Economic Uncertainty Continues to Impact Sellers and Buyers 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 May 27th, 2026, and June 4th, 2026, and reflects housing market conditions in Virginia in May 2026. A total of 322 Virginia REALTORS^® members responded to the survey, including 235 who participated in a home sales transaction in the past month. 

Current Market Conditions 

Buyers  

According to REALTORS^® in Virginia, buyer activity in May was relatively low compared to April. The buyer activity index in May was 42, which is down from 54 in April. About 16% of respondents considered buyer activity in their local markets as “high” or “very high,” whereas 31% viewed it as “low” or “very low.”  

According to the survey respondents, 29% said their most recent transaction in May involved a first-time home buyer, dropping down two percentage points from April. Roughly 20% of the survey respondents engaged in all-cash transactions in May, a decrease from 23% the previous month. Nearly 15% of REALTORS® handled transactions involving non-primary residences, like rentals, second homes, or vacation properties, reflecting a 3% decrease from a month ago. 

REALTORS® reported an average of 2 offers in May, down from 2.2 offers in April. Nearly 38% of REALTORS® said their clients received offers above the listing price in May, which is unchanged from the month prior.  

Sellers 

REALTORS® in Virginia noticed a considerable dip in seller activity. The Seller Activity Index decreased from 48 in April to 40 in May. About 11% of REALTORS® said seller activity in their area was “high to very high,” whereas 20% reported it as “low to very low” in May.  

Obstacles  

Buyers 

Typically, REALTORS® observe increased activity at this time of year, but many report that buyer engagement has been relatively flat this month. Economic worries currently affecting the market have prevented some clients from participating in the buying process. The survey revealed that 24% of REALTORS® identified limited housing options as a significant obstacle for their clients. Around 14% cited high mortgage rates as the main challenge, while about 7% noted that clients find it hard to save for a down payment. Several respondents also mentioned that their buyer clients had difficulty selling their initial home, which delayed their ability to make a new purchase in May.

Sellers 

About 15% of the survey respondents reported that their seller clients hesitated to sell in May because of low interest rates on their current homes. Another 13% faced difficulties finding suitable properties due to limited inventory. Nearly 10% identified rising home prices as the main barrier to selling. Many REALTORS® mentioned that there are few buyers in their local markets willing to match their seller clients’ listing prices.    

Pending Sales Activity 

In April, the state recorded 10,579 pending sales, a 6.19% increase from the previous year, adding 617 more pending sales. Although most pending sales close successfully, delays and failures can happen for various reasons. The survey recorded that 200 real estate agents in Virginia had at least one seller client with a purchase agreement, and 47 of these deals did not close as expected. 

Respondents to the May survey identified the main reasons for contract failures. Approximately 58% attributed the issues to inspection problems, around 15% said their clients couldn’t sell their homes in time, and nearly 28% mentioned delays in mortgage approval. Additionally, nearly 9% faced title issues, and 10% stated that the appraisal came in too low.  

Reasons For Selling

Our survey identified the main reasons, from REALTORS®’ perspectives, why sellers are listing homes in Virginia. About 31% of REALTORS® reported that their clients are relocating out of state in May, while 12% said their clients are contemplating moves within Virginia. Additionally, 23% noted clients wanting to downsize locally, and 12% reported clients seeking larger homes nearby. Lastly, roughly 6% of agents mentioned their clients are selling a second property this month.  

Market Outlook 

Results From Virginia REALTORS® Confidence Survey 

Looming conomic uncertainty has steered REALTORS® confidence on future buyer activity. This index measures REALTORS®’ expectations for market activity in the coming three months, falling to 46 in May from 60 in April. About 19% of respondents anticipate more buyer activity in their local markets during this period, while 28% expect a sharp decline. 

The Seller Activity Outlook Index in May (3-Month Outlook) declined to 45, marking a nine-point decrease from a month ago. About 9% of Virginia REALTORS® expect seller activity to increase in the next three months, while 20% anticipate a decline from June to August. Additionally, 31% of surveyed REALTORS® in Virginia expect home prices to rise over the same period. About 36% believe prices will remain stable, and 26% 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.