Northern Virginia Housing Market Cools Slightly as Inventory Grows
Sales volume and prices remain steady, but longer market times and rising supply reflect
a more cautious buyer landscape
FAIRFAX, Va. (August 12, 2025) The Northern Virginia housing market in July 2025 showed
signs of moderation compared to the same period last year, according to the Northern Virginia
Association of Realtors® (NVAR). While total sold dollar volume and median home prices saw
modest increases year-over-year, growing inventory and extended days on market suggest
shifting dynamics in how buyers and sellers are approaching today’s real estate environment.
Total sold dollar volume reached just over $1.41 billion in July, up 2.6% from July 2024, and the
number of units sold stood at 1,612 — a 1.6% decrease from the previous year. The region’s
median sold price rose 3.4% year-over-year to $760,073, reflecting steady buyer interest — but
at a more measured level than what was seen during the peak pandemic-era housing market.
“We’re seeing a market that is recalibrating,” said NVAR CEO Ryan McLaughlin. “Buyers are
still active, and the market remains strong, but at a more measured intensity than in recent
years. This shift is influencing both prices and expectations for buyers and sellers alike.”
The number of active listings rose sharply to 2,530 in July of this year, a 43.4% increase
compared to July 2024. Months of supply also increased to 1.9, up 39.4% year-over-year,
signaling a loosening of the inventory constraints that have defined much of the past few years.
Meanwhile, the average days on market climbed to 20 days, a 25% increase, indicating that
homes are sitting longer as buyers weigh their options.
“After several years of tight inventory and rapid sales, what we’re seeing now is a more
balanced environment,” McLaughlin added. “Demand remains strong, and today’s market
rewards sellers who price strategically and stay attuned to buyer expectations.”
The July data paints a picture of a market in transition. While the fundamentals remain relatively strong, with prices and overall volume holding steady, the increase in supply and shift in buyer behavior suggest a more tempered real estate climate heading into the fall.
“This shift is a sign that the market is normalizing,” said NVAR President Casey Menish,
Pearson Smith Realty. “Buyers are approaching their decisions more carefully, and sellers are
adjusting to longer timelines and increased competition. We’re moving away from extremes, and that’s a healthy development for long-term market stability,” she said.
