As we reach the halfway point of 2025, the Lynchburg real estate market continues to show signs of stability and steady growth. Interest rates have remained relatively consistent over the past three years, hovering for the most part between 6% and 7%, with today’s average landing near 6.75%. While these rates may feel higher than those from the ultra-low interest era, they are still historically moderate – and buyers who step in now can start building equity right away as home values continue to rise.
In fact, home prices in our region have steadily increased year over year. The average sales price in June 2025 rose to $382,104, compared to $336,694 in June 2024 and $327,180 the year prior. That’s a nearly 17% gain over two years – clear evidence that waiting to “time the market” may mean missing out on future appreciation. Inventory is also climbing, with 780 homes available in June – an increase of 124 homes from last year. While homes are sitting slightly longer on the market, with an average of 34 days compared to 30 days in 2024, this trend indicates we’re moving toward a more balanced market. In a balanced market, both buyers and sellers benefit – buyers have more choices and time to make decisions, while sellers still enjoy strong property values and buyer demand.
Lynchburg has historically been somewhat insulated from the wild swings of the national real estate market. However, we’ve followed the national trend of rising home values, and demand continues to grow, especially as more families move into our area to take advantage of our community charm, affordability and quality of life. Whether you’re planning to buy your first home or considering listing your current one, partnering with a Realtor is statistically proven to help you achieve the best results – top dollar, better terms and a smoother process. Our local real estate professionals are experts in navigating the unique dynamics of this market.
When you’re ready to take the next step – whether it’s buying, selling or just asking questions – reach out to your trusted Realtor. We’re here to help.
Billy Morris
2025 President of the Lynchburg Association of Realtors
Associate Broker John Stewart Walker Inc.