NRV Residential Trends: Jan 2024 to Jan 2025

The residential housing market in the New River Valley is showing signs of a slowdown in sales activity, but home prices continue to rise. New listings fell by 4.3% year-over-year, meaning fewer homes are coming onto the market. Despite this, pending sales saw a modest increase of 1.6%, indicating that demand is still present, though not as strong as in previous months. However, closed sales dropped by 8.0%, suggesting that fewer transactions are making it to the finish line.

One of the most noticeable shifts is how long homes are staying on the market. The average days on market jumped 40%, from 40 days in January 2024 to 56 days in January 2025. This means homes are taking longer to sell, a sign that buyers may be more hesitant or that affordability constraints are slowing down purchases. Speaking of affordability, the Housing Affordability Index dropped by 12.7%, showing that buying a home is becoming more challenging for the average buyer.

Despite slower sales, prices continue to rise. The median sales price jumped 12.1% over the past year, reaching $277,000, while the average sales price dipped slightly by 2.5% to $285,460. The fact that the median price is rising while the average price is declining suggests that higher-end homes aren’t selling as frequently, but mid-range and lower-end homes are still appreciating in value.

Sellers are still getting strong offers, as the percent of list price received increased to 99%, up from 97.2% a year ago. This indicates that while the market is slowing, sellers who price their homes correctly are still able to secure deals close to their asking price. However, inventory remains tight, with a slight 0.2% decline in available homes for sale compared to last year. The months’ supply of inventory also dipped by 3.6%, meaning the number of homes on the market relative to demand is still low, which is keeping prices elevated.

In summary, I'd say Homes are taking longer to sell, but prices continue to rise. Fewer homes are hitting the market, and completed sales are down. Affordability is becoming a growing issue for buyers. Sellers are still getting close to their asking price, despite a slowdown.