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Northern Virginia Housing Market Analysis

The housing landscape in Northern Virginia has notably diverged from national market patterns, as reflected by the latest data. In July 2025, while the general U.S. real estate market exhibited signs of cooling, Northern Virginia's housing market continued to exhibit upward price trends amid a growing inventory.

According to the Northern Virginia Association of Realtors® (NVAR), the number of homes sold in this region reached 1,612 transactions, marking a decrease of 1.6% from the previous year. In contrast, national sales figures improved slightly, reflecting a 0.8% increase with 4.01 million transactions. This disparity indicates a unique local market dynamic wherein Northern Virginia's appeal continues to attract buyers, despite an environment of moderating national conditions.

NVAR CEO Ryan McLaughlin emphasized this stabilization in the local market, stating, “While the national market is showing signs of cooling, Northern Virginia's market is better described as stabilizing.” Here, the number of home sales has dipped, yet the average sold price has increased significantly. As a testament to this movement, the median home price rose to an impressive $760,073, a 3.4% increase from the previous year. This figure starkly contrasts with the national median increase, which stands at a mere 0.2%, highlighting the region's status as one of America's most competitive housing markets.

Another notable feature of the Northern Virginia market is its days on market, which averaged 20 days in July—a 25% increase from the previous year. However, when juxtaposed against national averages—where homes took 28 days to sell—a critical difference emerges: the quick turnover in Northern Virginia reinforces ongoing buyer interest amid slight market shifts.

Mary Bowen, an NVAR Board Member from Long & Foster Real Estate, underscores that while properties are taking longer to sell, demand persists. She noted, “Buyers may have a bit more time to make decisions... yet desirable properties continue to move quickly.” This reflects a competitive landscape for sellers, even in the face of market adjustments.

Significantly, the inventory of available homes increased substantially within the region, with active listings rising 43.4% to 2,530 units. This growth outpaces the broader national inventory growth, which saw a 15.7% increase to 1.55 million homes. Despite this expansion, the local market inventory remains insufficiently balanced, indicative of the ongoing demand.

When examining the supply metrics, Northern Virginia maintains a 1.9-month inventory of homes, a 39.4% increase year over year, but still highlights a scarcity relative to what is considered optimal for a balanced market. Nationally, the supply of homes expanded to 4.6 months, underscoring how supply constraints remain more stringent in the Northern Virginia region.

Looking ahead, McLaughlin predicts that, “While inventory is beginning to open up in Northern Virginia, the reality is that demand continues to run ahead of supply, which is why prices remain elevated.” Factors contributing to this robust market include consistent population growth, the presence of quality educational institutions, and well-established urban centers within the region. As new transportation options and community investments continue to emerge, the long-term value of real estate in Northern Virginia becomes increasingly attractive to potential buyers.

Overview of July 2025 in Northern Virginia

• - Closed Sales: 1,612 (1.6% decrease from July 2024)
• - Total Sales Volume: $1.41B (2.6% increase from July 2024)
• - Average Selling Price: $872,753 (up 2.9% from July 2024)
• - New Pending Sales: 1,459 (2.8% increase from July 2024)
• - Active Listings: 2,530 (43.4% increase)
• - Average Days on Market: 20 days (25% increase)
• - Months of Supply: 1.9 (39.4% increase)

With these trends, it is evident that Northern Virginia's housing market remains a unique microcosm, resilient in the face of broader national trends.

For the latest updates and insights on the housing market, visit the Northern Virginia Association of Realtors® at nvar.com.