REALTORS^® in Virginia Report Lower Than Anticipated Buyer Activity Due To Economic Challenges. 

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 August 26, 2026, and September 1, 2026, and reflects housing market conditions in Virginia in August 2026. A total of 516 Virginia REALTORS^® members responded to the survey, including 447 who participated in a home sales transaction in the past month. 

Current Market Conditions 

Buyers  

The August survey report showed that buyer activity fell sharply from a month ago, according to respondents. The buyer activity index in August was 28, down from 38 in July. About 7% of respondents considered buyer activity in their local markets as “high” or “very high,” whereas 50% viewed it as “low” or “very low.” 

Nearly 26% of respondents reported that their most recent August transaction involved a first-time home buyer, representing a 3% decrease from July. About 23% completed all-cash deals, a slight drop from 22% in July. Approximately 18% of REALTORS^® handled transactions for non-primary residences such as rentals, second homes, or vacation properties, marking a 3% increase from July. 

REALTORS^® averaged 1.6 offers per transaction in August, down from 1.8 in July. Nearly 22% stated their clients received offers above the listing price, a 1% decline from the previous month. 

Sellers 

Virginia REALTORS^® observed that seller activity slightly dipped compared to last month. The Seller Activity Index fell to 41 in August from 46 in July. Around 12% of REALTORS^® reported high to very high seller activity in their area, while 30% characterized it as low to very low in August.  

Obstacles  

Buyers 

Economic concerns are currently impacting the market, leading some clients to avoid buying. The survey showed that 15% of REALTORS^® see limited housing choices as a major hurdle for their clients. About 20% mentioned high mortgage rates as the primary challenge, and roughly 10% noted that clients struggle to save for a down payment. Furthermore, many respondents mentioned that their buyer clients are struggling to find buyers willing to pay the listing price for their initial home.  

Sellers 

Approximately 9% of survey respondents reported that their seller clients hesitated to sell in August because of low interest rates on their current homes. Another 8% faced difficulties finding suitable properties due to limited inventory. Nearly 13% identified rising home prices as the main barrier to selling. Several REALTORS^® also noted that their clients still had trouble finding buyers in August. 

Pending Sales Activity 

In July, there were 8,754 pending sales across the state, a 4.7 % decrease compared to a year earlier, which is 434 fewer pending sales. Although most pending sales close successfully, delays and failures can occur for various reasons. The August survey found that 198 real estate agents in Virginia had at least one seller client with a purchase agreement, and 67 of these deals did not close as planned. Respondents highlighted key causes of contract failures. About 52% mentioned inspection issues, around 20% reported clients unable to sell their homes on schedule, and nearly 16% faced delays in mortgage approval. Additionally, nearly 5% encountered title troubles, and 2% said their clients lost their jobs.   

Our survey revealed the primary reasons, from REALTORS^®’ viewpoints, why sellers are putting their homes on the market in Virginia. Around 22% of REALTORS^® reported that their clients are relocating out of state in August, while 10% said their clients are planning to move within Virginia. Additionally, 21% mentioned clients wanting to downsize locally, and 18% reported clients seeking larger homes nearby. Finally, about 9% of agents noted their clients are selling a second property this month.  

Market Outlook 

REALTORS^® remain pessimistic about future buyer activity as the 3-month index outlook dropped for a third straight month. This index reflects REALTORS^®’ expectations for market activity over the next three months, decreasing to 37 in August from 41 in July. Approximately 8% of respondents expect increased buyer activity in their local markets, while 35% foresee a sharp decline. 

In August, the Seller Activity Outlook Index for the upcoming three months dropped to 46 from 51 the previous month. Around 15% of Virginia REALTORS^® expect higher seller activity in the next quarter, while another 15% anticipate a decline from September through November. REALTORS^® also have predictions for home prices over the next three months: approximately 20% expect prices to rise, 30% believe they will stay steady, and 30% forecast 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.