WILLIAMSBURG — Home sales activity in Virginia remained subdued last month, with sales levels declining for the fourth month in a row, according to the May 2025 Virginia Home Sales Report released by Virginia REALTORS.
In total, there were 10,649 closed sales across the commonwealth in May, 66 fewer sales than a year ago — a 0.6% decrease, according to the largest trade association in Virginia.
Despite lower sales levels, Virginia REALTORS also reports that home prices continued to rise in most local markets. Virginia’s median sales price was $440,000 in May, up $15,000 since last year, reflecting a 3.5% increase, and nearly four out of five local markets in Virginia had a higher median sales price compared to last May, it added. Higher prices pushed total sold volume up by 1.3%, 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,” says Virginia REALTORS 2025 President Lorraine Arora. “Affordability remains a key concern — especially for first-time buyers navigating today’s mortgage rate environment.”
Inventory growth continued accelerating last month. The association’s data says 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%.
In May, the median days on market rose slightly, to ten days, which is three days longer than the median days on market in May 2024, it added. However, by historic standards, homes are continuing to sell relatively quickly across Virginia.
Virginia REALTORS said 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 Chief Economist Ryan Price. “With mortgage rates still hovering near 7%, many Virginians are waiting for more stability before making a move.”
To view the full report, visit the Virginia REALTORS website.
