Slow 2025 Housing Market Ends on a High Note in Virginia

According to the December 2025 Virginia Home Sales Report released by the Virginia Association of REALTORS®, 2025 home sales activity ended on a strong note, in what had otherwise been a sluggish year in Virginia’s housing market.

In total, there were 8,482 homes sold throughout Virginia in December, a 7.3% increase from last December, representing an additional 575 sales. This is likely a reflection of buyers taking advantage of more listings on the market and the continued decline of mortgage rates, which were in the low 6% range for a 30-year fixed in December. “With mortgage rates settling into a more predictable range, we’re seeing early signs that the lock‑in effect is easing,” says Virginia REALTORS® 2026 President Curt Reichstetter. “That shift could open the door for more move‑up buyers and bring fresh momentum into the market.”

While home prices continue their upward trajectory in most regions of Virginia, the pace of growth has slowed significantly. In December, Virginia’s median sales price was $415,000, up $1,510 from last year, an increase of less than 1%. The slowing pace is also reflected in the statewide sold‑to‑list price ratio, which was 99.0%, down from 99.4% a year ago and 99.2% last month.

Virginia saw 6,745 new listings hit the market in December, a modest 1.8% increase from last year. While this month’s change was relatively small, 2025 as a whole brought notable growth. Statewide, new listings rose by more than 14,000 compared to 2024, a 10.7% jump and the largest annual increase in more than a decade. In total, there were 19,631 active listings on the market at the end of December—2,450 more than a year ago, a 14.3% gain that brought inventory back to its highest December level since 2019.

Homes are taking longer to sell as inventory expands. The median days on market in December was 24 days, five days longer than last year—a reflection of more listings on the market. From an annual perspective, the statewide median days on market in 2025 was 15 days, three days longer than in 2024. “Recent trends—like a lower sold‑to‑list ratio and rising days on market—show Virginia continuing to move toward a more balanced market,” says Virginia REALTORS® Chief Economist Ryan Price. “Even so, most localities still remain in ‘sellers’ market’ territory.”

Read the full December 2025 Virginia Home Sales Report for detailed market trends and insights.

About VAR

The Virginia Association of REALTORS® is the largest trade association in Virginia, representing nearly 34,000 REALTORS® engaged in residential and commercial real estate. The association serves as an advocate for homeownership and represents the interests of property owners in the Commonwealth of Virginia. For more information, visit www.virginiarealtors.org or follow the Virginia Association of REALTORS® on Facebook and LinkedIn.