Let's have a conversation, bring in some facts, and get to the bottom of where the real estate market is headed in Charlottesville and the surrounding areas for the rest of 2025.
Weather Was Bad!!
Before I get into the stats, I have to first talk about the weather that hit in January and February. If you didn't know, we had some major storms throughout America, and Charlottesville was not spared from these blizzards. School closures were so frequent that they had to add days to the school year. When kids were supposed to return to school after Christmas, they stayed home for another week! It was bad, and I will say that it contributed to home sales being lower in January and February. People were not out shopping.
But this last weekend—March 1st and 2nd—people were out! It was perfect weather for viewing homes, and I had several buyers doing home showings. It was a good weekend, and I see this trend continuing into the spring. Now, onto the stats!
March Market Stats
In Albemarle County and Charlottesville, we have had 407 homes listed for sale from January 1st to March 3rd. In comparison, last year we had 458 homes listed, and in 2023, we had 440. We are actually down on the number of homes listed this year, but we are up on the number of months of inventory at 3.77 months. So what does that mean?
It means that with high interest rates still in the high 6s, economic uncertainty, tariffs with Canada and Mexico, and federal workers being laid off, buyers are not in the same buying mood as they were in the last couple of years. Likewise, sellers are not as eager to sell. As I have always said, most sellers become buyers. This means that if people aren't selling, they don’t become buyers, and even with fewer listings this year, we have more months of inventory.
Homes sold in the last 30 days: 77
290 Active listings /77 = 3.77 Months of Inventory
This is the highest amount of inventory we have had in the last four years, which means we are catching up to 2019 levels but are still far from a normal market. In 2024, active listings were down 51% compared to 2019.
So, are home prices going to soften? I think so, in some areas of Central Virginia. However, if you own a home that is turnkey or in a very desirable location, you will still be able to sell your home for what it's worth, and it won’t sit for long. Even with only 407 homes listed, we still have buyers needing a place to live.
Sellers Need to Do More
I showed a couple of homes this weekend that, frankly, needed a lot of work, yet the seller was asking quite a bit for what they were offering. Sellers, you need to try harder! Honestly—pay for a cleaner, take out the trash, do anything to help sell your home. And if you’re not going to do that... well, then lower your price to reflect your lack of effort. Sorry, but it’s tough for a buyer to want your house when it’s not being loved by you.
