Third Quarter 2025 Market Report: Charlottesville MSA Market
Covering Charlottesville, Albemarle, Fluvanna, Greene, Louisa, and Nelson
Market Overview
In the third quarter of 2025, the Charlottesville MSA residential market continued to normalize: inventory expanded and the frenzy of the past few years eased. Compared to the third quarter of 2024, buyers and agents saw more homes to choose from, slightly softer pricing pressure, and less time-sensitive competition.
Key Takeaways & Year-over-Year Comparisons
1. Active Inventory Up Significantly
- The average number of active residential listings in the third quarter of 2025 was 1,095, a +28% jump from 854 in the third quarter of 2024.
- Inventory volume also increased (third quarter 2025: $964M vs. third quarter 2024: $810M; +19%), offering buyers more options across all counties.
2. More New Listings Enter the Market
- New listings surged to 1,463 in the third quarter of 2025, a +21% increase over the 1,206 new listings in the third quarter of 2024.
- This aligns with rising seller confidence, but it also means greater competition for current sellers.
3. Pricing Stabilizes
- The median list price of new listings ticked up from $484,552 (third quarter 2024) to $490,000 (third quarter 2025), an increase of +1%—a marked slowdown from the double-digit gains seen in 2021–2023.
- The median sold price slipped slightly by −1%: $460,000 in the third quarter of 2025 versus $465,988 in the third quarter of 2024, indicating price growth is plateauing and subtle buyer leverage is returning.
4. Homes Taking Longer to Sell
- Days on Market (DOM) averaged 40 days in the third quarter of 2025, up +21% from 33 days in the third quarter of 2024.
- Sellers should be prepared for longer marketing periods and be proactive in adjusting strategy if homes don’t attract offers quickly.
5. Closed Sales Hold Steady
- There were 954 closed residential sales, virtually unchanged from 952 in the third quarter of 2024.
- Closed volume rose 3% to $579M, largely due to higher average transaction values.
6. Negotiation Power Shifts
- The average closed-to-list price ratio in the third quarter of 2025 dropped to 98.6%, compared to 99.6% in the third quarter of 2024. This one-point shift shows buyers are negotiating more successfully, often securing small price reductions or concessions.
7. Market Moves Toward Balance
- Months of Inventory rose from 2.69 to 3.44 year over year (+28%), pushing the market closer to equilibrium and reducing urgency for buyers.
What This Means
Sellers: Expect higher days on market, increased competition from other listings, and the need for data-driven pricing. The days of unchecked price escalation are behind us…for now.
Buyers: There are more homes to choose from and a bit more room to negotiate, even with prices still at historically high levels.
Summary
Compared with last year, the Charlottesville MSA in the third quarter of 2025 looks more balanced: more homes on the market, steady sales activity, and a pause in upward price momentum. Buyers have more choice and more room to negotiate, while sellers should plan for longer timelines and lean on smart pricing and strong presentation.
If you have specific questions or would like to discuss the current market in more depth, please reach out to your Nest agent.
