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Northern Virginia Real Estate Market Defies National Trends

In August 2025, the housing market in Northern Virginia has demonstrated remarkable strength, exhibiting significant growth in home sales, prices, and total volume compared to the previous year. The region surpassed the national average for home sales, reinforcing its status as a key player in the real estate sector despite persistent challenges linked to inventory shortages and rising days on the market.

According to the Northern Virginia Association of Realtors® (NVAR), there were 1,439 closed sales in August 2025, marking a 2.0% increase from the same month in 2024. In stark contrast, national home sales reached 4.0 million for a year-over-year uptick of 1.8%. This performance illustrates a significant trend of resilience in Northern Virginia, where local demand for homes remains robust.

NVAR CEO Ryan McLaughlin commented on the findings: "It's exciting to see Northern Virginia's housing market align not only with national trends but to slightly exceed them. Closing over 1,400 sales in August reflects genuine momentum, especially given the affordability challenges we face in the area. This indicates a strong demand for homes, with buyers being resourceful in a competitive market."

The median home price in Northern Virginia was recorded at $750,201 in August 2025, representing a 1.7% increase year-over-year. For context, the national median reached $422,600, showing a slightly higher growth of 2.0%. Although Northern Virginia's prices are elevated, even amid rising costs, sellers have continued to benefit from steady price growth, according to NVAR Board Member Sherry Rahnama from RE/MAX Executives. She pointed out that local buyers are navigating the difficult balance between higher costs and the potential long-term value of owning property in this region.

Interestingly, inventory levels within Northern Virginia took an unexpected turn. Active listings soared by 36.4% year-over-year, amounting to 2,475 units in August 2025. However, the months of supply remained critically low at just 1.81 months, substantially lower than the national average of 4.6 months. Nationally, the inventory of homes reached 1.53 million, which represented an 11.7% increase compared to August of the previous year. This discrepancy indicates that even though listing activities are on the rise, demand continues to outpace supply in Northern Virginia.

On a related note, the average number of days homes spent on the market has shown a notable increase. Homes in Northern Virginia averaged 26 days on the market in August 2025, a robust 44.4% surge from the previous year. By comparison, the national average was slightly higher at 31 days but reported a more tempered increase of 19.2%. This data suggests that, while buyers may enjoy a bit of breathing room compared to last year, the pace in Northern Virginia remains significantly brisk relative to national trends.

As the housing market transitions into the fall of 2025, Northern Virginia is expected to experience sustained demand amid affordability hurdles and lengthier sales cycles. The uptick in inventory might provide some reprieve for buyers; however, supply levels are still significantly below the national metrics. These conditions foretell that while the market demonstrates stability, both buyers and sellers should approach the landscape with caution and strategic insight as they navigate the upcoming months.

Background

The Northern Virginia Association of Realtors® (NVAR) provides comprehensive insights into home sales activities across various regions, including Fairfax and Arlington counties along with the city of Alexandria and neighboring areas. Below are statistics reflecting August 2025's regional home sales compared to August 2024:

• - Closed sales: 1,439 units (up 2.0%)
• - Volume sold: $1,276,766,754 (up 5.9%)
• - Average sold price: $879,942 (up 2.5%)
• - New pending sales: 1,403 units (up 9.6%)
• - Active listings: 2,475 units (up 36.4%)
• - Average days on market: 26 days (up 44.4%)
• - Months of supply: 1.81 (up 31.2%)

To learn more about the Northern Virginia housing market, visit nvar.com/Marketstats.