Williamsburg, VA, February, 2026 –
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, 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.
Prices Continue to Climb
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
- 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.
Inventory Expansion Signals Market Shift
Housing supply expanded substantially toward the end of the year. Active listings increased 48% year-over-year, reaching 783 homes on the market, and months of supply rose to 2.9, up from 2.0 last year. While still below levels considered balanced, this growth indicates improving conditions for buyers.
Homes Taking Longer to Sell
As inventory increased, homes spent more time on the market. The median days on market rose to 28 days, nine days longer than a year ago, suggesting a gradual shift away from the fast-paced seller’s market seen in prior years.
Economic Backdrop
Mortgage rates continued to ease entering 2026, with the average 30-year fixed rate falling to 6.06%, its lowest level since mid-2022. At the same time, the regional unemployment rate increased to 3.9%, mirroring statewide trends and reflecting broader economic cooling.
“As mortgage rates trend downward and inventory expands, we expect renewed activity as we move further into 2026,” said Alison Sakimura, the 2026 WAAR President. “Working with a local REALTOR® remains the best way for buyers and sellers to navigate these evolving conditions.”
About Williamsburg Area Association of REALTORS®
The Williamsburg Area Association of REALTORS® is a professional trade association dedicated to promoting the interests of real estate professionals and property owners in the Williamsburg region. WAAR provides resources, advocacy, and education to its members, fostering a vibrant and informed real estate community.
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