The Virginia housing market in February 2025 presents a complex landscape characterized by rising prices and declining sales activity. The Median Sales Price has increased to $443,600, reflecting a year-over-year (YoY) growth of 4.4%. This upward trend in sales prices is accompanied by a more significant rise in the Median List Price, which stands at $477,700, marking a 7.3% increase YoY. These figures suggest a strong demand for housing, despite the challenges in sales volume.

Price Per Square Foot metrics also indicate an upward trajectory. The median Price Per Square Foot has risen to $239, a 3.7% increase YoY, while the Median List Price per square foot has climbed to $247, up by 6.7% YoY. These increases highlight the competitive nature of the market, with sellers capitalizing on the demand to list properties at higher prices.

However, the number of Homes Sold has decreased significantly, with 6,345 Homes Sold, representing a 10.6% decline YoY. Pending Sales have also dropped to 8,339, a 13.7% decrease YoY. This reduction in sales activity is mirrored by a 9.7% decline in New Listings, which total 8,546. The decrease in both sales and New Listings suggests a potential cooling in market activity, possibly influenced by economic factors or buyer hesitation.

Inventory levels have increased to 15,209, a 7.3% rise YoY, contributing to a higher Months of Supply, now at 2.40 months, which is a substantial 40% increase YoY. This growth in inventory and supply indicates that while demand remains strong, the market is gradually balancing, providing more options for prospective buyers.

The Median Days on Market have slightly increased to 38 days, a 3% rise YoY, suggesting that homes are taking marginally longer to sell. The average sale to list ratio remains stable at 99.5%, with no significant change YoY, indicating that homes are generally selling close to their asking prices.

The percentage of Homes Sold above list price has decreased slightly to 34.2%, a 0.9% drop YoY, while the rate of Price Drops has increased to 21.2%, up by 2.4% YoY. These trends suggest that while sellers are still achieving favorable prices, there is a growing need for price adjustments to attract buyers.

Finally, the percentage of homes going off the market within two weeks has decreased to 49.3%, a 2.5% decline YoY. This reduction may reflect a more cautious buyer approach or increased competition among listings.

Overall, the Virginia housing market in February 2025 is characterized by rising prices and a decline in sales activity, with increased inventory and supply suggesting a shift towards a more balanced market. While sellers continue to benefit from higher prices, the decrease in sales and New Listings indicates potential challenges ahead as the market adjusts to changing conditions.