Charlottesville Real Estate Report

Executive Summary

The Charlottesville Area Association of REALTORS (CAAR) presents its Q1 2025 housing market analysis, covering Albemarle, Charlottesville, Fluvanna, Greene, Louisa, and Nelson counties. The regional market experienced stable sales, moderate price growth, and increased inventory, reflecting a balanced yet dynamic environment. Key economic factors, including a rising unemployment rate and fluctuating mortgage rates, influence the market, while local trends highlight varied performance across jurisdictions.

Economic Overview

Virginia’s economy faces challenges from trade uncertainties and federal spending adjustments, with effects still emerging. The state’s job market showed resilience, adding 5,300 jobs in November 2024, driven by gains in Transportation & Warehousing (+6,000) and Health Care (+2,700). However, sectors like Administrative & Waste Services (-2,000) and Leisure & Hospitality (-1,200) saw declines. The unemployment rate in Virginia rose to 3.3% in February 2025, up from 2.9% a year ago, while the CAAR region reported 3.0%, compared to 2.5% in 2024. Nationally, unemployment reached 4.5%. The 30-year fixed mortgage rate averaged 6.81% in late April 2025, down from 7.17% the previous year, easing affordability slightly.

Housing Market Trends

Sales Activity

The CAAR region recorded 695 home sales in Q1 2025, nearly identical to the 694 sales in Q1 2024, indicating stable demand. Fluvanna County led with a 39% sales increase (93 sales), followed by Nelson (14%) and Greene (10%). Conversely, Charlottesville saw a 19% decline (60 sales), Albemarle dropped 5% (262 sales), and Louisa fell 7% (154 sales). Statewide, Virginia experienced a 4.2% sales decrease.

Median Sales Prices

The region’s median sales price rose 3% to $450,000, up $15,000 from Q1 2024. Greene County saw the largest gain at 17% ($427,500), followed by Nelson (12%, $430,000) and Fluvanna (9%, $369,990). Albemarle’s median price increased 3% to $541,058, while Charlottesville (-1%, $475,000) and Louisa (-3%, $373,782) saw declines. Virginia’s statewide median was $405,000, up 5.2%.

New Construction

New construction activity grew, with 358 residential permits issued in the Charlottesville Metro Area by March 2025, a 17% increase from 2024. Single-family and multifamily permits both outpaced last year’s levels. New construction sales reached 177 units, up from 164, with a median price of $473,250, a slight rise from $454,500 in Q1 2024.

Sold Dollar Volume

Total sold dollar volume in the CAAR region reached $386.6 million, a 1% increase ($4.54 million) from Q1 2024. Fluvanna County saw a 66% surge ($41.2 million), and Greene grew 21% ($24.4 million). Albemarle ($182.3 million, -5%) and Charlottesville ($30.8 million, -22%) experienced declines. Statewide, sold volume hit $10.1 billion, up 2.9%.

Days on Market

Homes spent a median of 18 days on the market, two days longer than Q1 2024. Albemarle was fastest at 8 days, while Louisa and Nelson tied for slowest at 40 days. Greene saw a significant improvement, with homes selling 35 days faster (11 days). Charlottesville’s median was 14 days, up 7 days, and Fluvanna’s was 17 days, up 3 days. Virginia’s statewide median was 17 days.

Inventory

Active listings surged 30% to 875, adding 203 listings compared to Q1 2024. Charlottesville led with a 76% increase (86 listings), followed by Fluvanna (70%, 73 listings) and Louisa (32%, 257 listings). Albemarle added 72 listings (327 total), while Greene saw a 24% decline (38 listings). Nelson grew 18% (94 listings). The region’s months of supply rose to 2.9 from 2.2, indicating a more balanced market. Virginia reported 19,392 active listings, up 29.7%, with 2.2 months of supply.

Local Market Insights

Albemarle County

  • Sales: 262 sales, down 5% (13 fewer).
  • Median Price: $541,058, up 3% ($14,158).
  • Sold Volume: $182.3 million, down 5% ($9.95 million).
  • Listings: 327, up 28% (72 more).
  • Days on Market: 8 days, up 1 day.
  • Analysis: Stable prices and growing inventory suggest a balanced market, despite softer sales.

Charlottesville

  • Sales: 60 sales, down 19% (14 fewer).
  • Median Price: $475,000, down 1% ($7,000).
  • Sold Volume: $30.8 million, down 22% ($8.87 million).
  • Listings: 86, up 76% (37 more).
  • Days on Market: 14 days, up 7 days.
  • Analysis: Increased listings provide buyer options, but declining sales and prices signal caution.

Fluvanna County

  • Sales: 93 sales, up 39% (26 more).
  • Median Price: $369,990, up 9% ($28,990).
  • Sold Volume: $41.2 million, up 66% ($16.3 million).
  • Listings: 73, up 70% (30 more).
  • Days on Market: 17 days, up 3 days.
  • Analysis: Strong sales and price growth reflect robust demand and affordability.

Greene County

  • Sales: 54 sales, up 10% (5 more).
  • Median Price: $427,500, up 17% ($62,500).
  • Sold Volume: $24.4 million, up 21% ($4.15 million).
  • Listings: 38, down 24% (12 fewer).
  • Days on Market: 11 days, down 35 days.
  • Analysis: Tight inventory and rapid sales indicate a competitive market.

Louisa County

  • Sales: 154 sales, down 7% (12 fewer).
  • Median Price: $373,782, down 3% ($10,644).
  • Sold Volume: $74.8 million, slightly up.
  • Listings: 257, up 32% (62 more).
  • Days on Market: 40 days, down 9 days.
  • Analysis: Growing inventory offsets softer sales, with faster sales times signaling demand.

Nelson County

  • Sales: 72 sales, up 14% (9 more).
  • Median Price: $430,000, up 12% ($45,000).
  • Sold Volume: $32.9 million, up 9% ($2.83 million).
  • Listings: 94, up 18% (14 more).
  • Days on Market: 40 days, down 9 days.
  • Analysis: Price growth and increased activity highlight Nelson’s appeal.

Conclusion

The CAAR housing market in Q1 2025 reflects a mix of stability and growth, with flat sales, rising prices, and expanding inventory. Economic uncertainties and higher unemployment temper optimism, but lower mortgage rates and increased listings benefit buyers. Fluvanna and Greene counties show strong momentum, while Albemarle and Charlottesville face softer demand. As inventory grows, buyers gain options, but price growth in most areas underscores the region’s enduring appeal.

Data sourced from Virginia REALTORS®, accessed April 15, 2025. Preliminary figures may be adjusted as additional information is reported. Contact the Virginia REALTORS® Research Team for inquiries.