Charlottesville Housing Market Update: What Buyers and Sellers Should Know (Q4 2025)

As a Charlottesville real estate agent working daily with buyers, sellers, and investors, I’ve been watching this market shift in real time. As we head into the end of 2025, Charlottesville is still a strong, high-demand market, but it is becoming more balanced than the frenzy of the 2021–2022 years. Prices are still rising, inventory is slowly increasing, and neighborhood-level competition varies more than ever. Whether you’re planning to buy, sell, or invest, here’s the most accurate and up-to-date look at what’s happening right now.

Home Prices Are Rising, but Growth Isn’t Even Across All Neighborhoods

Across major data sources, home values in Charlottesville continue trending upward:

• Typical home value: ~$505,000 (up ~1.2% YoY)
• Median sale price (Oct 2025): ~$590,000 (up ~18% YoY)
  

These numbers may look contradictory, but there’s a reason: Zillow includes all homes, even those not currently listed. Redfin only tracks homes that are actually sold, often higher-quality or newly renovated homes.

This reflects what I’m seeing in the field. Modern, renovated, walkable, and UVA-proximate homes are driving the biggest price gains.

The following neighborhoods are where prices are rising fastest:

• Belmont
• North Downtown
• Woolen Mills
• 10th & Page
• Fifeville
• UVA-adjacent neighborhoods
• Newer construction in Albemarle County (especially the north side) 

Buyers should be prepared for premium pricing in walkable, renovated, or centrally located areas. Sellers in these neighborhoods are still seeing strong offers, especially when their homes are move-in ready.

Inventory Is Increasing — Slowly — and Homes Are Spending Longer on the Market

Charlottesville is still not a high-inventory market, but supply is loosening:

• Active listings have increased slightly compared to last year
• Fewer homes are going under contract within the first 10 days
• Median days on market are rising for both attached and detached homes
• Median “days to pending” is now around 26 days 

During the pandemic boom, homes were regularly sold in a weekend. Today, that is much less common unless the home is:

• fully updated
• priced precisely
• located in a premium UVA-area neighborhood 

What this means for buyers

You now have more breathing room. You can compare homes, schedule second showings, and make more measured decisions.

What this means for sellers

Well-priced, well-presented homes still sell quickly, but most sellers should expect 3–6 weeks on market rather than a weekend.

Demand Remains High, Especially Near UVA and Walkable Areas

Despite moderating speed, Charlottesville continues to be labeled “very competitive” by Redfin. This absolutely aligns with what I’m seeing with my buyers:

The strongest demand remains in:

• UVA Grounds area
• UVA Hospital and medical district
• Downtown Charlottesville
• Belmont
• North Downtown
• 10th & Page
• Fifeville
  
• Areas with walkability, restaurants, trails, or transit access

Why demand stays strong

• UVA continues to bring students, faculty, medical professionals, and staff into the city
• There is limited land for new development.
• Out-of-state relocators continue to choose Charlottesville for its lifestyle and career opportunities.
• High rent prices push some renters into homeownership sooner than expected. 

These fundamentals create a market with long-term resilience.

What Buyers Should Know in Q4 2025

If you’re preparing to buy a home soon, here’s the bottom line:

1. Get pre-approved immediately.

With rising prices, you need clarity on your maximum budget so you can move confidently when the right home appears.

2. Expect competition in the UVA area and walkable neighborhoods.

These markets still move fast and attract multiple offers.

3. Pay attention to micro-markets.

Charlottesville is not one market; each neighborhood behaves differently.

4. Prioritize conditions.

Move-in-ready homes get the most attention because renovation costs are higher in 2025.

5. Think long term.

Charlottesville has historically appreciated well. Even with moderating growth, homeownership remains a strong long-term investment here.

What Sellers Should Expect in Q4 2025

If you’re considering listing your home this winter or early 2026, you’re still in a favorable position, as long as the home is prepared strategically.

1. Presentation matters.

Buyers prioritize move-in-ready homes. Staging, decluttering, and minor repairs significantly boost offer strength.

2. Pricing correctly is essential.

Overpricing leads to longer market time. Correct pricing leads to stronger, cleaner offers.

3. Neighborhood desirability plays a major role.

Homes near UVA, downtown, and walkable areas continue to attract immediate attention.

4. Expect a more balanced timeline.

Plan for 3–6 weeks on the market instead of a weekend sale.

5. Highlight lifestyle and convenience.

Walkability, access to restaurants, proximity to UVA Hospital, trails, and ease of commuting all remain top buyer priorities.

What to Watch as We Head Into 2026

Several key factors will influence next year’s Charlottesville housing market:

Mortgage rates

If rates drop below ~6.5%, expect demand to surge almost immediately.

UVA economic stability

The university remains one of the strongest stabilizing forces in our market.

Inventory growth

If more sellers list their homes in 2026, buyers may gain more negotiating power.

Neighborhood-level appreciation

Some areas will continue appreciating faster than others.

Investor demand

High rents and low vacancy continue to attract long-term investors to Charlottesville.

Overall, Charlottesville remains a strong-bones market: limited supply, steady demand, stable employment, and desirable lifestyle amenities, all of which support long-term price stability.

Call Matthias John Realty Today for Local Housing Market Insights

Charlottesville is closing out 2025 as a strong but more normalized housing market. Prices are rising, inventory is slowly increasing, and certain neighborhoods remain highly competitive.

If you’re thinking about making a move, I’d be happy to talk through how these trends affect your unique situation and neighborhood. Call or text me anytime at 434-906-4630, or reach out through a contact form for personalized guidance.

Frequently Asked Questions About the Charlottesville Housing Market (Q4 2025)

1. Is now a good time to buy a home in Charlottesville?

Yes, especially if you want more negotiation room, slightly longer DOM, and less bidding-war pressure than in the past few years. Prices are still rising, so buying sooner can help you lock in future appreciation.

2. Is Charlottesville a buyer’s market or a seller’s market?

Charlottesville is still a seller-leaning market, but more balanced than 2021–2022. Some neighborhoods strongly favor sellers (Belmont, North Downtown, UVA-area), while others are more moderate.

3. Will home prices in Charlottesville go down in 2026?

There are currently no strong indicators that prices will fall. Limited inventory, steady UVA-driven demand, and high construction costs continue to support prices.

4. Why is Charlottesville real estate so expensive?

Charlottesville has:

• limited land for new development
• a strong university-driven job market
• continued out-of-state demand
• highly desirable walkable neighborhoods 

These factors create long-term upward pressure on prices.

5. How long are homes staying on the market right now?

The median “days to pending” is around 26 days, with premium homes in walkable UVA-area neighborhoods still moving faster.

6. What neighborhoods are most competitive right now?

Belmont, North Downtown, 10th & Page, Fifeville, UVA-adjacent areas, and newer Albemarle County communities continue to see the strongest competition.