After several years of high mortgage rates and cautious buyers, the Central Virginia housing market is quietly starting to gain momentum. Sellers are reappearing, buyers are re-engaging, and for the first time in years, activity is beginning to pick up in Richmond, Chesterfield, Henrico, and surrounding areas.

It’s not a surge—but it’s a shift that could set the stage for a stronger, more balanced market in 2026. Here’s what’s driving the comeback.

1. Mortgage Rates Are Trending Down

Mortgage rates fluctuate constantly, but the larger trend matters most. This year, rates have been gradually declining, giving buyers more purchasing power.

You can see in the chart below how rates have shifted over the past 12 months, providing buyers with better affordability than earlier this year. According to Freddie Mac, Sam Khater, Chief Economist, notes:

"On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving."

For buyers in Central Virginia, this means lower borrowing costs and the ability to afford more home for your money. Data from Redfin shows that a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than last year. This increase in affordability is already helping to drive renewed market activity.

2. More Homeowners Are Listing Their Homes

For the past few years, many homeowners stayed put because of the “lock-in effect” from their low mortgage rates. But as rates begin to moderate, more sellers are making the move. Life changes such as job transfers, growing families, and retirement are driving homeowners to list, opening up inventory.

A bar chart of listing growth shows the increase in homes for sale across Central Virginia, approaching levels not seen in six years. More inventory means more options for buyers and a healthier market overall. The growth in available inventory is a positive signal for both buyers and sellers in Richmond, Chesterfield, and Henrico.

3. Buyers Are Re-Entering the Market

It’s not just sellers making moves. With more inventory and improved affordability, buyers are stepping back into the market. The Mortgage Bankers Association (MBA) reports that purchase applications are rising compared to last year, signaling renewed demand.

The next chart shows purchase application trends over the past 12 months, highlighting the steady increase in buyer activity. Economists from Fannie Mae, the MBA, and the National Association of Realtors all forecast moderate sales growth going into 2026. While this recovery won’t happen overnight, it marks the start of steady improvement and is a promising sign for Central Virginia real estate.

Bottom Line

After slower-than-normal market activity, Central Virginia is beginning to turn a corner. Declining mortgage rates, more listings, and growing buyer activity all point to a healthier, more active housing market heading into 2026.

If you’re thinking about buying or selling in Richmond, Chesterfield, Henrico, or the surrounding areas, now is a great time to start planning your next move. The Don Reid Properties team can provide local market insights, pricing strategies, and professional marketing to help you achieve your real estate goals.

Call us today at (804) 929-4475 or schedule a free consultation here