The Charlottesville Area Association of REALTORS® released the Q4 2024 Housing Market Report, highlighting key trends in sales, prices, inventory, and mortgage rates. If you’re a homebuyer, seller, or investor, understanding these market shifts can help you make informed decisions in 2025.
Key Takeaways from the Q4 2024 CAAR Housing Market Report
CAAR Housing Market Report Takeaways
1. Home Sales Are on the Rise
Charlottesville and surrounding areas experienced an increase in home sales by 8% compared to Q4 2023, with 879 total sales in the region.
- Albemarle County led the growth with 381 home sales (+9%).
- Charlottesville City followed closely with 85 home sales (+10%).
- Fluvanna County saw the biggest increase at +23% in sales growth.
- Louisa County was the only area with a decline (-6%).
- Nelson County had 89 sales, up 9% from a year ago.
2. Home Prices Continue to Climb
The median sales price in the CAAR region rose by 9%, reaching $475,000.
- Charlottesville saw an 11% price increase to $495,000.
- Albemarle County remained the most expensive, with a median price of $535,000 (+2%).
- Louisa County saw the biggest price surge, increasing 19% to $452,000.
- Nelson County’s median sales price is $460,000, 10% higher than the previous year.
3. Inventory Levels Are Expanding Slightly
While inventory is still relatively low, the number of active listings increased by 2% to 689 homes on the market at the end of Q4.
- The region now has 2.3 months of supply, slightly up from last year’s 2.2 months.
- More new homes were listed in Fluvanna County, while Greene County saw a decline in available homes.
4. Mortgage Rates Remain High
The average 30-year fixed mortgage rate hit 7.04% in January 2025, compared to 6.60% last year.
- Higher rates are impacting affordability but have not slowed down demand significantly.
- Buyers are adjusting by exploring different loan programs and price points.
What the Market Update Means for Buyers and Sellers in 2025
For Buyers:
- Expect continued competition in the market, especially for well-priced homes.
- Higher mortgage rates may impact affordability, so exploring different loan options is key.
- Consider expanding your search to areas like Fluvanna County, where home prices are still relatively lower.
If you’re a first-time homebuyer, check out our Charlottesville Home Buying Guide for expert tips.
For Sellers:
- It’s still a seller’s market, with demand outpacing inventory.
- Pricing strategically is important to attract serious buyers amid rising interest rates.
- Homes are spending moderately more time on the market (median 14 days), so staging and marketing remain crucial.
2025 Market Predictions
- Steady price growth: While interest rates remain high, limited inventory will keep pushing home prices upward.
- Slight inventory increase: More homeowners may list their properties, leading to slightly more balance in supply.
- Continued demand in suburban and rural areas: Buyers will continue seeking more affordable alternatives outside the city core.
Should You Buy or Sell Your Property in 2025?
If you’re thinking about buying a home, acting sooner may be beneficial before prices climb further. Sellers should take advantage of strong buyer demand while ensuring they price competitively to attract interest. I can help guide you through every detail of buying or selling a home this year, so you can be more confident during the process.
Looking to buy or sell in Charlottesville? Work with the trusted local expert at Matthias John Realty to navigate the market with confidence. Call 434.906.4630 or fill out a contact form.
Frequently Asked Questions (FAQ)
1. Is Charlottesville a good place to buy a home in 2025?
Yes! Charlottesville continues to see strong demand, rising home values, and a competitive market. The area offers a great mix of city amenities and suburban appeal.
2. How are mortgage rates affecting the housing market?
With rates at 7.04% reported in the third week of January 2025, affordability may be a challenge for some, but demand remains strong. Buyers are exploring different financing options, and sellers should be strategic with pricing.
3. What are the best neighborhoods in Charlottesville for homebuyers?
Some of the most sought-after areas include Albemarle County, Belmont, and North Downtown. Each offers unique charm, amenities, and investment potential. Click here for more information about the best neighborhoods to buy right now.
4. Should I sell my home in Virginia now or wait?
If you’re considering selling, now is still a great time due to low inventory and strong buyer demand. Pricing competitively and staging well can help maximize your sale price.
5. What’s the outlook for Charlottesville home prices in 2025?
Experts predict continued price growth, though at a more moderate pace. With demand still outpacing supply, prices are expected to stay strong.
Matthias John is a licensed REALTOR® serving Central Virginia since 2014. With dual Master’s degrees in Public Policy & Governance and Political Science & Linguistics, he brings analytical expertise to every real estate transaction.
Originally from Germany and multilingual, Matthias combines international perspective with deep local knowledge of the Charlottesville market. His background in public policy and sales enables him to navigate complex negotiations and regulatory requirements with precision.
Matthias specializes in helping both first-time homebuyers and property investors find opportunities that match their specific needs. His data-driven approach and commitment to transparent communication have earned him recognition among clients for his integrity and thoroughness.
As a longtime resident of Central Virginia, Matthias leverages his community connections and market insights to create customized marketing strategies for sellers and targeted property searches for buyers.
Member: National Association of REALTORS®, Virginia Association of REALTORS®