Why the Williamsburg Housing Market Remains Steady in 2025

If you’ve been wondering whether we’re on the edge of another housing crash, you’re not alone. With social media feeding fear and the headlines getting louder, it’s easy to feel uncertain about making a move this year. In fact, a recent study from Clever Real Estateh found that 70% of Americans are worried about a 2025 housing crash.

But let’s hit pause on the panic button for a moment—because the data paints a very different picture. And here in Williamsburg, Virginia, the market tells a story of steady growth, more balance, and opportunity—not a freefall.

Low Inventory = No Crash

The biggest difference between now and 2008? Inventory. Back then, overbuilding and risky lending practices created a surplus of homes and a wave of foreclosures. Today, we're still playing catch-up.

Nationally, the number of active listings is on the rise—but we’re still significantly below where we were pre-2020. In March 2025, active inventory was still nearly 30% below historic norms, according to Realtor.com. That lack of supply is key. As First American’s Chief Economist Mark Fleming puts it:

There are more people than housing inventory. It’s Econ 101.

In other words, we still have more buyers than homes available. And in a market like Williamsburg—where demand continues to be strong among retirees, relocators, and downsizers alike—home values are holding firm.

Price Growth Is Slowing, Not Falling

Another key point? Home prices aren’t crashing—they’re moderating. Over the past few years, we’ve seen double-digit appreciation across many markets, including here in Greater Williamsburg. But in 2025, price growth is trending back toward normal levels, making it easier for buyers to plan and compete.

That’s actually a good thing for everyone. Slower, steadier growth helps create a more sustainable, balanced market—something we haven’t seen in a while.

As Freddie Mac recently noted:

In 2025, we expect the pace of house price appreciation to moderate . . . while still maintaining a positive trajectory.

So no, the market isn’t falling apart—it’s just finding its footing.

What This Means for Buyers and Sellers in Williamsburg

If you’ve been waiting for a sign to buy or sell, this is it. Whether you're upsizing, downsizing, or relocating, Williamsburg’s market is more welcoming than it’s been in years:

• Buyers have more inventory to choose from and less price shock.

• Sellers still benefit from steady demand and rising values—especially when homes are priced right.

As always, the most important thing is knowing what’s happening right here—not just on the national news. And that’s where I come in.

Bottom Line

Despite the headlines, the housing market isn’t on the verge of collapse. With more homes on the market and price growth easing, we’re seeing a healthier, more manageable pace—and that’s good news whether you’re buying or selling in Williamsburg.

Let’s connect to talk about what this means for you and how to navigate it confidently.