Virginia housing market sees 29.7% rise in active listings amid economic concerns

The Senate Finance and Appropriations Committee of Virginia convened on May 20, 2025, to discuss key economic indicators and their implications for the state's housing market. A significant focus of the meeting was the current state of the housing market, particularly in Northern Virginia, where active listings have surged by 63% compared to the previous year. Statewide, active listings have increased by 29.7%, suggesting a growing number of homes are being put on the market while fewer buyers are making purchases.

Committee members expressed concerns regarding the potential impact of rising inventory on housing statistics, especially in light of job losses among federal contractors in the region. One member highlighted that while there is an increase in listings, the demand for housing remains strong, with new housing starts showing an uptick for the first time in several months. In April, the number of homes for sale in Virginia rose by 19%, and median prices continue to climb, indicating that the market is still active despite the increased inventory.

The administration's perspective, as shared during the meeting, emphasized that while there are signs of a shifting market, the real estate sector does not currently exhibit significant problems. The ongoing demand for housing suggests that the market is resilient, although potential layoffs could eventually affect buyer behavior. The committee acknowledged the importance of monitoring these trends closely as they develop.

Overall, the discussions underscored a complex housing landscape in Virginia, characterized by rising inventory levels and persistent demand, with economic factors that could influence future market conditions.