Closing Out 2025: Market Challenges & Real Opportunities for Rockbridge County Buyers

If you're a homebuyer looking in Rockbridge County, Lexington, or Buena Vista this winter, or thinking ahead to early 2026, you might be wondering if now is really a good time to buy. It’s a fair question, and one I hear often.

While today’s market has its challenges, it also offers some unique opportunities – especially if you go in with the right mindset and strategy. Here are five key things to consider if you're thinking about buying a home this season.

1. Interest rates are still high – but there's hope

Right now, interest rates are hovering between 6.75% and just over 7%, depending on your loan type, credit score, down payment, and other financial details. Naturally, this affects what kind of home you can afford and might even prevent you from making a lateral move if you’re already a homeowner.

That said, there’s hope on the horizon. Most forecasts predict rates will come down, which could improve both affordability and inventory. If you’re planning ahead, this could open new doors for you soon.

2. Inventory is tight, but options are coming

It’s no secret that inventory in Rockbridge County and Lexington remains low. Unlike other markets, we don't have much new construction to fill the gap, which can make the search process feel frustrating.

But there are upsides:

• Homes are sitting on the market a little longer, giving you time to evaluate.

• There’s more negotiation power – from pricing to repairs and concessions.

• We're seeing more off-market opportunities as sellers look to test the waters before going live.

If you're flexible on your must-haves or timeline, you may find a great fit by being patient and creative.

3. Pricing is up, but sellers are more flexible

Home prices rose about 4% over the past year, which has many buyers feeling stretched. Between higher rates and higher prices, it's easy to feel like your dollar doesn't go as far as you'd like.

But here’s the good news: sellers are becoming more open to negotiating. That includes things like:

• Interest rate buy-downs

• Closing cost concessions

• Making repairs or updates before you move in

So, while prices are higher, you may still get more value than you expect with the right offer strategy.

4. Buyers want move-in ready – but consider sweat equity

Move-in-ready homes are in demand. If you’re going to pay current prices, you likely want something turnkey,  and you're not alone. But here’s a little encouragement: don’t overlook homes that need a little TLC.

Homes with cosmetic issues or minor updates needed offer a chance to build sweat equity quickly, especially as the market starts to shift toward a more balanced state. A bit of elbow grease now could mean strong equity gains in the near future.

5. Adjustable-rate mortgages are worth exploring

With limited inventory and expected rate drops on the horizon, adjustable-rate mortgages (ARMs) can be a smart short-term solution. Many buyers are using ARMs to:

• Get into a home they love now

• Take advantage of a lower entry interest rate

• Plan to refinance later once rates drop

ARMs aren't as scary as they sound, and we work with several great lenders who offer flexible and buyer-friendly options. It's all about finding the right fit for your situation.

How’s the market specifically for buyers in Rockbridge County?

It's a mixed bag, but the opportunities are real. Yes, rates and prices are a factor, but there’s also room to negotiate, plan strategically, and even snag off-market gems. If you’re feeling the pull to buy, now might be the right time to start the process.

The key? Partnering with the right Realtor who knows how to get creative, advocate for your goals, and guide you through every step.

If you’re ready to start your home search, let's talk about what’s possible.