My Econ 201 professor might have a hard time explaining the May 2025 Virginia Home Sales Report from Virginia REALTORS® – which has home sales declining for the fourth month in a row, and yet, sale prices are on the rise.
The report had 10,649 closed sales across the commonwealth in May, a 0.6 percent decrease from May 2024, but the median sales price was $440,000 in May, up $15,000 since last year, reflecting a 3.5 percent percent increase.
Nearly four out of five local markets in Virginia had a higher median sales price compared to last May (78 percent). Higher prices pushed total sold volume up by 1.3 percent, even as the number of sales declined.
“While buyers now have more options than they did a year ago, they’re still facing higher price points in most parts of the state,” Virginia REALTORS® 2025 President Lorraine Arora said. “Affordability remains a key concern, especially for first-time buyers navigating today’s mortgage rate environment.”
Inventory growth continued accelerating last month. There were 23,137 active listings on the market in Virginia at the end of May. This represents 5,425 more listings than last year, an increase of 30.6 percent.
Again, this doesn’t seem to square.
In May, the median days on market rose slightly, to 10 days, which is three days longer than the median days on market in May 2024.
By historic standards, though, homes are continuing to sell relatively quickly across Virginia.
Affordability challenges and mixed market signals continue keeping some would-be buyers on the sidelines.
“Economic uncertainty and fluctuations in the labor market are making some buyers hesitant to enter the housing market,” said Virginia REALTORS® Chief Economist Ryan Price. “With mortgage rates still hovering near 7 percent, many Virginians are waiting for more stability before making a move.”
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Chris Graham
