Rising Rates Cool Virginia Home Sales in August 2026: What It Means for Richmond Buyers and Sellers
Every month, Virginia REALTORS® publishes a statewide look at home sales. As the association's 2026 President, I get to see those numbers before most people do, and as a broker who has sold homes around Richmond, Virginia for more than 35 years, I always ask the same question: what does this mean for the families we actually work with?
August 2026 brought a real shift. Here is what happened, and what I'd tell a Richmond buyer or seller sitting across my kitchen table in fall 2026.
Note: This post is a snapshot of Virginia's August 2026 housing data, written in October 2026. Market conditions change from month to month, so the figures below describe August, not today. For the most recent numbers, see our latest Richmond market updates.
What happened to Virginia home sales in August 2026?
Sales slowed. 8,985 homes sold across Virginia in August, down 4.6% from August 2025, the first year-over-year drop in closed sales in nearly a year. Even so, sales for 2026 are still 3.6% ahead of last year through the first eight months.
Virginia housing market snapshot: August 2026
Closed sales: 8,985 (down 4.6%)
Median sales price: $449,000 (up $19,000, or 4.4%)
Median days on market: 19 (17 a year ago)
Active listings: 28,560 (up 13.8%, the most for any August since 2019)
New listings: 13,478 (up 4.6%)
Months of supply: 3.2 (2.9 a year ago)
Pending sales: 8,346 (down 3.1%, the second monthly decline in a row)
30-year fixed rate: 6.95% average in the third week of September (6.26% a year ago)
Why did Virginia home sales slow down?
Mortgage rates. In August, rates moved above where they were a year ago, and buyers felt it. Virginia REALTORS® Chief Economist Ryan Price put it plainly: higher rates "could lead to a slower fall market."
When a buyer's monthly payment jumps, some pause, some adjust their price range, and some keep going. The pullback in pending sales tells us more buyers were pausing in August.
Are home prices still going up in Virginia?
Yes. The statewide median climbed to $449,000, up 4.4% from a year ago. Slower sales have not meant falling prices. What has changed is pace: homes are taking a couple of extra days to sell, and buyers have more to compare.
How is the Richmond market different from the rest of Virginia?
In August 2026, Richmond was tighter than the state as a whole. According to Central Virginia Regional MLS data for Chesterfield, Hanover, Henrico and Richmond City, August single-family numbers looked like this:
Closed sales: 871 (down 9.0%)
Pending sales: 858 (up 6.3%)
Median sales price: $450,000 (up 3.7%)
Median days on market: 22
Inventory: 1,607 homes (down 6.1%), about 1.8 months of supply
Condos and townhomes: median $379,370 (up 3.9%), 46 median days on market
So while statewide inventory was growing in August, single-family supply around Richmond actually shrank, and local pending sales went up. Statewide headlines don't always describe what's happening on your street, which is why we look at your neighborhood and price range before giving advice.
What does more inventory mean for Richmond homebuyers?
More choices and a bit more breathing room. As I said in the Virginia REALTORS® release, "One encouraging trend for buyers continues to be the steady expansion of available inventory. That can help provide more options to choose from as buyers navigate today's higher borrowing costs."
What I'd tell a Richmond buyer in fall 2026:
Get fully preapproved, and re-run your numbers at the rates you would get when you buy, not rates from earlier in the year
Ask your lender to walk you through your loan and rate options before you start touring
Use the extra days on market to do your homework, including inspections, instead of waiving protections
In Richmond's tighter single-family market, still be ready to move on a well-priced home
What should Richmond home sellers do in fall 2026?
Price it right from day one. Richmond values were still rising in August 2026, but buyers were more payment-sensitive than a year earlier, and a home that starts too high tends to sit.
Price to the market as it is when you list, not to old headlines
Prepare the home so it shows well in a market where buyers are comparing
Be ready to talk terms, like closing-cost help, not just price
Watch your neighborhood's numbers, not just statewide averages
Final thoughts: Is fall 2026 a good time to buy or sell in Richmond, Virginia?
For prepared buyers and well-positioned sellers, yes. The market has cooled from its pace earlier in the year, but prices were holding, buyers had more options statewide, and Richmond remained a strong, competitive market. At Two Dog Realty, I work with every client personally, and I'd be glad to look at what these numbers mean for your specific situation.
Frequently Asked Questions
What was the median home price in Virginia in August 2026?
The statewide median sales price was $449,000 in August 2026, up $19,000, or 4.4%, from August 2025, according to Virginia REALTORS. Prices kept rising even as sales slowed.
Were Virginia home sales up or down in August 2026?
In August 2026, 8,985 homes sold across Virginia, down 4.6% from a year earlier and the first year-over-year decline in nearly a year. For the year through August, statewide sales are still 3.6% ahead of 2025.
How many homes were for sale in Virginia at the end of August 2026?
Virginia had 28,560 active listings at the end of August 2026, 13.8% more than a year earlier and the most for any August since 2019. Months of supply rose to 3.2 from 2.9.
What is happening in the Richmond, Virginia housing market?
In August 2026, Richmond was tighter than the state. In Chesterfield, Hanover, Henrico and Richmond City, single-family closed sales fell 9.0% in August 2026, but pending sales rose 6.3%, the median price rose 3.7% to $450,000, and supply fell to 1.8 months.
How are mortgage rates affecting homebuyers in fall 2026?
Rates are the main reason sales cooled. The average 30-year fixed rate reached 6.95% in the third week of September 2026, up from 6.26% a year earlier, and statewide pending sales fell 3.1% in August.
Is fall 2026 a good time to buy a home in Richmond, Virginia?
It can be if your budget works at the rates available in fall 2026. Buyers statewide have more homes to choose from and a little more time to decide. In Richmond, supply is still tight, so get fully preapproved and be ready to act on well-priced homes.
Was it a good time to sell a house in Richmond, Virginia in fall 2026?
Yes, for homes that are priced and prepared well. Richmond single-family prices and pending sales both rose in August 2026, but homes are taking slightly longer to sell and buyers are more price-sensitive, so pricing it right from day one matters.
Sources
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Have a question about your own situation? Book a Strategy Call or call Curt Reichstetter at 804-370-1210.
Curt Reichstetter
Two Dog Realty
804-370-1210
curt@curtsellsrva.com
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