Northern Virginia’s Housing Market Outpaces National Sales

Inventory Remains Tighter than U.S. Despite Increase

FAIRFAX, Va (July 24, 2025) While the national housing market showed little movement in June 2025, the Northern Virginia region experienced a marked increase in sales activity and available inventory, signaling early signs of market recalibration, though not without challenges, according to the Northern Virginia Association of Realtors (NVAR).

Closed sales in Northern Virginia rose 13.6% year-over-year to 1,847 units in June, while national home sales held steady at 3.9 million units — showing no year-over-year change. The sharp contrast in growth rates underscores a more active recovery in the local market compared to the national landscape. This growth suggests renewed buyer activity in the region, likely fueled by more listings and less urgency to compete.

“We’ve seen some pent-up demand begin to move in June, but buyers are proceeding with caution,” said NVAR CEO Ryan McLaughlin. “It’s a shift toward a more sustainable pace, as supply begins to catch up and pressure eases slightly.”

Home prices in Northern Virginia dipped 1.3% year-over-year to a median of $770,000, while national prices climbed 2.0% to a record $435,300. The price drop in Northern Virginia, though modest, reflects market sensitivity in a high-cost region where affordability remains a concern.

“Price trends in our region are a reflection of buyers reassessing what they can afford,” McLaughlin said. “We’re seeing some softening in pricing, particularly in segments that had accelerated rapidly in recent years, and that’s creating opportunities, though affordability is still a real barrier for many.”

One of the clearest changes this June was the increase in housing supply. Active listings in Northern Virginia climbed 52.7% to 2,512 units compared to June 2024. Months of supply rose to 1.84, up 46.5% year-over-year. Nationally, inventory reached 4.7 months, a healthier level compared to 4.0 months a year ago. While Northern Virginia’s market remains tighter than the national average, the growth in supply is a welcome development.

“It’s encouraging to see more listings coming online, but inventory remains below balanced levels,” said NVAR President-Elect Rob Carney, TTR Sotheby's International Realty. “The upside is that buyers have more room to make thoughtful decisions. The downside is that affordability hasn’t fully caught up with what’s available.”

Homes in Northern Virginia spent an average of 20 days on the market in June, an increase of 42.9% from last year. Nationally, the median days on market was 53, up 10.4%. Although homes in the Northern Virginia region still move relatively quickly, the uptick in time on market suggests buyers are taking a more cautious, strategic approach.

“Sellers are adjusting to a slower timeline, and buyers are taking the time to evaluate their options," said McLaughlin. “It’s a more balanced dynamic, but it’s still a challenging environment, especially for first-time buyers.”

Northern Virginia’s housing market is not immune to national headwinds, but it is showing early signs of recovery — fueled by increased inventory and more realistic pricing. As the region moves through the second half of the year, improvement in affordability and supply will be key to sustaining momentum.

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 June 2025 regional home sales compared to June 2024 for Northern Virginia, with data derived from Bright MLS as of July 9, 2025 (total sales and listings may not include garage/parking spaces):

• The number of closed sales in June 2025 was 1,847 units. This was a 13.6% increase compared to June 2024.  
• The volume sold in June 2025 was $1,640,647,044. This was a 15.2% increase compared to June 2024.
• The average sold price was $889,295 in June 2025. This was down 0.1% compared to June 2024.
• The number of new pending sales in June 2025 was 1,677 units. This was down 0.5% from June 2024.  
• The number of active listings in June 2025 was 2,512 units. This number was up 52.7% compared to June 2024.
• The number of new listings in June 2025 was 1,567 units. This number was up 1.8% compared to June 2024.

Read more about the NVAR regional housing market at nvar.com/Marketstats.

NVAR Charts, Graphs, Social Media for June 2025 NVAR Housing Stats  

June Housing Data: Click here.

Regional Jurisdiction Infographic: Click here.

NVAR Region Infographic: Click here.

NVAR 2023 Housing Economic Impact Report: Click here.

NVAR 2025 Mid-Year Housing Forecast Update: Click here.

These links are accessible from the Market Stats page here: Click here.

About NVAR

The Northern Virginia Association of Realtors® (NVAR) serves as the voice of real estate in the Greater Northern Virginia Region. NVAR is dedicated to enhancing Realtor® success by delivering exceptional value, driving innovation, and impacting the industry. Headquartered in Fairfax, Virginia, NVAR supports its 12,000 members with essential resources, including industry education, advocacy, networking, and professional development opportunities. The Association is committed to promoting ethical practices and excellence in real estate. It advocates on behalf of homebuyers, sellers, renters, and commercial tenants who are directly affected by local, state, and federal policy decisions impacting affordability, property rights, and quality of life. NVAR strives to elevate the standards of the real estate industry and to contribute to the overall growth and prosperity of the Washington DC Metropolitan Area and beyond.

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