“The national market is showing signs of cooling, but Northern Virginia’s market is better described as stabilizing,” said NVAR CEO Ryan McLaughlin. “We’re seeing more inventory and a modest slowdown in sales, but price growth and buyer activity remain stronger than the national picture. That balance keeps our region competitive even as conditions begin to normalize.”

In July, Northern Virginia recorded 1,612 closed sales, a 1.6% decrease from July 2024. Nationally, however, sales moved in the opposite direction, with 4.01 million transactions, a 0.8% increase year-over-year. This divergence reflects the limited supply and higher price points that still define the local market.

Price trends were even more telling. The median sold price in Northern Virginia climbed to $760,073, up 3.4% from last year, while the US median edged up only 0.2% to $422,400. Homebuyers in Northern Virginia continue to pay nearly double the national average, underscoring the region’s long-standing status as one of the country’s most competitive and desirable housing markets.

The pace of the market also shows how local conditions differ. Northern Virginia homes averaged 20 days on the market in July, up 25% from last year. Nationally, homes stayed on the market longer — 28 days on average compared to 24 in 2024. While both markets saw days-on-market rise, the quicker turnover in Northern Virginia illustrates persistent buyer urgency even as conditions loosen slightly.

“Homes are taking a little longer to sell than they did last year, but the demand is still there,” said NVAR Board Member Mary Bowen, Long & Foster Real Estate. “Buyers may have a bit more time to make decisions and, in some cases, add more negotiable terms to the offer, yet desirable properties continue to move quickly. For sellers, that means the market is still competitive, even if it’s showing early signs of stabilizing.”

Inventory expanded significantly at both the local and national levels, but Northern Virginia’s growth was sharper. Active listings in the region rose 43.4% to 2,530 units, compared to a 15.7% national increase in total listings to 1.55 million homes — the highest US inventory since the 2020 lockdowns. This local surge is giving buyers more choice but still falls short of true balance.

The difference between the national and local market becomes even clearer when measuring supply. In July, Northern Virginia recorded 1.9 months of supply — a 39.4% increase from last year but still well short of the level considered a balanced market. Nationally, supply ticked up to 4.6 months from 4 months in 2024, a figure that underscores just how much tighter conditions remain locally. Even with added inventory, Northern Virginia’s market is far more competitive than the US overall.

“While inventory is beginning to open up in Northern Virginia, the reality is that demand continues to run ahead of supply, which is why prices remain elevated,” said McLaughlin. “Our region’s housing market stands out nationally because of the region’s steady population growth, strong demand fueled by world-class schools and universities, and the vibrancy of its urban centers. With new transit connections and continued investment in local communities, buyers see long-term value here, keeping competition high even as inventory inches upward.”

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 July 2025 regional home sales compared to July 2024 for Northern Virginia, with data derived from Bright MLS as of August 8, 2025 (total sales and listings may not include garage/parking spaces):

• The number of closed sales in July 2025 was 1,612 units. This was down 1.6% compared to July 2024.
• The volume sold in July 2025 reached $1.41B, marking a 2.6% increase over July 2024.
• The average sold price was $872,753, up 2.9% from July 2024.
• The number of new pending sales in July 2025 increased to 1,459 units — a 2.8% increase compared to July 2024.
• The number of active listings in July 2025 surged to 2,530 units — a 43.4% increase, the largest year-over-year jump in the dataset.
• Average days on market increased to 20 days — a 25% increase over the previous year.
• The months of supply of inventory in July 2025 was 1.9. This was up 39.4% compared to July 2024.

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

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