As we step into 2026, it’s the perfect time to look back at how the Lynchburg real estate market performed in 2025. While much of the country grappled with slowdowns, higher rates, and affordability concerns, Lynchburg and the surrounding areas stayed strong and steady—proving once again that local fundamentals matter most.

Lynchburg Defied National Trends in 2025

Here’s a breakdown of the key numbers that highlight our market’s resilience:

• Interest rates improved: Conventional rate averages for the year dropped from 6.85% to 6.57%, with the national 30-year average now at 6.20% — well below the 50-year historical average of 7.7%.

• Home prices rose modestly: The median price increased 3.5%, reaching an annual median of $300,000. Even better — 2026 is starting hot with the highest 90-day median on record at $309,700.

• Affordability remains excellent: Based on the latest census data for workforce households likely to buy, the front-end ratio sits at just 25% of median income — exactly the sweet spot for healthy wealth-building (anything over 30% is considered “house poor”).

• Sales stayed brisk: The average home sold in 41 days, but half sold in under 17 days — that’s 1,825 homes accepting offers in less than two and a half weeks! This means that buyers still need to become pre-approved prior to submitting an offer.

• Not all price ranges moved the same: The $200k segment continues to shrink (down to 30% of the market from 34% in 2023), while $300k+ homes gained ground. Entry-level $100k homes saw the biggest drop year-over-year – there were 21% fewer of those.

• Rents climbed again: Average three-bedroom rent hit $1,714, with the 75th percentile at $1,904. This is for a basic 3-bedroom home with at least 1.5 baths.

No Bubble Here

A lot of people still worry about 2008-style crashes, but the data shows a completely different picture. That crash was driven by subprime lending — something simply not present in today’s purchases. Strong credit, solid down payments, and responsible underwriting dominate our market.

The Bottom Line for 2026

Homes appreciated 3.5% last year while cash sitting in low-yield savings or under the mattress quietly lost purchasing power to inflation and rising values.

If you’ve been waiting for the “perfect” time, remember: the best time to buy a home is when you’re ready and the fundamentals are strong (and right now in Lynchburg, they are). History proves this: those that “time” the market miss the time of their lives.

Wishing you a blessed and joyful 2026!