CAAR reports another stagnant quarter for area’s real estate market

The parallel trends of reduced home sales and higher prices continue as reported this week by the Charlottesville Area Association of Realtors.

In the six localities tracked by CAAR, there were a total of 1,087 sales in 2025’s second quarter. That’s 13 fewer than the same period in 2024.

The median sales price across the region is $485,000, an increase of $25,000 over the equivalent time in 2024. However, the median price for sales of new construction fell eight percent from $514,057 in 2025 to $471,610 for April, May, and June.

“Although prices are higher than last year, sales have dipped overall in the region,” reads a section of the latest quarterly report. “Homes are selling more quickly than they were a year ago, indicating buyers are still active in the market.”

In 2021, a total of 1,545 homes sold in the second quarter.

When you break down sales by jurisdiction, home sales were up in 11 percent in Charlottesville, 15 percent in Greene County, and 16 percent in Nelson County, but down four percent in Albemarle County, two percent in Fluvanna County, and 12 percent in Louisa County.

The median sales price declined in Charlottesville by two percent while they increased in the other five localities. Albemarle’s median increased eight percent from $533,750 to $575,000 and Louisa County’s median went up 11 percent from $399,900 to $445,000.

More homes are on the market with a total of 1,034 active listings, up 32 percent from the 786 from the year before.

There are also more homes under construction.

“A total of 606 building permits have been issued so far this year through May in the Charlottesville Metro Area, a 12 percent increase,” reads the CAAR report. “Single-family permitting is 10 percent higher than last year, while multi-family permitting is outpacing 2024 levels through May by 18 percent.”

Rates for a 30-year mortgage are about the same as last year at 6.77 percent. Four years ago rates hovered above two percent and have gradually increased as the Federal Reserve took steps to fight inflation.

There were 26 home sales in excess of $2 million compared to 20 in the 2nd quarter of 2024.

For more details on each locality, take a look at the CAAR report. What are your insights?

Before you go: This story was first posted in the August 4, 2025 edition of Charlottesville Community Engagement and then published here on August 6. I also wrote a similar version of this story for C-Ville Weekly.