U.S. Real Estate Market Update: Q3 2025

The national housing market continued to show resilience in the third quarter of 2025, even as affordability challenges remained top-of-mind for buyers. According to Berkshire Hathaway HomeServices’ quarterly market review, home prices held steady nationwide, with notable strength in several regions including the Northeast.

Here’s a closer look at the latest market metrics and how they may influence your next move.

The U.S. median home price reached $424,150 in Q3.

• +1.2% year over year
• +1.4% quarter over quarter

Prices have moderated from the rapid gains seen during the pandemic but are still ticking upward, driven by tight inventory and steady buyer demand.

Different parts of the country are seeing very different pricing dynamics:

South (including Virginia): $366,200
• –0.6% year over year
• –0.1% quarter over quarter
The South remains one of the nation’s most sought-after regions for lifestyle and affordability, but pricing here has flattened out slightly as the market adjusts to higher borrowing costs and cautious buyer activity.

Northeast: $534,950
• +6.1% year over year
Higher-priced markets in this region continue to show stronger appreciation driven by limited supply and sustained demand near major population centers and resort areas.

Nationally, annualized home sales remain constrained by limited supply, as many homeowners with low mortgage rates are choosing to stay put. That’s still true across the South, including Virginia. But unlike the Northeast, where competition has pushed prices higher, the South has seen a slight softening in pricing as buyers weigh affordability and interest rates.

In markets like Smith Mountain Lake, that dynamic creates a bit more breathing room for qualified buyers, while well-positioned listings still stand out and move. Homes with desirable waterfront access, updated finishes, and strong lifestyle appeal continue to capture attention quickly.

Smith Mountain Lake reflects broader trends across the South: high demand for quality homes, but more pricing stability than overheated coastal markets. That dynamic creates advantages on both sides:

• Sellers benefit from continued buyer interest, especially for turn-key waterfront and water-access homes
• Buyers may find stronger negotiating opportunities than in regions still seeing steep price gains
• Local property values remain resilient thanks to lifestyle appeal and ongoing in-migration to Virginia

In short, Smith Mountain Lake remains a competitive market, but without the sharp price acceleration of the Northeast. Aligning pricing, presentation, and strategy with current buyer expectations remains the key to capturing value this fall. 

Whether you’re exploring the idea of selling or searching for the right lake home, having a knowledgeable local expert is essential. As conditions shift from quarter to quarter, strategy matters more than ever. 

If you’re curious what your home may be worth today or want guidance tailored to Smith Mountain Lake’s neighborhoods and waterfront communities, we’re here to help.

Contact Berkshire Hathaway HomeServices Smith Mountain Lake Real Estate
Your trusted local advisors for buying and selling at Smith Mountain Lake.