Housing Market 2025 Review and 2026 Forecast | Hampton Roads

Investors reviewing the Hampton Roads 2025 housing market will notice that the narrative of recent years has shifted from “market frenzy” to a more stable and predictable norm for both buyers and sellers. The housing market data from 2025 reveals a stabilizing landscape.

Let’s take a quick snapshot look at the activity from Southside (Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk) over the past 12 months, highlighting a much-needed surge in listings for potential buyers:

Housing market data sourced from REIN (Real Estate Information Network) 2025 Monthly Market Reports.

Skip To:

• Supply Dynamics: Why Buyers Have More Leverage in 2026

• Price Resilience: Analyzing the Appreciation

• The Investor Perspective: Strategic Opportunities in 2026

• Regional Spotlight: Investment Insights by City

• Planning Your 2026 Move: The "Balanced Market" Playbook

• FAQs / Key Takeaways from the 2025 Hampton Roads Housing Market Review

• The Bottom Line

  
  

Supply Dynamics: Why Buyers Have More Leverage in 2026

The most significant headline in this Hampton Roads real estate update is the volume of choice. Throughout 2025, the southside averaged 2,700 listings per month - a 17.56% jump from the year prior.

While the 2025 Months’ Supply of Inventory (MSI) at the end of the year was 2.01 for December, we saw it climb to a monthly average of 2.38 MSI in 2025. This indicates a market that is moving steadily out of "extreme seller" territory and toward a healthier balance.

2026 Housing Supply Forecast:

For local families, this means the "panic buying" era is fading, allowing for more thorough inspections and room to be more selective about school districts in Virginia Beach or waterfront proximity in Norfolk. However, with an increase in activity toward the end of the year, it will still be important to act quickly in 2026 when you spy the ideal house and craft a competitive offer.

Price Resilience: Analyzing the Appreciation

Despite the increase in supply, Hampton Roads home values haven't just held steady—they’ve hit new heights.

• The Spring Surge: While the 2025 median sales price (MSP) is $357,000, the region hit an all-time high of $369,000 MSP in July in southside Hampton Roads.

  
  

• Current Pulse: As of December 2025, local MSP remains strong at approximately $355,000, up 1.43% from December 2024.

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2026 Hampton Roads Housing Prices Forecast:

So is Hampton Roads a good place to invest in real estate in 2026?

In 2025, southside home values appreciated 4.17% even as the market cooled – and our experts expect to see a similar increase in 2026. With the national average of appreciation at only 1.7%, Hampton Roads remains a strong place to invest.

Hampton Roads continues to provide a sustainable path for equity growth without the volatility seen in other coastal markets. We believe real estate is still one of the best hedges against inflation, as home values remain strong even as the market slows.

Already own a property? Here are 4 ways to increase its value in 2026.

The Investor Perspective: Strategic Opportunities in 2026

If you are looking fora real estate investment in Hampton Roads, the 2025 data points to a "value-add" strategy.

• Negotiating "Stale" Listings: With the average Days on Market (DOM) now at 31 days, properties that aren't "perfect" are sitting longer. Smart investors are using this time to negotiate on repairs or price, especially in the multi-family sector near Naval Station Norfolk.
  

• Cumulative Opportunity: With over 24,000 new units listed this year, there is more "on-market" inventory for individual investors to analyze compared to the inventory droughts of 2022-2023.
  

• Military Demand: With major hubs like Naval Station Norfolk and NAS Oceana, the rental market remains incredibly robust. The increase in inventory allows individual investors to find multi-family units or "house hacking" opportunities that were previously snatched up by institutional buyers.
  

Whether you’re interested in house-hacking or long-term rentals, there are multiple ways to make money in residential real estate in Hampton Roads today.

Regional Spotlight: Investment Insights by City

In Hampton Roads, the Southside (Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk) continues to drive regional value.

• Virginia Beach: Remains the high-water mark for the region, with medians consistently trending toward the $400,000 mark in 2025.
  

• Norfolk: Remains a hotspot for individual investors interested in historic renovations and multi-family units near ODU and the military bases.
  

• Chesapeake: Continues to be a leader in inventory growth with lots of new construction and suburban expansion.
  

• Market Speed: The Southside average of 31 days on market confirms that while buyers have more choices, quality homes in good school zones still sell in roughly one month.
  

When buying or selling property, it’s key to remember that real estate is a hyperlocal industry. Make sure to work with a top Hampton Roads real estate agent who is an expert in the ebbs and flows of your local market.

Planning Your 2026 Move: The "Balanced Market" Playbook

As we head into the Hampton Roads housing market forecast 2026, the data suggests that timing and preparation will be your greatest assets.

• For Buyers: The nearly 2.38-month supply of inventory currently reported is the highest we've seen since 2019. Use this leverage to find a home that truly fits your 10-year plan, rather than settling for the first available option. But remember: the best-priced properties in prime locations will sell fastest.
  

• For Sellers: You are competing with roughly 17% more active inventory in the southside than you were last year. Strategic, data-driven pricing and professional presentation are some of the keys to selling your home quickly in 2026. Make sure you have a reliable top Hampton Roads listing agent to help.

Need to sell your Hampton Roads home fast in this slowing market? We can help.

FAQs / Key Takeaways from the 2025 Hampton Roads Housing Market Review

Is the Hampton Roads market cooling?

It is rebalancing. While inventory is up 17.56% in 2025 southside, prices hit a record peak of $369,000 in July 2025, showing sustained demand.

Is the housing market going to crash in 2026?

While demand has cooled somewhat, we don’t anticipate a housing market crash in 2026. There’s still plenty of interest in the inventory that comes available, as affordability issues have sidelined potential buyers over the past few years. Without a separate economic catalyst, we expect to see house prices slightly increase in 2026 and inventory to continue slowly growing.

What is the current MSI in Hampton Roads?

The 2025 average MSI was 2.38, and homes stayed on the market for an average of 31 days.

Are home prices dropping in Virginia Beach?

No. Prices remain resilient, with the regional median up 5.17% year-over-year with a median sales price of $392,900.

Should I buy a house this year?

2026 could be a good year to buy a house for buyers in the right position. Check out our breakdown in our post: Should I Buy a House in 2026?

The Bottom Line

While the frantic pace of the market we’ve seen over the last few years is cooling down, statistics from the 2025 Hampton Roads housing market show us that the market is holding strong. Without an outside catalyst, we don’t foresee a housing market crash in 2026.

The rising active listings in 2025 show a slow return to normalcy. Gone are the years of skyrocketing home prices, though they continue to increase slowly. With less competition from buyers, multiple offer situations have become less common, but they are still seen for properties well-priced for their condition and location.

Housing market statistics and data sourced from REIN (Real Estate Information Network) 2025 Monthly Market Reports.