Northern Virginia Home Prices Outpace National Growth as Market Remains Competitive, Reports NVAR

Time on Market Considerably Lower than National Average

FAIRFAX, Va., Feb. 25, 2025 /PRNewswire/ -- January 2025 home prices in Northern Virginia rose at a stronger pace than the national average despite a modest increase in inventory, according to the Northern Virginia Association of Realtors® (NVAR). The median sold price rose to $685,000, up 5.4% compared to January 2024, while the average sold price climbed 10.4% to $836,329. By contrast, the national median existing-home price rose 4.8% to $396,900, marking the nineteenth consecutive month of national price growth.

While home prices remain elevated, inventory levels have increased both locally and nationally. Active listings in the Northern Virginia region rose by 28.5% year-over-year to 1,261 units, and months of supply increased to 0.92 — up 25.1% from January 2024. The current trends suggest a return to more typical inventory levels, similar to those observed before the pandemic-induced market fluctuations. Nationally, the inventory of unsold existing homes grew 3.5% from the prior month to 1.18 million at the end of January, or the equivalent of 3.5 months' supply at the current monthly sales pace, up slightly from January 2024's 3.0 months' supply.

"Even as inventory levels have inched upward, demand remains high in Northern Virginia, sustaining price appreciation," said Ryan McLaughlin, CEO of NVAR. "Buyers are still willing to compete for well-priced homes, reinforcing the region's reputation as a resilient real estate market. While rising interest rates and broader economic conditions continue to shape affordability, our local fundamentals — strong job growth, proximity to Washington, DC, and a diverse economy — are keeping the market strong."

Nationally, existing-home sales posted a modest 2.0% year-over-year increase, marking the fourth consecutive month of annual gains. In Northern Virginia, closed sales were up by 8% year-over-year, outperforming the national market significantly. Homes in the NVAR region remained on the market for an average of 31 days, a 6.9% increase from January 2024 but still considerably lower than the national average of 41 days.

"The Northern Virginia area is unique in its ability to sustain growth, even as we see variability in other parts of the country," said NVAR Board of Directors Member Mary Bowen, Long & Foster Real Estate. "With homes in our region staying on the market well below the national average and year-over-year closed sales growth outpacing the rest of the country — on average, Northern Virginia remains a standout in a fluctuating national landscape. This performance underscores the continued demand and investment potential in our region, which continues to outperform national trends and offer homebuyers and sellers a unique advantage."

According to NVAR's recent 2025 Housing Forecast, produced in conjunction with the George Mason University Center for Regional Analysis, the regional growth is expected to continue. The Northern Virginia housing market will keep strengthening with moderate price increases and higher levels of market activity. Northern Virginia's outlook is similar to the national 2025 housing forecast that predicts the worst of the housing inventory shortage is ending, mortgage rates are stabilizing, and job additions are continuing.

"Northern Virginia's strong market dynamics and enduring demand make it one of the nation's prime locations," added McLaughlin. "We're seeing homeowners who might have hesitated to sell due to interest rate concerns now considering their options as home values remain strong. As the market evolves, both buyers and sellers will need to stay informed and work closely with their real estate professionals to navigate the landscape."

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 January 2025 regional home sales compared to January 2024 for Northern Virginia, with data derived from Bright MLS as of February 10, 2025 (total sales and listings may not include garage/parking spaces):

• The number of closed sales in January 2025 was 833 units. This was an 8% increase compared to January 2024.
• The volume sold in January 2025 was $698,468,219. This was up 19.2% compared to January 2024.
• The average sold price was $836,329 in January 2025. This was up 10.4% compared to January 2024.
• The amount of new pending sales in January 2025 was 933 units. This was down 9.7% compared to January 2024.
• The amount of active listings January 2025 was 1,261 units. This number was up 28.5% compared to January 2024.
• The number of new listings in January 2025 was 995 units. This is below the five-year average of 1,315 new listings in January.

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

NVAR Charts, Graphs, Social Media for January 2025 NVAR Housing Stats  
January 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 Report: 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 13,000 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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SOURCE Northern Virginia Association of Realtors® (NVAR)