Northern Virginia Housing Market Shows Mixed Signals, But Outpaces National Trends in Key Areas

May home sales drop more steeply than national average, but prices and speed signal continued strength

FAIRFAX, Va. (June 24, 2025) The Northern Virginia housing market showed steadfast resilience in May 2025, with home prices continuing to climb and properties selling far faster than the national average, says the Northern Virginia Association of Realtors® (NVAR). While national housing data signals a broader slowdown, Northern Virginia appears to be entering a more balanced but still competitive phase, with some signs of cooling alongside continued strengths.

Despite signs of resilience in pricing and pace, Northern Virginia is not immune to the broader housing slowdown. Closed sales in Northern Virginia totaled 1,764 units in May, a 4.2% drop compared to the same month last year. Nationally, existing-home sales declined by only 0.7% to 4.03 million units. While both markets are reacting to persistent affordability challenges and elevated interest rates, Northern Virginia’s price appreciation and brisk market pace suggest underlying strength.

The median sold price in the region rose 3.9% to $789,500, compared to a 1.3% increase nationally, where the median price reached $422,800. In addition, homes in Northern Virginia sold in 15 days on average, nearly two weeks faster than the national average of 27 days.

“The national housing story is one of increasing supply and slowing demand, but Northern Virginia continues to tell its own story,” said NVAR CEO Ryan McLaughlin. “Prices here are rising more steadily, and homes are moving faster than the national average. That speaks volumes about the long-term desirability of our region.”

Inventory levels also highlight a divergence. While national housing supply increased to 4.6 months, Northern Virginia remained much tighter at 1.96 months of supply, despite a 50% year-over-year surge in active listings to 2,636 units. This inventory boost is providing more options for buyers but has not shifted the market fully away from sellers. The steep jump in inventory reflects growing seller confidence and signals that more homeowners are re-entering the market after holding off during peak interest rate volatility. However, the region’s strong demand is absorbing much of this new supply, keeping conditions competitive.

“We’re seeing a much-needed increase in inventory, which is good news for buyers, but we’re not flooded with excess supply like some markets,” McLaughlin said. “Northern Virginia buyers still have to act decisively on the right homes. This isn’t a market of hesitations; it’s one of opportunities.”

With more choices for buyers, continued price strength, and a pace well ahead of national averages, Northern Virginia remains one of the country’s most dynamic and resilient real estate markets. Competitively priced homes in sought-after neighborhoods continue to move quickly, underscoring the market’s durability even as conditions normalize.

“As we head into the summer season, the Northern Virginia housing market is showing signs of maturity — not volatility,” McLaughlin added. “It’s more balanced than it was a year ago, and that’s healthy. Buyers and sellers are adjusting expectations and finding common ground.”

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

• The number of closed sales in May 2025 was 1,764 units. This was a 4.2% decrease compared to May 2024.  
• The volume sold in May 2025 was $1,561,028,936. This was a 1.0% decrease compared to May 2024.
• The average sold price was $891,185 in May 2025. This was up 1.3% compared to May 2024.
• The number of new pending sales in May 2025 was 1,897 units. This was up 9.5% compared to May 2024.  
• The number of active listings in May 2025 was 2,636 units. This number was up 50.0% compared to May 2024.
• The number of new listings in May 2025 was 1,884 units. This number was up 1.5% compared to May 2024.

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

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

May Housing Data: Click here.

Regional Jurisdiction Infographic: Click here.

NVAR Region Infographic: Click here.

NVAR 2023 Housing Economic Impact Report: Click here.

NVAR 2025 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. nvar.com. 

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