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 January 30th, 2026, and February 5th, 2026, and reflects housing market conditions in Virginia in January 2026. A total of 568 Virginia REALTORS^® members responded to the survey, including 379 who participated in a home sales transaction in the past month.

Current Market Conditions

Buyers

The survey indicates that buyer activity was stable compared to the previous month. In January, the Buyer Activity Index stood at 44, up from 34 in December. Approximately 18% of respondents considered buyer activity in their local markets as “high” or “very high,” whereas 31% viewed it as “low” or “very low.”

Results From Virginia REALTORS^® Confidence Survey

Approximately 32% of respondents reported that their most recent transaction in January involved a first-time home buyer, a 2% drop compared to December. In the same month, about 22% of REALTORS^® engaged in all-cash transactions, a slight increase compared to last month. Additionally, roughly 21% 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 1.3 offers in January, down from 1.7 last month. Additionally, roughly 23% of REALTORS^® said their clients received offers above the listing price in January, down one from a month ago.

Sellers

After four months of decline, seller activity increased slightly in January. The Seller Activity Index rose to 36 from 33 last month. Approximately 9% of REALTORS^® indicated that seller activity in their area was “high to very high,” while 37% reported it as “low to very low.”

Obstacles

Buyers

Buyer activity has declined due to ongoing economic difficulties that discourage home purchases and delay closings. Many clients encounter obstacles during their closing process, with some issues standing out more than others. According to the survey, nearly 31% of REALTORS^® reported limited housing options in Virginia as a significant obstacle. About 10% pointed to high mortgage rates as the primary challenge, while roughly 9% noted that their clients find it difficult 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 affecting their clients. About 12% of REALTORS^® in Virginia reported that their seller clients hesitated to sell because of low interest rates on their current homes. Virtually 12% said their clients had trouble finding suitable properties due to limited market inventory. Nearly 13% identified rising home prices as the main obstacle to selling.

Results From Virginia REALTORS^® Confidence Survey

Pending Sales Activity

In December, the state recorded 5,778 pending sales, reflecting a 119 increase from the previous year, or a 2.3% rise. Although most pending sales close successfully, delays and failures can happen for various reasons. The survey found that 318 Virginia real estate agents reported at least one seller client with a purchase agreement, and 55 of these deals did not close as expected.

Respondents in the January survey identified the main causes for these failures. About 36% of deals fall through due to inspection issues, around 4% due to low appraisals, nearly 20% due to buyers not securing mortgage approval on time, and another 9% due to job losses or financial hardships impacting approval. Additionally, 16% said their clients’ homes took too long to sell, while 16% faced significant title issues preventing closing.

Reasons For Selling

Results From Virginia REALTORS^® Confidence Survey

We surveyed the primary reasons why sellers were listing their homes in Virginia. About 20% of REALTORS^® mentioned their seller clients are moving out of state. Nearly 11% said clients plan to relocate within Virginia. An additional 19% noted clients want to downsize locally, while 16% reported clients seeking larger homes nearby. Finally, around 9% of agents observed clients selling a second property this month.

Market Outlook

Results From Virginia REALTORS^® Confidence Survey

The outlook for future buyer activity has improved since last month. This index gauges REALTORS^®’ expectations for market behavior over the next three months, rising to 70 from 60 last month. Approximately 44% of respondents foresee an increase in buyer activity in their local markets in the next three months, whereas 7% expect a decrease.

The Seller Activity Index in January (3-Month Outlook increased modestly to 59, marking a one-point rise from the previous month. About 32% of Virginia REALTORS^® expect seller activity to grow over the next three months, whereas 12% foresee a decline between February and April. Furthermore, 44% of surveyed REALTORS^® in Virginia anticipate home prices will increase in the upcoming quarter. Around 32% believe prices will stay steady, and 20% 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 +/- 4.11 %.

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.