#United States #Housing Market #Fairfax #NVAR #Northern Virginia

Northern Virginia's Competitive Real Estate Market

Recent data from the Northern Virginia Association of Realtors® (NVAR) highlights the ongoing competitiveness of the housing market in Northern Virginia. In January 2025, home prices increased at a pace surpassing the national average despite a slight rise in housing inventory. The median sale price in the region reached $685,000, representing a 5.4% increase compared to January 2024, while the average sale price surged to $836,329, showing a notable 10.4% rise.

In contrast, the national median existing-home price climbed to $396,900, reflecting a 4.8% increase, marking the nineteenth consecutive month of price growth across the country. This strong performance indicates a robust real estate landscape not only locally in Northern Virginia but also on a broader national scale.

According to NVAR's report, inventory levels have seen an uptick both locally and nationally. Active listings in Northern Virginia increased by an impressive 28.5% year-over-year, amounting to 1,261 units. The months of supply also rose to 0.92, a 25.1% increase from the same time last year, suggesting a movement toward more typical inventory levels reminiscent of pre-pandemic conditions. On a national level, unsold existing home inventory grew 3.5% from the previous month, totaling 1.18 million units, which translates to a supply of 3.5 months at the current sales pace.

Ryan McLaughlin, CEO of NVAR, attributes the continuous demand in Northern Virginia to a combination of robust local fundamentals. He emphasized, "Even with a modest increase in inventory, buyer interest remains strong, keeping prices on an upward trajectory. The appeal of Northern Virginia as a resilient real estate market stems from several factors: significant job growth, proximity to Washington, DC, and a diversified economy that maintains demand."

In terms of overall market activity, existing-home sales nationally recorded a modest 2.0% year-over-year increase, marking the fourth consecutive month of sales growth. However, the Northern Virginia market outperformed this statistic, with closed sales rising by 8% compared to the previous year. Interestingly, homes in the region spent an average of 31 days on the market—while this is a 6.9% increase from January 2024, it remains considerably below the national average of 41 days.

Mary Bowen, a member of the NVAR Board of Directors from Long & Foster Real Estate, commented on the unique resilience of the Northern Virginia market. "Despite fluctuations observed in various other regions, Northern Virginia can sustain growth. Our homes are selling faster than the national average, and the year-on-year growth in closed sales is a testament to an active market that continues to shine amid national trends. This consistent performance underscores the demand and investment potential in our area."

Looking ahead, NVAR's recent housing forecast, produced with the George Mason University Center for Regional Analysis, suggests that this regional growth trend will persist. Expectations are for moderate price increases and heightened market activities throughout 2025. The outlook for Northern Virginia mirrors national predictions that the inventory shortage is easing, mortgage rates are stabilizing, and job growth is ongoing. McLaughlin remarked, "Northern Virginia's strong market dynamics and persistent demand solidify its status as one of the leading locations nationally. As we navigate potential changes in the marketplace, both buyers and sellers must stay informed and take proactive steps with their real estate professionals to ensure success."

Market Background

The NVAR provides detailed insights on home sales for areas including Fairfax and Arlington counties along with cities like Alexandria, Fairfax, and Falls Church. For January 2025, several key statistics reflect the performance of the Northern Virginia market compared to January 2024:

• - Closed sales totaled 833 units, reflecting an 8% increase.
• - The total volume sold reached $698,468,219, an increase of 19.2%.
• - New pending sales for January amounted to 933 units, which was down 9.7%.
• - Active listings totaled 1,261 units, representing a 28.5% year-over-year increase.
• - New listings observed were 995 units, below the five-year average of 1,315.

These figures underscore not only a competitive landscape but also North Virginia's unique position within the real estate market. The NVAR continues to follow these trends actively, offering valuable resources and insights for both buyers and sellers in the region.

For further information on the market statistics and real estate commentary, visit nvar.com/Marketstats.