May - NRV Prices, Closing and Shifting Landscape

The New River Valley market in May 2025 showed some interesting moves. Prices are climbing, inventory is building, and yet, actual sales are pulling back slightly in some areas. It’s a mix of momentum and hesitation—typical of a market trying to find its next gear.

Let’s start with what stood out: the median sales price for residential homes shot up to $340,000, a hefty 11.5% jump from last year. That’s the biggest year-over-year increase in months. Average sales prices also climbed, hitting over $375,000. Land prices saw even more dramatic action, with median land prices skyrocketing more than 70% to $121,000. It’s clear buyers are still willing to pay—but they may be taking a little longer to commit.

Pending residential sales were strong, up 19.4%, suggesting buyer interest is there. But closed sales dipped just slightly, down 2% from last May. For land, the story was tougher: pending sales fell over 34%, and closed sales dropped nearly 46%. Despite that, land moved faster—days on market dropped from 115 to just 22. That's a wild 81% drop in time on the market, likely thanks to a few quick, high-value deals shifting the average.

Inventory for homes rose 6.5%, giving buyers more to choose from. The months supply of inventory ticked up slightly to 3.4 months, a sign the market is leaning just a bit more balanced. In terms of what sellers are getting, most homes sold for nearly full asking price—99.6% of list on average.

Now here’s the rub: affordability continues to shrink. The housing affordability index dropped 9.1% for residential, hitting a score of 90. That basically means the average household has only 90% of the income needed to afford a median-priced home under current mortgage rates. It's not panic-level, but it’s not great either.

In summary, I’d say May was a month of contrasts. Buyers are clearly showing interest, especially with pending contracts up. But affordability is tightening, and the market's price point keeps marching upward. If this pace continues, expect sellers to stay confident—while buyers will need to get a little more creative or decisive.

Source Inspiration: Realtor.com