Buyers Want In, but Limited Affordable Housing Is Holding Them Back, REALTORS^® Say

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 December 29th, 2025, and January 7th, 2026, and reflects housing market conditions in Virginia in December 2025. A total of 823 Virginia REALTORS^® members responded to the survey, including 601 who participated in a home sales transaction in the past month.

Current Market Conditions

Buyers

According to the survey, buyer activity remained at the same level as a month ago. The Buyer Activity Index in December stood at 34, unchanged compared to November. About 10% of respondents rated buyer activity in their local markets as “high” or “very high,” while 42% viewed it as “low” or “very low.”

Results From Virginia REALTORS® Confidence Survey

About 34% of respondents stated their latest transaction in December involved a first-time home buyer, up from 27% from November. In December, about 20% of REALTORS^® participated in all-cash transactions, down from 24 last month. Meanwhile, approximately 19% of REALTORS^® handled deals involving non-primary residences, such as rentals, second homes, or vacation properties, which represents a 4% decrease from November.

In November, REALTORS^® reported an average of 1.7 offers before closing, down from 2.2 last month. Additionally, roughly 24% of REALTORS^® said their clients received offers above the listing price in December, up from 20% compared to the prior month.

Sellers

Seller activity continued to decline for the fourth month in a row in December. The Seller Activity Index dropped to 33 from 36 the previous month. About 5% of REALTORS^® reported that seller activity in their area was “high to very high,” whereas 38% described it as “low to very low.”

Obstacles

Buyers

Buyer activity has slowed due to ongoing economic challenges that discourage home buying and cause delays in closing. Many clients face obstacles that hinder their closing process, with some issues being more prominent. According to the survey, nearly 26% of REALTORS^® cited limited housing options in Virginia as a major obstacle. Around 13% identified high mortgage rates as the key challenge, while approximately 9% noted that their clients struggle to save enough for a down payment.

Results From Virginia REALTORS® Confidence Survey

Sellers

Most survey respondents indicated that a combination of these obstacles was impacting their clients. Approximately 13% of REALTORS^® in Virginia noted that their seller clients were hesitant to sell because of low interest rates on their current homes. About 26% reported their clients had difficulty finding suitable properties due to restricted market inventory. Around 9% pointed to rising home prices as the main obstacle to selling.

Results From Virginia REALTORS® Confidence Survey

Pending Sales Activity

In November, the state recorded 7,107 pending sales, an increase of 244 from the previous year, representing 3.6%. While most pending sales successfully close, delays or failures can occur due to various factors. The survey indicated that 417 Virginia real estate agents reported at least one seller client with a purchase agreement; among these, 90 deals did not close as expected.

The December survey identified key reasons for these failures. Approximately 36% of deals collapse because of inspection problems. About 9% are due to low appraisals, and nearly 24% fail because buyers couldn’t get mortgage approval on time. An extra 7% faced job losses or financial difficulties that impacted their approval chances. Around 14% mentioned that their clients’ prior homes took too long to sell, while 9% reported major title issues blocking the closing process.

Reasons For Selling

Results From Virginia REALTORS® Confidence Survey

We surveyed the main reasons behind home listings in Virginia. According to the response, around 22% of REALTORS^® reported that their seller clients were moving out of the state. Nearly 12% indicated that clients intend to relocate within Virginia. An additional 18% said clients want to downsize locally, while 14% noted clients seeking larger homes nearby. Finally, around 10% of agents observed their clients selling a second property this month.

Market Outlook

Results From Virginia REALTORS® Confidence Survey

The outlook for future buyer activity has become more positive since last month. This index measures REALTORS^®’ expectations for market performance over the next three months. The index rose to 60 from 49 in November. About 33% of respondents anticipate an increase in buyer activity in their local markets in the coming three months, while 13% expect a decline.

The Seller Activity Index in December (3-Month Outlook) rose to 58, an increase of 16 points from the previous month. Approximately 28% of Virginia REALTORS^® forecast an increase in seller activity over the next three months, while 12% anticipate a decline from January to March. Additionally, 37% of surveyed REALTORS^® in Virginia expect home prices to rise in the upcoming three months. About 33% believe prices will remain stable, and 27% predict a decrease.

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^®. The statistics from this survey have a margin of error of +/- 3.42%.

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.