Market Activity Keeps Falling for Reasons Beyond the Current Headlines, According to REALTORS^®

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 October 29th and November 5th, 2025, and reflects housing market conditions in Virginia in October 2025. A total of 1,011 Virginia REALTORS^® members responded to the survey, including 718 who participated in a home sales transaction in the past month.

Current Market Conditions

Buyers

Results From Virginia REALTORS^® Confidence Survey

In October, REALTORS^® experienced a decline in buyer activity compared to the previous month. The Buyer Activity Index dropped to 26 from 35 in September. About 6% of respondents rated buyer activity in their local markets as “high” or “very high,” while 53% viewed it as “low” or “very low.”

The survey shows that 26% of respondents reported their latest transaction involved a first-time home buyer, down from 32% in September. About 20% of REALTORS^® participated in all-cash deals in October, which is a five percentage point increase from the previous month. Around 13% of REALTORS^® handled transactions for non-primary residences, such as rentals, second homes, or vacation properties, reflecting a 5% decline from the month prior.

In October, listings averaged 1.9 offers before closing, according to REALTORS^®, an increase from 1.2 offers in September. About 20% of REALTORS^® reported that their clients received offers above the listing price this month, down from 25% in September.

Sellers

Seller activity decreased again in October. The Seller Activity Index fell to 38 from 42. About 9% of REALTORS^® reported that seller activity in their area was “high to very high,” while 32% characterized it as “low to very low.”

Obstacles

Buyers

Buyer activity has declined because of ongoing economic issues, which discourage home purchases and delay closings. Many clients encounter various obstacles preventing them from closing, with certain factors being more prominent. In October, approximately 21% of REALTORS^® pointed to limited housing options in Virginia as a major obstacle for their clients. About 14% of agents highlighted high mortgage rates as the primary challenge that month. Additionally, roughly 9% of REALTORS^® mentioned their clients find it difficult to save enough for a down payment.

Results From Virginia REALTORS^® Confidence Survey

Sellers

Many agents observed that a combination of these obstacles was hindering their clients in October. Nearly 12% of REALTORS^® in Virginia indicated that their seller clients were hesitant to sell because of the low interest rates on their current homes. About 10% noted that their clients faced challenges in finding suitable properties due to limited market inventory. Around 12% identified rising home prices as the main obstacle for clients selling their homes.

Results From Virginia REALTORS^® Confidence Survey

Pending Sales Activity

In September, Virginia had 8,662 pending sales, an increase of 545 from the previous year, up 6.7%. While most pending sales close successfully, various factors can disrupt transactions. The survey revealed that 578 Virginia real estate agents had at least one seller client with a purchase agreement; among these, 129 deals failed to close as planned.

The October survey revealed the reasons behind some pending sales falling through. About 37% attributed contract failures to inspection issues. Around 9% cited low appraisals, and nearly 25% said buyers failed to get mortgage approval in time. An additional 23% reported job losses or financial hardships impacting mortgage approval. Approximately 20% mentioned that their clients’ previous homes took too long to sell, while 11% identified major title issues as barriers to closing.

Reasons For Selling

Results From Virginia REALTORS^® Confidence Survey

We focused on identifying the primary reasons for home listings in Virginia. In October, survey results revealed that around 20% of REALTORS^® reported that their seller clients were moving out of Virginia. Nearly 17% noted that their clients plan to relocate within the state. Another 18% said clients are looking to downsize locally, while 16% mentioned clients seeking larger homes nearby. Lastly, about 10% of agents observed that their clients were selling a second property this month.

Current Government Shutdown

Economic uncertainty has increased due to the extended government shutdown. Most REALTORS^® (66%) reported no noticeable impacts on their clients from the government shutdown. However, 16% experienced closing delays, another 16% faced issues with mortgage approvals, and 4.2% experienced challenges related to flood insurance. Although many clients remain unaffected so far, government shutdowns can create uncertainty in the housing market by slowing down federal procedures, causing delays in loan verification, disrupting flood insurance issuance, and affecting consumer confidence. These disruptions may temporarily halt transactions, extend processing times, and increase stress for both buyers and sellers.

Market Outlook

Results From Virginia REALTORS^® Confidence Survey

The outlook for future buyer activity decreased from a month ago. This index measures REALTORS^®’ expectations for market performance over the next three months. In October, the three-month buyer activity index decreased to 41 from 45 in September. About 13% of respondents expect a rise in buyer activity in their local markets over the next three months, while 32% anticipate a decline.

The Seller Activity Index (3-Month Outlook) in October remained at 46, unchanged from a month ago. About 15% of Virginia REALTORS^® believe seller activity will increase over the next three months, while 22% expect a decrease from November to January.

Lastly, 23% of surveyed Virginia REALTORS^® anticipate home prices to rise in the coming three months. Around 25% think prices will stay stable for the next three months, and 44% predict a decline.

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 +/- 3.48%.

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.