real-time look at housing market conditions. This month’s Confidence Survey was conducted between July 29th, 2026, and August 6th, 2026, and reflects housing market conditions in Virginia in July 2026. A total of 516 Virginia REALTORS^® members responded to the survey, including 404 who participated in a home sales transaction in the past month.

Current Market Conditions

Buyers

According to REALTORS^® in Virginia, buyer activity took a dip compared to last month. The buyer activity index in July was 38, down from 42 in June. About 13% of respondents considered buyer activity in their local markets as “high” or “very high,” whereas 36% viewed it as “low” or “very low.”

Results From Virginia REALTORS^® Confidence Survey

About 30% of respondents indicated that their most recent transaction in July involved a first-time home buyer, a 1% increase from the previous month. Around 22% completed all-cash deals, decreasing from 29% in July. Nearly 15% of REALTORS^® worked on transactions for non-primary residences like rentals, second homes, or vacation properties, which is a 4% drop from June.

REALTORS^® reported an average of 1.8 offers in July, down from 2.3 in June. Nearly 23% mentioned that their clients received offers above the listing price in July, reflecting an 11% decrease from the previous month.

Sellers

REALTORS^® in Virginia noted that seller activity this month was relatively flat compared to a month ago. The Seller Activity Index increased to 46 in July from 45 in June. Approximately 14% of REALTORS^® reported that seller activity in their area was “high to very high,” while 22% indicated it was “low to very low” in July.

Obstacles

Buyers

Economic concerns are currently impacting the market, leading some clients to avoid buying. The survey showed that 19% of REALTORS^® see limited housing choices as a major hurdle for their clients. About 22% mentioned high mortgage rates as the primary challenge, and roughly 6% noted that clients struggle to save for a down payment. Additionally, many respondents reported that their buyer clients are finding it difficult to sell their first homes in this market.

Results From Virginia REALTORS^® Confidence Survey

Sellers

Around 11% of survey respondents indicated that their seller clients hesitated to sell in July because of low interest rates on their current homes. An additional 10% encountered challenges in locating suitable properties due to limited inventory. Nearly 13% cited rising home prices as the primary obstacle to selling. Several REALTORS^® have noted that their clients continue to struggle to find buyers willing to meet their listed prices.

Results From Virginia REALTORS^® Confidence Survey

Pending Sales Activity

In June, there were 9,791 pending sales across the state, a 3.1% increase compared to a year earlier, which is 296 more pending sales. Although most pending sales close successfully, delays and failures can occur for various reasons. The survey found that 286 real estate agents in Virginia had at least one seller client with a purchase agreement, and 75 of these deals did not close as planned. In the July survey, respondents highlighted key causes of contract failures. About 43% mentioned inspection issues, around 15% reported clients unable to sell their homes on schedule, and nearly 20% faced delays in mortgage approval. Additionally, nearly 7% encountered title troubles, and 5% said their clients lost their jobs.

Reasons For Selling

Results From Virginia REALTORS^® Confidence Survey

Our survey revealed the primary reasons, from realtors’ viewpoints, why sellers are putting their homes on the market in Virginia. Around 29% of REALTORS^® reported that their clients are relocating out of state in July, while 13% said their clients are thinking about moving within Virginia. Additionally, 19% mentioned clients wanting to downsize locally, and 13% reported clients seeking larger homes nearby. Finally, about 9% of agents noted their clients are selling a second property this month.

Market Outlook

Results From Virginia REALTORS^® Confidence Survey

REALTORS^® remain pessimistic about future buyer activity as the 3-month index outlook drops slightly. This index reflects REALTORS^®’ expectations for market activity over the next three months, decreasing to 41 in July from 42 in June. Approximately 12% of respondents expect increased buyer activity in their local markets, while 29% foresee a sharp decline.

In July, the Seller Activity Outlook Index for the next three months rose to 51 from 48 in the previous month. Approximately 15% of Virginia REALTORS^® anticipate increased seller activity in the upcoming quarter, while 14% expect it to decline from August through October. REALTORS^® also project home price trends over the next three months: about 36% expect prices to increase, 37% foresee steady prices, and 27% predict a decrease.

Virginia REALTORS^® Confidence Survey: 2026 Highlights

A An index greater than 50 indicates more respondents reported the level of activity as “high to very high” than reported the level of activity as “low to very low.”

B An index greater than 50 indicates more respondents expect future activity to be “strong” than expected future activity to be “weak.”

A note about surveys: This is not a randomized sample survey of Virginia REALTORS^® members. However, the number of responses and the geographic coverage of respondents make it possible to draw conclusions about the opinions and expectations of Virginia REALTORS^®. The statistics from this survey have a margin of error of +/- 5.46 %.

Responses to our surveys are confidential. We do not look at individual responses but rather report data in the aggregate.

For more information about Virginia’s housing market, check out our most recent home sales report, local housing market data.