Virginia home sales fall as inventory climbs and mortgage rates rise

Home sales across Virginia dropped in September 2026 as rising mortgage rates weighed on the housing market, Augusta Free Press and Royal Examiner reported. According to data from the Virginia Association of REALTORS®, transactions fell by 4.2 percent compared to the same period in 2025, while active inventory rose by 20 percent. [1][2]

Augusta Free Press reported that 8,410 homes were sold across the state during September, which represents 373 fewer transactions than in September 2025. Pending sales activity experienced a sharper pull back, declining 14.3 percent year over year. Ryan Price, the chief economist for the Virginia Association of REALTORS®, identified elevated mortgage borrowing costs as the primary cause of the market slowdown. [1]

The cooling market conditions follow historical periods of real estate volatility in the United States, including the collapse of the national housing market in the late 2000s when home prices fell nationwide. The resulting credit contraction ultimately triggered the broader economic downturn known as the Great Recession. [3]

Real estate agents working in local markets throughout Virginia have confirmed that the decline in transactions and the increase in unsold homes are shifting market dynamics toward buyers. [1]