Buyers and Sellers Hesitant to Engage in the Housing Market Because of the Economic Uncertainties Occurring Nationwide.

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 April 24th and April 30th, 2025, and reflects housing market conditions in Virginia in April 2025. A total of 664 Virginia REALTORS^® members responded to the survey, including 474 who participated in a home sales transaction in the past month.

Current Market Conditions

Buyers

Survey participants reported an increase in buyer activity in their local markets from March to April. In April, the Buyer Activity Index climbed to 52, up from 46 the prior month. About 27% of respondents classified the level of buyer activity in their local markets as “high” or “very high” in April, while 24% of REALTORS^® described buyer activity in their local market as “low” or “very low.”

Results From Virginia REALTORS® Confidence Survey

About 26% of REALTORS^® stated their most recent transaction in April involved a first-time home buyer, unchanged from the prior month. According to REALTORS^®, nearly 24% of recent home sales in April were all-cash purchases, an increase from 27% last month. Around 16% of REALTORS^® stated that their recent transactions in April involved a non-primary residence (e.g., rental property, second home, vacation home), a 5% drop from a month ago.

In April, recently closed listings had an average of 2.3 offers, consistent with March. About 42% of REALTORS^® indicated that offers in April exceeded the listing price, rising from 37% in March.

Sellers

According to REALTORS^®, seller activity rose compared to a month ago. The Seller Activity Index for April reached 39, reflecting a five-point increase from March. Approximately 12% of REALTORS^® reported that seller activity was “high to very high” in their local market, whereas 35% described it as “low to very low.”

Obstacles

Buyers

Roughly 31% of respondents identified limited housing availability in Virginia as a major challenge for their clients in April. Almost 20% of agents pointed to high interest rates as the leading reason hindering home purchases in April. Approximately 6% of REALTORS^® noted that clients struggled to save for a down payment. A notable number of REALTORS^® reported that their buyer clients are encountering a mixture of these challenges in the market.

Results From Virginia REALTORS® Confidence Survey

Sellers

The April survey revealed that nearly 16% of Virginia REALTORS^® found their seller clients reluctant to move, primarily due to concerns about losing their low interest rates. Additionally, almost 12% of agents noted that their clients faced difficulties in locating suitable homes given the restricted market inventory. Around 13% of agents identified rising home prices as the primary obstacle for their clients when selling their properties. Throughout April, many sellers dealt with a combination of these challenges.

Results From Virginia REALTORS® Confidence Survey

Pending Sales Activity

There were 9,435 pending sales across Virginia in March, which represents an increase of 5.1%, or 454 additional pending sales, compared to the same time last year. While most pending sales typically lead to successful closings, there are several recurring reasons why some transactions do not close as intended. In April, 363 real estate agents in Virginia reported that at least one of their seller clients had a purchase agreement; however, 72 of these sales did not close as expected.

We conducted a survey of REALTORS^® in April to understand why pending sales fell through this month. Nearly 40% of respondents cited inspection issues as the primary reason for the breakdown of purchase agreements. Additionally, 12% noted that appraisals came in too low. About 18% mentioned that buyers were unable to secure mortgage approval in time to complete the sale. Furthermore, 22% of REALTORS^® observed that some buyers lost their jobs or faced financial difficulties that affected their mortgage approval.

Reasons For Selling

Results From Virginia REALTORS® Confidence Survey

In April, approximately 21% of REALTORS^® reported that their seller clients were relocating out of Virginia. Roughly 13% stated that their clients were considering moving to another area within Virginia. Nearly 20% of REALTORS^® noted that their clients were looking to downsize in their current area, while 14% mentioned that clients were seeking larger homes in the same area as of April. Additionally, about 7% of agents indicated that their clients were selling a second home this month.

Market Outlook

Results From Virginia REALTORS® Confidence Survey

The outlook for future buyer housing activity increased from the prior month. This index measures REALTORS^®’ expectations for market performance over the next three months. The three-month buyer activity index in April stood at 52, a slight dip from 53 in March. Around 25% of respondents believe that buyer activity will increase sharply in their local markets over the next three months, while 21% believe their market will experience a sharp decline from May to July.

The Seller Activity Index (3-Month Outlook) experienced a slight increase from March to April, now standing at 49, an increase from 47 in March. Approximately 20% of Virginia REALTORS^® believe that seller activity will rise in the next three months, whereas 23% expect it to decrease during that time.

Lastly, around 47% of surveyed Virginia REALTORS^® foresee a rise in home prices in the next three months. Almost 33% believe prices will stay stable from May to July, while 24% anticipate a decline.

Virginia REALTORS^® Confidence Survey: 2025 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^®. These statistics from this survey have a margin of error of +/- 3.74%.

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.