CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Numbers from the Q1 Housing Market Report released Monday by the Charlottesville Area Association of Realtors (CAAR) show different levels of activity for home buyers across central Virginia. But Amanda Spigone, president of CAAR, believes the region’s market may be normalizing.

“The market is shifting sort of from ultra-competitive to more balanced,” Spigone told Cville Right No. “So, buyers have a little bit more time. It’s not as frenzied as it has been in the past.”

As more inventory has become available with supply steadily increasing since a sharp drop-off between 2020 and 2021, Spigone said buyers face slightly less pressure and hold more bargaining power.

“There’s definitely more negotiation going on in the market,” she said.  “The ‘name your terms’ kind of market has gone away.”

Home sales decreased slightly in Q1 2026 compared to 2025 according to the CAAR report, but numbers differed greatly across different local markets. The City of Charlottesville and Greene County saw sharp increases in sales of 33% and 37%, respectively.

“I think one of the things to account for at Albemarle County and Fluvanna and Greene is there’s been new construction and townhome sales,” Spigone said. She added that townhomes can offer an entry-level opportunity for many first-time buyers.

Conversely, sales in Nelson County decreased sharply in Q1 by nearly 31% compared to 2025, a figure Spigone mentioned could be due to the prevalence of second homes in that market. 

Spigone identified two particular factors that influenced the housing market in Q1: interest rates and weather.

“I think interest rates are the biggest driver,” she said, “and small changes impact the demand.”

She added that while the rates can be difficult to predict, a decrease in interest rates may be one of the largest drivers of activity.

“I think a dip in rates could quickly increase activity,” she said.

The recent winter weather that affected Central Virginia in January also affected home buyers’ ability to participate in the market.

“I think that kind of stalled people, a little, being able to even get to homes when you couldn’t get out of your own driveway or your own neighborhood,” Spigone said.

As for the outlook for the spring and Q2, the CAAR report mentions a potential for an up-and-down market. While Spigone noted it could be a “choppy” market in the Q2 report, the region can still find balance if certain factors hold.

“I think demand will come in waves and it’s tied to rates and more inventory, [which] creates opportunities for people,” she said