If you’ve ever sat through an economics class, you’ve probably heard about the simple rule of supply and demand. That rule is on full display right now in our local housing market. For several years, especially following the onset of COVID-19, the supply of homes for sale plummeted, and prices took off like a rocket. With fewer homes available and plenty of buyers eager to move, the result was predictable: multiple offers, bidding wars and sharp increases in home values year after year.
Over the past year, however, that pendulum has started to swing back toward balance. Our housing inventory has been gradually rebuilding, and as more listings hit the market, we’re seeing something we haven’t seen in quite some time: price adjustments. Sellers are realizing that in order to attract buyers, pricing competitively is more important than ever. Homes are still selling, and values are holding steady – but prices are no longer racing skyward the way they were in recent years.
What we’re seeing now is a healthy recalibration. Home values remain strong and are still a few percentage points higher than the last year, but that dramatic, double-digit appreciation we saw during the pandemic years has leveled off. In other words, we’re entering a period of sustainable, steady growth rather than the rocket-boosted gains of the past.
Interest rates are playing their part as well. Recent dips have helped keep the market moving, giving buyers a bit of breathing room and softening the landing for sellers. Still, if rates were to fall further, we could see another wave of upward pressure on prices. For now, the balance between supply, demand and affordability feels well – refreshingly normal.
As we move toward the holidays, days on the market may stretch a bit longer, and buyers will have more options to explore. The key statistic to watch heading into 2026 will be the number of available homes. If supply remains healthy, we can expect continued stability and moderate appreciation. If inventory tightens again, prices could climb faster than expected.
Every neighborhood and price range tells its own story, so if you’re curious about what this balance means for your home, talk with your Realtor. Understanding your local micro-market is the best way to make smart, confident decisions in today’s ever-shifting real estate landscape.
Billy Morris
2025 President of the Lynchburg Association of Realtors
An Associate broker at John Stewart Walker, Inc.