Local Market Trends From February 2025

The New River Valley housing market saw a sharp drop in new listings this February, making it even tougher for buyers to find homes. Residential listings fell by 31.5% compared to last year, and land listings dropped 14.6%. This means fewer options for buyers, but also a more competitive environment for sellers.

At the same time, pending sales were down 27.4% for homes and 4.5% for land, showing that buyer activity has slowed. Higher interest rates and affordability concerns are making some buyers more cautious. However, home prices have held steady, with the median residential sale price rising 0.3% to $278,900. Land prices, however, saw a huge spike, up 48.9% to $65,644.

Homes are selling slightly faster, with the average time on market dropping by 10.6% for residential properties. However, land is taking much longer to sell, with market time increasing by 62.7%.

Inventory remains tight, with the number of homes for sale down 3.2% from last year, and the supply of available homes shrinking 6.9%. This keeps sellers in a strong position, as demand still outweighs supply.

Looking at the bigger picture, the national market is seeing similar trends. Home sales across the U.S. fell 4.9% from the previous month, and while they are slightly higher than last year, affordability remains a struggle due to rising prices and interest rates. The median U.S. home price hit $396,900, up 4.8% year-over-year.

For buyers in the New River Valley, competition is still a factor, but fewer offers are being made compared to last year, which could mean some opportunities. For sellers, the low inventory continues to work in their favor, as well-priced homes are still moving quickly.

Source Inspiration: NRVAR Multiple Listing Service