Northern Virginia Housing Market Ends 2025 with Resilience and Measured Optimism
Sales trends, pricing, and inventory reflect a recalibrating market aligned with long-term norms
FAIRFAX, Va. (January 13, 2026) As the Northern Virginia housing market closed the books on 2025, the numbers tell a story of balance, resilience, and measured optimism, according to the Northern Virginia Association of Realtors® (NVAR).
The total number of units sold in 2025 reached 16,610, representing a 1.55% increase from 2024, when 16,357 units were sold. The sold dollar volume for 2025 saw an even more significant jump, increasing by 6.04% to $14,676,652,428. Median sold prices also rose, with the 2025 median hitting $750,000, up 2.78% from $729,710 in 2024. The full year data underscores a market adjusting to new conditions and gradually returning to long-term norms.
While prices fluctuated month to month, home values closed the year above 2024 levels, reflecting more moderate growth than in recent years. Housing supply expanded as more listings entered the market, giving buyers increased options and slightly reducing the intensity of competition. At the same time, higher mortgage rates and ongoing affordability concerns influenced buyer activity, contributing to mixed sales performance and longer time on market for some homes. Even with these shifts, Northern Virginia saw conditions gradually trending toward greater balance as the year progressed.
“The past twelve months reflected a period of recalibration, as conditions began aligning more closely with long-term norms,” said NVAR CEO Ryan McLaughlin. “Additional listings helped ease some competitive strain, creating space for more thoughtful decisions on both sides of the transaction. Taken together, these dynamics suggest an environment that leaves the region better positioned for steadier performance moving forward.”
In the final month leading into 2026, Northern Virginia’s housing market showed mixed signals, with modest year-over-year price growth, slower sales activity, and inventory remaining constrained despite increasing over the same time last year. The median sold price in December 2025 was $715,000, up 2.1%, compared to December 2024. The average days on market was 35 days in December 2025, a 29.6% increase from December 2024’s 27 days. Inventory continued to be tight, with the months of supply in December 2025 at 1.04, up from 0.8 in December 2024. The volume sold in December 2025 was $1,020,702,951, a 6.4% increase compared to December 2024. The number of closed sales in December 2025 was 1,197 units. This was a 5.2% year-over-year increase. Collectively, December’s performance aligned with the broader patterns seen throughout 2025.
“December’s numbers highlight a market in transition,” said NVAR President Rob Carney, TTR Sotheby’s International Realty. “While home prices remained above last year’s levels, sales activity slowed and inventory levels are measurably rising, underscoring the need for buyers and sellers to plan carefully and work closely with Realtors® to navigate these shifting conditions. Overall, home buyers should expect more favorable opportunities in 2026.”
The 2025 housing market mirrors NVAR’s 2026 Housing Market Forecast, produced in conjunction with the George Mason University Center for Regional Analysis, which points to a market continuing to find balance.
BACKGROUND
The Northern Virginia Association of Realtors® reports on home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax, and Falls Church and the towns of Vienna, Herndon, and Clifton. Below are December 2025 regional home sales compared to November 2024 for Northern Virginia, with data derived from Bright MLS as of January 9, 2026 (total sales and listings may not include garage/parking spaces):
- The number of closed sales in December 2025 was 1,197 units. This was a 5.2% increase compared to December 2024.
- The volume sold in December 2025 was $1,020,702,951. This was a 6.4% increase compared to December 2024.
- The median sold price in December 2025 was $715,000. This was up 2.1% compared to December 2024.
- The number of new pending sales in December 2025 was 818 units. This was up 1.1% compared to December 2024.
- The number of active listings in December 2025 was 1,438 units. This number was up 31.7% compared to December 2024.
- The average days on market was 35 days in December 2025. This was up 29.6% compared to December 2024.
- Months of supply of inventory in December 2025 was 1.04. This was up 29.7% compared to December 2024.
Read more about the NVAR regional housing market at nvar.com/Marketstats.
