The Virginia housing market in January 2025 presents a complex landscape characterized by contrasting trends in pricing, sales, and inventory. The Median Sales Price has decreased by 4.4% year-over-year, settling at $425,600. This decline contrasts with the Median List Price, which has risen by 9.4% to $449,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics further illustrate this divergence. The median Price Per Square Foot has increased by 6.8% to $233, while the Median List Price per square foot has risen by 6.5% to $242. This suggests that while sellers are optimistic about pricing, buyers are negotiating lower final sale prices.

Sales activity shows a slight increase, with Homes Sold rising by 1.2% year-over-year to 6,128 units. However, Pending Sales have decreased significantly by 12.5%, indicating a potential slowdown in future transactions. New Listings have increased by 3.1% to 7,963, contributing to a 7.2% rise in inventory, now totaling 14,779 homes. This increase in supply is reflected in the Months of Supply, which has grown by 10% to 2.4 months, suggesting a shift towards a more balanced market.

The Median Days on Market remain unchanged at 41 days, indicating stable demand despite the fluctuations in other metrics. The average sale to list ratio has slightly improved by 0.2% to 99.1%, while the percentage of Homes Sold above list price has increased by 0.5% to 29.3%. These figures suggest that while buyers are negotiating lower prices, competitive bidding still occurs for certain properties.

Price Drops have increased by 2.7% to 23.3%, reflecting sellers' adjustments to align with market conditions. Meanwhile, the percentage of homes going off-market within two weeks has decreased by 1.4% to 41.3%, indicating a slight cooling in the speed of transactions.

Overall, the Virginia housing market in January 2025 is characterized by a decline in sales prices amidst rising list prices and inventory. While sales activity shows resilience, the decrease in Pending Sales and increase in Price Drops suggest potential challenges ahead. Buyers and sellers alike must navigate this evolving landscape with careful consideration of market dynamics.