Northern Virginia Housing Market Shows Strong Growth in January 2025 with Higher Sales
and Rising Prices, According to NVAR
First January Year-Over-Year Sales Increase Since 2021
FAIRFAX, Va. (February 11, 2025) The Northern Virginia housing market started 2025 with solid
momentum, as closed sales, total dollar volume, and home prices showed notable increases
compared to the previous year, according to the Northern Virginia Association of Realtors®
(NVAR). In January 2025, 833 homes were sold across the region — an 8% increase from January 2024 — demonstrating resilience in buyer demand despite ongoing inventory challenges and marking the first time the area has seen a year-over-year sales increase in January since 2021.
“The beginning of 2025 has reaffirmed the strength of Northern Virginia’s housing market,” said
Ryan McLaughlin, CEO of NVAR. “With closed sales up and price growth remaining steady, buyers are actively engaging in the market despite fluctuating economic conditions. The fact that this is the first year-over-year sales increase we’ve seen in January since 2021 is a positive sign of renewed market momentum.”
The total sold dollar volume in January 2025 reached $698,468,219, a 19.2% year-over-year
increase. The median sold price rose to $685,000, up 5.4% compared to January 2024, while the
average sold price climbed 10.4% to $836,329. These price increases highlight the continued
competition for available homes and the desirability of Northern Virginia’s real estate market.
At the same time, inventory levels showed signs of improvement, giving buyers more options.
Active listings rose by 28.5% year-over-year to 1,261 units, and months of supply increased to 0.92 — up 25.1% from January 2024. However, new listings in January remained below the five-year average at 995 units, reflecting lingering constraints on seller activity.
“Inventory levels are increasing, which is a positive sign for buyers who have faced a highly
competitive market,” said Rob Carney, NVAR President-Elect, TTR Sotheby’s International Realty.
“Yet, with new listings still below historical averages, sellers remain in a strong position, especially as demand continues to push prices higher.”
One key market shift was the decline in new pending sales, which fell 9.7% compared to January 2024, indicating that some buyers may be adjusting to changing affordability conditions. Meanwhile, homes spent an average of 31 days on the market, a 6.9% increase from the previous year — giving buyers a slightly longer window to make purchasing decisions.
“While rising inventory is a welcome trend, the market remains dynamic,” added McLaughlin. “With steady price appreciation and strong overall demand, Northern Virginia continues to be an attractive destination for homeownership. As we move further into 2025, we anticipate an active spring market with opportunities for both buyers and sellers.”
The regional growth is expected to continue, according to NVAR’s recent 2025 Housing
Forecast, produced in conjunction with the George Mason University Center for Regional
Analysis. The Northern Virginia housing market will keep strengthening with moderate price
increases and higher levels of market activity. Northern Virginia’s outlook is similar to the national 2025 housing forecast that predicts the worst of the housing inventory shortage is ending, mortgage rates are stabilizing, and job additions are continuing.
