T
he Charlottesville real estate market has been stagnant in the first quarter of 2025, with a general malaise affecting buyer confidence. According to Josh White, president of the Charlottesville Area Association of Realtors, "buyer confidence is stretched thin" due to uncertainty surrounding President Trump's economic policies.
In the first quarter, 695 residences were sold across Charlottesville and its outer counties, only one more than in the same period last year. The city of Charlottesville proper saw a decline of 14 sales, while Albemarle County had 13 fewer and Louisa County had 12 fewer.
The reluctance to engage with the housing market is attributed to Trump's economic policies, including tariffs on imports and a proposed cut to the Department of Housing and Urban Development budget. The current national average rate on a 30-year mortgage, at 6.81%, may also be contributing to the sluggish quarter.
The median sales price across the Charlottesville market increased by $15,000 year over year in the first quarter to reach $450,000. However, prices in the city of Charlottesville actually decreased from $482,000 in the first quarter of 2024 to $475,000.
Interestingly, houses priced for less than $250,000 spent more than double the amount of time on the market in the first quarter of 2025 over last year. The cost of building materials and construction continues to rise due to tariffs and retaliatory measures, affecting new construction sales.
Despite these challenges, White notes that the Charlottesville area supports a large population of high-income earners, thanks to local employers like the University of Virginia and its associated health system. However, should Trump's cost-cutting hit these employers more than it already has, it could roil the market considerably.
A 30% boost in housing inventory over last year is a positive development, with 203 additional listings for 875 available properties by the quarter's end. While this hasn't resulted in lower housing costs just yet, White believes that prices are "softening" and that more inventory will help the market in the long run.
