If August felt a little slower, you weren’t imagining it. Across Virginia, buyer activity cooled while more sellers tested the waters. The Buyer Activity Index slipped to 34, down from July, while the Seller Index ticked up for a second month to 46. It’s not a flood of new listings, but sellers are gradually returning even as buyers hesitate.

On the ground, first time buyers made up about a third of deals and cash offers eased to roughly one in five sales. The average home closed with just 1.3 offers compared to 1.8 in July. That means fewer bidding wars, though about three in ten sales still went above asking earlier this summer.

Why the slowdown? High mortgage rates remain the top obstacle, followed closely by a lack of options. Some buyers are also struggling to save down payments. Sellers face their own challenges, with many reluctant to give up their low mortgage rates or unable to find the right next home.

Even after contracts are signed, not every deal reaches closing. Inspections derailed the most deals, followed by mortgage approval delays, low appraisals and financial hits that hurt financing. It’s a reminder that clean homes and strong financing prep matter more than ever.

So who’s selling? Many are making practical moves: relocating out of state, downsizing, upsizing, or letting go of second homes. It’s less about speculation and more about lifestyle changes. Agents also shared a policy wish, most believe a capital gains exclusion on home sales would encourage more listings far more than tax tweaks.

Looking ahead, supply should firm up modestly, while demand stays mixed. Pending sales rose 6.3% year over year in August, proving motivated buyers and realistic sellers still find common ground. Price expectations are split, with some agents calling for increases, others for steady numbers and a sizable group expecting declines.

I’d say the market feels like it’s catching its breath. If you’re buying, you’ll see less competition but tougher scrutiny on loans and inspections. If you’re selling, presentation and realistic pricing are your best friends. And for those waiting on lower rates, remember, the best homes still move quickly, even in a cooler market.

Source Inspiration: Virginia Realtors