Prices and Housing Inventory Continue to Grow

The Williamsburg Area Association of REALTORS® (WAAR) has released its Fourth Quarter 2025 Housing Market Report, highlighting a market that cooled modestly in sales activity while continuing to see strong price growth and a notable increase in housing inventory across the region.

According to the report released earlier this month, 767 homes were sold across the WAAR footprint in the fourth quarter, a 5% decline from the same period last year, reflecting a seasonal slowdown and broader economic shifts. Despite fewer transactions, home values continued to rise sharply, signaling sustained demand and long-term confidence in the region’s housing market.

The regional median sales price reached $480,000 in Q4 2025, an increase of $65,000—or 16%—from a year earlier. Price growth was especially pronounced in Williamsburg, where the median price surged 31% to $485,000; and James City County, which saw a 13% increase to $501,250

These gains significantly outpaced the statewide median price increase of 2.4%, underscoring the strength of the local market.

Housing supply also expanded substantially toward the end of the year. Active listings increased 48% year-over-year, reaching 783 homes on the market. This growth indicates improving conditions for buyers. Mortgage rates also continued to ease entering 2026, with the average 30-year fixed rate falling to 6.06%, its lowest level since mid-2022.