According to Arthur's Twitter account, more than half is completed.
But it looks like Arthur deleted his last tweets for a reason.

Woohoo! I can't wait for this game to go live!

I didn't Know the Tweet was deleted but thanks anyway

The newest post about VF3 can be found here, but please leave any comments in this thread.

Still waiting for virtual families three to come out, ldw needs to update the status of v3

I've been waiting for virtual families 3 for so long, I really cannot wait anymore! Arthur needs to update his followers so we know what's happening! I just hope it gets released before February! Also, will the game have a feature where the children go to school? And please can there be like sleepovers so you get a little tab saying "child's friends has come for a sleepover, accept or decline" THAT WOULD BE AMAZINGGGG

Did you read Heather's previous post on this thread?

??

Heather posted a link to my update on VF3 a few posts before yours.

We are working hard on VF3, but it won't be out by next month. We encountered unexpected delays that have put us behind schedule, and it's not finished yet, let alone in beta testing. We wish that weren't the case, but it couldn't be helped. We will try to get the Previews Page updated when we are more sure when VF3 will be ready.

For those of you who have found LDW games recently, it might help to know that there are only a handful of us to do all the work involved with developing and supporting our games. We just don't have the resources that the big game studios have to keep things on track when life throws us a curve.

Thank you for the updates! No rush, we don't mind waiting, it's guaranteed to be good all LDW games are so wonderfully developed and however long it takes, we'll all be here