Richmond, VA Housing Market Report

The Richmond, VA housing market as of December 2025 is transitioning into a more balanced state, though it remains slightly tilted in favor of sellers due to a perfect sale-to-list ratio of 1. With a median home value of $357,214, the market has seen a modest year-over-year increase of 0.62%. The most notable shift is the rise in active inventory, which has grown by nearly 7% over the past year to 2,493 units. This increase in choice for buyers, coupled with homes sitting on the market for an average of 44 days—eight days longer than last year—suggests that the frantic bidding wars of previous years have largely subsided in favor of a more deliberate pace.

Price trends over the last six months indicate a steady recovery and upward momentum following a brief dip in late summer. After hitting a low of $352,860 in August 2025, values have climbed consistently for four consecutive months. This incremental growth reflects a resilient local economy and sustained demand for the Richmond metro area. Meanwhile, the rental market is showing stronger inflationary pressure than the for-sale sector, with median rents rising 3.5% year-over-year to $1,566. This divergence suggests that while home price appreciation is cooling, the cost of housing remains a significant factor for residents, potentially driving more long-term renters toward homeownership as a means of stabilizing their monthly costs.

Looking ahead, both buyers and sellers should prepare for a market defined by stability rather than volatility. For buyers, the increase in days on market and inventory provides a rare window of opportunity to negotiate on repairs or closing costs without the immediate threat of losing out to a cash offer. For sellers, the data serves as a reminder that pricing strategy is paramount; with a sale-to-list ratio of exactly 1, homes are selling for their asking price, but they are no longer commanding the massive premiums seen in previous cycles. Success in the 2026 Richmond market will require realistic expectations and a focus on property condition to stand out among the growing competition.