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Northern Virginia's Housing Market Overview at 2025's End

As the curtains fell on 2025, the Northern Virginia housing market emerged as a stronghold amid a turbulent national landscape. While many regions experienced modest gains and improved inventory levels, Northern Virginia displayed a remarkable differentiation in its real estate performance, characterized by notable price growth and relentless competition among buyers.

According to the latest data from the Northern Virginia Association of Realtors® (NVAR), the median price of homes sold in the area climbed to $715,000 by December 2025, marking a 2.1% increase compared to the same month a year prior. This contrasts sharply with the national figure, where the median existing home sales price rose only 0.4% to reach $405,400, highlighting Northern Virginia's allure as a desirable market for homebuyers. NVAR CEO Ryan McLaughlin emphasized the area's robust demand, stating, "Northern Virginia's price growth continues to outpace the national market because demand here remains fundamentally strong."

The tightness of the market is further underscored by inventory trends. December 2025 saw Northern Virginia's supply increase slightly to 1.04 months, up from just 0.8 months a year earlier, yet remained considerably low compared to the national inventory, which stood at 1.18 million units, equating to 3.3 months of supply. This positional advantage emphasizes a localized market that, despite insufficient inventory, is making gradual strides toward equilibrium.

Interestingly, Northern Virginia recorded 1,197 closed sales in December, showcasing a 5.2% annual increase — a figure that more than triples the national growth rate of 1.4%, resulting in a total of 4.35 million home sales across the United States. McLaughlin elaborated on this dichotomy, expressing that while inventory may be limited, the active engagement of buyers indicates a market fervently navigating the complexities of affordability and interest rates amid a keen desire for homeownership.

As the average number of days on the market increased to 35 in December, up 29.6% from the previous year, it suggests a slow yet steady market adjustment rather than a downturn. Nationally, homes sold after a median of 39 days on the market, which is reflective of a broader trend where buyers are taking more time to decide while still showing a sustained interest in purchasing.

These shifts in market behavior have drawn attention to the critical supply-and-demand dynamics at play, driving up expectations for home sellers while buyers become increasingly selective in their choices. McLaughlin noted, "Longer days on market signal normalization. Buyers are being more selective, and sellers are recalibrating expectations. That balance ultimately contributes to a healthier housing market."

Looking forward into 2026, Northern Virginia remains strategically poised for further competitiveness. With a vibrant mix of pricing resilience and escalating closed sales, the market is indicative of a unique trajectory that diverges from the national average — driven by the area's economic stability and vibrant community.

As we usher in the new year, NVAR's outlook remains optimistic, revealing that the region is not just adjusting but is set to thrive under its own set of robust dynamics. "The market is adjusting, but it's doing so with fundamentals that remain solid and competitive," McLaughlin concluded, reinforcing Northern Virginia's position as a premier marketplace in the realms of real estate.