CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – The 2026 Q3 Housing Market Report was released Tuesday from the Charlottesville Area Association of Realtors (CAAR) and showed a relatively flat housing market compared to the third quarter in 2025. Across the CAAR region, closed sales were almost identical in the quarter, with 992 in 2026 compared to 990 in 2025.

CAAR President Amanda Spigone told Cville Right Now that while the sales numbers are similar, the market may be moving in favor of buyers.

“I think it’s shifting towards more of a balanced market,” Spigone said. “Inventory is rising and buyers have more options, and sellers need to be strategic when they’re pricing and listing their house.”

The rising inventory noted by Spigone is reflected in the nearly 33% increase in active listings for Q3 over 2025. The months of housing supply on the market for the area also saw an uptick compared to last year, and areas such as Albemarle, Nelson and Greene Counties all saw a more than 35% increase in listings.

Local real estate broker Michael Guthrie, President Emeritus of Howard Hanna Roy Wheeler Realty, said, however, that the dramatic increase in active listings can be a bit of a double-edged sword.

“The first one is that houses are staying on the market longer,” he said. “You know, properties being on the market for two, three, maybe even four months at a time whereas before, they’d go on the market and they’d sell within days.”

The median days on market in the 2026 Q3 report was 22, four days longer than in 2025. Guthrie also said more people put their houses on the market in the third quarter that may not have sold yet, leading to the increase.

Despite the flat sales number and rising inventory, the median sold price for homes increased 4.1% in the region this quarter, though Spigone explained higher prices does not necessarily mean fewer choices for buyers.

“For the past few years, we’ve just been dealing with a seller’s market — low inventory and lots of buyers in the market. And so, it was driving prices higher,” she said. “And right now while the prices are creeping up, there’s just more to choose from.”

While buyers may have greater choice in the market, interest rates can keep activity relatively stagnant.

“There’s just a smaller buyer market than there’s been before, and I think some of that is interest rate driven,” said Spigone. “I think buyers have kind of come to understand that interest rates aren’t going to be sub-five anytime in the near future.”

The reported mortgage rates were at 7.32% for a 30-year fixed mortgage and 6.68% for a 15-year fixed, both over one percentage point higher than in 2025. Both Spigone and Guthrie noted, though the rates sit around the historical average, even moderate decreases could help spur more movement.

“If you look back and see a year ago, interest rates were in the low 6’s,” said Guthrie, “I think if we got back into the 6’s… I think a lot of folks would say, ‘Okay, I’m willing to go for that and I’m going to get back in the market.'”

Certain factors may indicate that prices could drop in the near future, according to Guthrie. With more inventory for buyers, sellers may need to be a bit more strategic about pricing.

“Pending sales were down pretty significantly in the third quarter which usually means the sold price and the sold numbers in the fourth quarter will be down as well,” said Guthrie.

The attractiveness of the area, however, may also work against those decreases Spigone explained.

“Interest rates are where the interest rates are and prices are going to continue to go up because Central Virginia is a great place to live,” she said. “And so, there’s always going to be some demand.”