The Roanoke Valley real estate market is currently favoring sellers due to a significant shortage of available homes, a trend confirmed by the latest housing data. Limited new construction has constrained the total housing inventory, creating a competitive environment for prospective buyers in the region.
According to the Roanoke Valley Association of Realtors (RVAR), September 2025 data shows a market where demand continues to outpace supply. While this creates advantages for those selling their properties, it presents challenges for individuals and families looking to purchase a home.
Key Takeaways
- The Roanoke real estate market is a seller's market, driven by low housing inventory.
- The average price for a closed home in September was $384,718, remaining above the 2025 yearly average.
- Total housing inventory stood at 1,231 units, with limited new construction contributing to the shortage.
- Mortgage rates are beginning to decline, potentially drawing more buyers into the competitive market.
September Market Snapshot
Data released for September 2025 illustrates the tight market conditions. During the month, 434 home sales were finalized, while 451 properties were placed under contract, indicating persistent buyer activity. However, only 630 new listings were added to the market, which is not enough to satisfy the current level of demand.
The total housing inventory available for sale was just 1,231 units. Julie Kingery, president of the RVAR, noted that a lack of new home construction is a primary factor contributing to this inventory squeeze. This scarcity directly impacts prices and competition among buyers.
September 2025 Housing Metrics
- Contracts Closed: 434
- Average Sale Price: $384,718
- Median Sale Price: $306,750
- New Listings Added: 630
- Total Available Homes: 1,231
Price Trends and Market Stability
Despite the challenges, the Roanoke market has shown stability in sales volume throughout 2025. An average of nearly 438 homes have been sold each month this year. Home prices have remained strong, reflecting the competitive environment.
The average sale price for a home in September was $384,718. This figure is a decrease from the yearly peak of $419,425 seen in July, but it remains higher than the year-to-date average of $375,333. This sustained high pricing demonstrates the leverage sellers currently hold.
Regional Differences in Sales Pace
The speed at which homes sell varies across the Roanoke Valley. According to Kingery, properties in high-demand areas are moving very quickly.
"Homes listed in areas such as Roanoke County, the city of Salem, and Botetourt County have sold quicker at about less than 90 days," Kingery explained.
In contrast, the market pace is slightly slower in other parts of the region. For instance, homes in Franklin County typically take around 90 days or more to sell, offering a different market dynamic for buyers and sellers in that area.
Looking Ahead: Mortgage Rates and Buyer Interest
A new factor that could influence the market is the recent shift in borrowing costs. Mortgage rates have started to decline, which could provide some relief for buyers concerned about affordability. According to Virginia Realtors, the current rate for a 30-year fixed mortgage is now 6.12%.
Impact of Lower Mortgage Rates
Lower interest rates reduce the monthly payment for a given loan amount, making homeownership more accessible. A decrease from higher rates could entice buyers who were previously waiting on the sidelines to enter the market. However, in a low-inventory environment, this increased demand could also lead to more bidding wars and upward pressure on prices.
This potential influx of new buyers could intensify competition for the limited number of homes available. While sellers may benefit from a larger pool of interested parties, buyers will need to be prepared for a fast-paced and competitive purchasing process.
The Roanoke housing market remains a dynamic environment defined by strong seller advantages. With inventory low and prices holding firm, the coming months will reveal how shifting mortgage rates will shape the balance between supply and demand.
