Norfolk, VA Housing Market Report

The Norfolk housing market entering December 2025 is characterized by a transition toward a more balanced environment, though it remains slightly tilted in favor of sellers due to a perfect sale-to-list ratio of 1. While the median home value has reached $299,369, the year-over-year growth of 0.22% suggests that the rapid appreciation seen in previous years has significantly cooled. The most notable shift is the 8.08% increase in active inventory, which now stands at 5,749 units. This influx of available homes, combined with an average of 61 days on market, indicates that buyers have more leverage and time to conduct due diligence than they did a year ago.

Price trends over the last six months show a remarkably steady and incremental climb, moving from $296,931 in July to $299,369 in December. This consistent upward trajectory, despite higher inventory levels, suggests a resilient demand floor likely supported by the heavy military presence and stable employment sectors within the Virginia Beach-Norfolk-Newport News metro area. However, the rental market is experiencing much more aggressive growth, with median rents rising 5.47% year-over-year to $1,640. This divergence between flat home prices and rising rents may push more long-term residents toward homeownership to lock in fixed housing costs.

Looking ahead, the Norfolk market appears to be entering a period of price stabilization. For sellers, the data suggests that homes are still selling for their full asking price, but the seven-day increase in time on market means patience and realistic pricing are essential. For buyers, the current conditions offer a rare window of opportunity where inventory is growing and price competition has moderated. As long as the sale-to-list ratio remains at parity, buyers should expect to pay fair market value but may find more success in negotiating repairs or closing cost credits than in previous cycles.