Virginia Real Estate Agents Express Pessimism Regarding Future Seller Activity Due to Economic Uncertainties

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 March 26th and April 2nd, 2025, and reflects housing market conditions in Virginia in March 2025. A total of 685 Virginia REALTORS^® members responded to the survey, including 446 who participated in a home sales transaction in the past month.

Current Market Conditions

Buyers

According to the survey, buyer activity in the state rose from February to March. The Buyer Activity Index in March was 46, up from 42 the prior month. About 24% of REALTORS^® rated the level of buyer activity in their local markets as “high” or “very high” in March, and 31% of REALTORS^® rated buyer activity in their local market as “low” or “very low.”

Results From Virginia REALTORS^® Confidence Survey

Nearly 26% of REALTORS^® stated their most recent transaction in March involved a first-time home buyer, down from 32% in February. Roughly 27% of recent home sales in March were all-cash purchases, down from 25% last month, according to REALTORS^® in the state. Around 21% of REALTORS^® stated their recent transaction in March involved a non-primary residence (e.g., rental property, second home, vacation home), a 2% drop from the prior month.

Recent home sales received an average of 2.3 offers in March, a slight increase from 1.9 in February. Approximately 37% of REALTORS^® reported that offers in March came above the listing price, up from 32% in February.

Sellers

Seller activity also increased in March compared to last month, according to REALTORS^®. The Seller Activity Index in March stood at 34, up six percentage points from a month ago. About 8% of REALTORS^® reported that seller activity was “high to very high” in their local market, while 41% of respondents indicated that seller activity was “low to very low.”

Obstacles

Buyers

Approximately 36% of respondents in the March survey stated that limited housing inventory in Virginia was a significant obstacle for their clients. Nearly 15% of agents cited high interest rates as the primary factor preventing them from buying a home in March. About 5% of REALTORS^® reported that clients experienced difficulties saving for a down payment. Many buyers are facing multiple challenges simultaneously due to the current economic climate.

Results From Virginia REALTORS^® Confidence Survey

Sellers

According to the March survey, virtually 15% of Virginia REALTORS^® reported that their seller clients hesitated to move due to worries about losing their low interest rates. Almost 12% of agents reported that their clients struggled to find suitable homes due to limited market inventory. In March, about 13% noted that rising home prices were the main issue their clients encountered when selling their homes. A significant number of sellers encountered a mix of these challenges throughout the month of March.

Results From Virginia REALTORS^® Confidence Survey

Pending Sales Activity

In February, Virginia recorded 6,776 pending sales, down by 580 compared to the previous year, marking a 7.8% decrease. While most pending sales usually lead to successful closings, there are recurring reasons for some transactions not completing. In March, 420 real estate agents in Virginia reported that at least one of their seller clients had a purchase agreement, but 37 of these sales did not close as anticipated.

We conducted a survey of REALTORS^® in March regarding why pending sales fell through this month. Nearly 38% cited inspection issues as the primary reason for the breakdown of purchase agreements, while 11% indicated appraisals came in too low. About 21% mentioned that buyers were unable to secure mortgage approval in time to complete the sale. Furthermore, 12% of REALTORS^® observed that buyers either lost their jobs or experienced financial difficulties affecting their mortgage approval.

Reasons For Selling

Results From Virginia REALTORS^® Confidence Survey

In March, about 24% of REALTORS^® reported that their seller clients were moving out of Virginia. About 13% indicated that clients were considering relocating to another area within Virginia. Approximately 16% of REALTORS^® noted that their clients were looking to downsize in their current location, while 12% of REALTORS^® clients were seeking larger homes in the same locality in March. Finally, around 14% of agents mentioned that their clients were selling a second home this month. The most common reason why some respondents chose “other” was because their clients were selling a home that they inherited or selling because of a divorce.

Market Outlook

Results From Virginia REALTORS® Confidence Survey

The outlook for future buyer housing activity increased from the prior month. This index measures REALTORS^®’ expectations for market performance over the next three months. The three-month buyer activity index in March rose slightly sharply to 53, up one from the month before. Roughly 27% of respondents believe that buyer activity will increase in their local markets over the next three months, while 21% think it will decline from April to June.

The Seller Activity Index (3-Month Outlook) saw a slight decrease from February to March, currently at 47, down one from 48 in February. Around 18% of Virginia REALTORS^® expect an increase in seller activity in the upcoming three months, while 25% anticipate a decline during the same period.

Finally, approximately 40% of Virginia REALTORS^® surveyed anticipate an increase in home prices over the next three months. Nearly 33% expect prices to remain stable between April and June, while 23% predict that prices will 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^®. These statistics from this survey have a margin of error of +/- 3.74%.

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.