Agents Notice That Sellers Are Overpricing Their Homes, Discouraging Buyers From Participating In The Market.

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 February 25th, 2026, and March 5th, 2026, and reflects housing market conditions in Virginia in February 2026. A total of 526 Virginia REALTORS^® members responded to the survey, including 347 who participated in a home sales transaction in the past month.

Current Market Conditions

Buyers

The survey indicates that buyer activity stayed the same compared to the previous month. According to the results, buyer activity index in February was 44, unchanged from a year ago. Roughly 16% of respondents considered buyer activity in their local markets as “high” or “very high,” whereas 29% viewed it as “low” or “very low.”

Results From Virginia REALTORS^® Confidence Survey

Approximately 34% of respondents reported that their most recent transaction in February involved a first-time home buyer, up 2% compared to January. In the same month, about 17% of REALTORS^® engaged in all-cash transactions, down from 22% in January. Additionally, about 19% of REALTORS^® worked on transactions involving non-primary residences, such as rentals, second homes, or vacation properties, reflecting a 2% increase from the prior month.

REALTORS^® reported an average of 1.9 offers in February, up from 1.3 last month. Additionally, roughly 29% of REALTORS^® said their clients received offers above the listing price in February, showing an increase from 23% in January.

Sellers

According to REALTORS^® in Virginia, seller activity rose slightly for a second consecutive month.  The Seller Activity Index rose to 37 from 36 the prior month. Approximately 8% of REALTORS^® indicated that seller activity in their area was “high to very high,” while 33% reported it as “low to very low.”

Obstacles

Buyers

Buyer activity has declined due to ongoing economic challenges that discourage purchases and delay closings. Nearly 35% of REALTORS^® identified limited housing options as a significant barrier. About 8% cited high mortgage rates as the main challenge, and roughly 11% said clients struggle to save for a down payment. Many clients are hesitant to buy because of concerns about job security. Survey respondents also noted that February’s inclement weather impeded some buyers.

Results From Virginia REALTORS^® Confidence Survey

Sellers

About 12% of REALTORS^® in Virginia reported their seller clients hesitated to sell due to low interest rates on their current homes. Another 13% cited difficulty finding suitable properties because of limited inventory. Nearly 13% identified rising home prices as the main obstacle to selling. Some REALTORS^® mentioned that February’s inclement weather was the biggest deterrent for their clients. Others noted that inflated listing prices are unrealistic in the current market.

Results From Virginia REALTORS^® Confidence Survey

Pending Sales Activity

In January, the state recorded 6,723 pending sales, adding 844 more listings from a year earlier, marking a 14.4% rise. Although most pending sales close successfully, delays and failures can happen for various reasons. The survey found that 251 Virginia real estate agents reported at least one seller client with a purchase agreement, and 60 of these deals did not close as expected.

Respondents to the February survey pinpointed key reasons for failed transactions. About 57% attributed failures to inspection issues, around 17% to low appraisals, nearly 13% to buyers not securing timely mortgage approval, and another 9% to job loss or financial hardship. Additionally, 13% reported stagnant sales, while 6% referenced major title complications that blocked closing.

Reasons For Selling

Results From Virginia REALTORS^® Confidence Survey

We surveyed the primary reasons why sellers were listing their homes in Virginia. About 23% of REALTORS^® mentioned their seller clients are moving out of state in February. Nearly 11% said clients plan to relocate within Virginia. An additional 23% noted clients want to downsize locally, while 11% reported clients seeking larger homes nearby. Finally, around 7% of agents observed clients selling a second property this month.

Market Outlook

The outlook for future buyer activity has declined from a month ago. This index gauges REALTORS^®’ expectations for market behavior over the next three months, falling to 66 from 70 in January. Approximately 42% of respondents foresee an increase in buyer activity in their local markets in the next three months, whereas 10% expect a decrease.

Results From Virginia REALTORS® Confidence Survey

The Seller Activity Index in February (3-Month Outlook increased modestly to 58, marking a two-point decrease from the previous month. Nearly 28% of Virginia REALTORS^® expect seller activity to grow over the next three months, whereas 13% foresee a decline between March and May. Lastly, 39% of surveyed REALTORS^® in Virginia anticipate home prices will trend upwards the next three months. Around 37% believe prices will stay steady, and 18% 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.