V
irginia REALTORS, representing over 35,000 realtors across the state, has released its 2025 Economic & Housing Market Forecast. The forecast outlines key trends and predictions for Virginia's economy and housing market.

    Job growth is expected to slow in 2025, with a net change of 1.2% (approximately 51,000 jobs) compared to 2024. While Virginia's unemployment rate remains lower than the national average, it is projected to rise from 2.8% in 2024 to 3.2% in 2025.

    Home sales are anticipated to increase by 9.8% year-over-year in 2025, driven by pent-up demand and a continued supply of active listings. "We're seeing a lot of pent-up demand in our housing market," says Virginia REALTORS Chief Economist Ryan Price. "With more options available and lower mortgage rates, we expect sales activity to pick up."

    The median home price is projected to rise 3.4% in 2025, with prices continuing to climb in most local markets despite a slower rate of growth. "The supply-demand imbalance remains a factor, putting upward pressure on home prices," notes Virginia REALTORS Deputy Chief Economist Sejal Naik.

    New housing starts are expected to increase by 2.6% in 2025, driven by single-family and townhome construction. Mortgage rates are projected to end 2024 in the low 6% range and drift down to 5.75% by the end of 2025, potentially alleviating affordability issues for some buyers and loosening the "lock-in effect" for homeowners who have delayed their next purchase due to high mortgage rates.