According to REALTORS^®, First-Time Home Buyers Feel Discouraged to Purchase a Home Due To Current Economic Conditions 

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, 2026, and April 30th, 2026, and reflects housing market conditions in Virginia in April 2026. A total of 457 Virginia REALTORS^® members responded to the survey, including 335 who participated in a home sales transaction in the past month. 

Current Market Conditions 

Buyers  

According to REALTORS^® in Virginia, buyer activity rose for three straight months. In April, the buyer activity index stood at 54, up from 52 in March. About 28% of respondents considered buyer activity in their local markets as “high” or “very high,” whereas 21% viewed it as “low” or “very low.” 

According to the survey results, 31% of respondents said their most recent transaction in April involved a first-time homebuyer, down four percentage points from March. Roughly 23% of REALTORS^® engaged in all-cash transactions in April, unchanged compared to a month ago. Nearly 18% of REALTORS^® handled transactions involving non-primary residences, like rentals, second homes, or vacation properties, marking a 3% increase from the prior month. 

REALTORS^® reported an average of 2.2 offers in April, down from 2.4 offers in March. Around 39% of REALTORS^® said their clients received offers above the listing price in April, relatively flat from last month, which was 38% 

Sellers 

REALTORS^® in Virginia are experiencing increased seller activity. The Seller Activity Index increased to 48 from 41 a month earlier. In April, about 15% of REALTORS^® said seller activity in their area was “high to very high,” whereas 20% reported it as “low to very low.” 

Obstacles  

Buyers 

Market activity continues to increase each month, which is typical for this time of year when people are looking to buy homes. However, some clients were unable to participate in the buying process this month because of certain obstacles. According to the survey, 31% of REALTORS^® stated that limited housing options were a major barrier for their clients. About 12% pointed to high mortgage rates as the primary challenge, while approximately 8% mentioned that clients find it difficult to save for a down payment. Some respondents reported that their clients were simply outbid this month, preventing them from purchasing a home in April. 

Sellers 

Approximately 10% of REALTORS^® in Virginia noted that their seller clients hesitated to sell in April due to low interest rates on their current homes. An additional 14% reported challenges in finding suitable properties because of limited inventory. Nearly 11% cited rising home prices as the primary obstacle to selling. REALTORS^® have stated that buyers are hesitant to purchase homes from their seller clients due to economic uncertainty.  

Pending Sales Activity 

Across the state, there were 10,121 pending sales reported in March, up 7.3% compared to the previous year, translating to 686 more pending sales. Although most pending sales close successfully, delays and failures can happen for various reasons. The survey recorded that 276 Virginia real estate agents had at least one seller client with a purchase agreement, and 62 of these deals did not close as expected. 

Respondents to the April survey pinpointed key reasons for failed transactions. About 54% attributed failures to inspection issues, about 7% result from low appraisals, nearly 13% stem from buyers failing to get timely mortgage approval, and around 9% are caused by job loss or financial hardship. Additionally, almost 9% of respondents experienced title problems, while 15% couldn’t sell their previous home in time to complete a purchase.  

Reasons For Selling

We surveyed the primary reasons why sellers were listing their homes in Virginia. Approximately 25% of REALTORS^® mentioned that their seller clients are relocating out of state in April, while 15% indicated their clients are considering moves within Virginia. Additionally, 19% noted that clients want to downsize locally, and 12% reported clients seeking larger homes nearby. Finally, around 9% of agents said their clients are selling a second property this month.  

Market Outlook 

The outlook for future buyer activity has picked up as we enter a busy spring market. This index measures REALTORS^®’ expectations for market activity in the coming three months, rising to 60 in April from 57 in March. About 32% of respondents anticipate more buyer activity in their local markets during this period, while 12% expect a decline. 

The Seller Activity Outlook Index in April (3-Month Outlook) rose to 56, marking a two-point increase from a month ago. About 27% of Virginia REALTORS^® expect seller activity to increase in the next three months, while 14% anticipate a decline from May to July. Additionally, 44% of surveyed REALTORS^® in Virginia expect home prices to rise over the same period. About 29% believe prices will remain stable, and 21% expect 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 +/- 4.1 %.

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, and local housing market data.