Northern Virginia Housing Market Outpaces National Trends to Close Out 2025

December data highlights stronger price growth and tighter supply locally, maintaining a more competitive market than the nation as a whole

FAIRFAX, Va., Jan. 22, 2026 /PRNewswire/ -- As the national housing market ended 2025 with modest gains and gradually improving inventory, Northern Virginia continued to distinguish itself in December with stronger price growth, persistent supply constraints, and a more deliberate pace of sales, according to the Northern Virginia Association of Realtors® (NVAR).

Home prices in Northern Virginia remained a defining point of contrast with the national market. The median sold price in the region reached $715,000 in December 2025, reflecting a 2.1% increase from December 2024. Nationally, the median existing-home sales price rose just 0.4% year over year to $405,400, underscoring the premium buyers continue to place on Northern Virginia's housing market.

"Northern Virginia's price growth continues to outpace the national market because demand here remains fundamentally strong," said NVAR CEO Ryan McLaughlin. "Even in a higher-rate environment, buyers are competing for limited inventory in one of the most economically resilient regions in the country, which continues to support home values."

Inventory trends further highlight the difference between local and national conditions. While Northern Virginia saw a slight improvement in supply, the market remained exceptionally tight, with 1.04 months of supply in December, up from 0.8 months one year earlier. By comparison, national housing inventory stood at 1.18 million units, representing 3.3 months of supply, up from 3.2 months in December 2024. The disparity reflects a local market that, despite comparatively lower inventory, is making measured progress toward balance.

"While inventory remains comparatively constrained, we're seeing steady, incremental progress toward a more balanced market in Northern Virginia," McLaughlin said. "Those underlying supply-and-demand dynamics continue to shape local conditions in ways that differ from national averages."

Despite inventory constraints, sales activity in Northern Virginia showed notable momentum. The region recorded 1,197 closed sales in December, a 5.2% increase year over year, more than triple the national growth rate. Across the US, total existing-home sales rose 1.4% from one year earlier to 4.35 million, signaling stabilization rather than acceleration.

"The increase in closed sales locally tells us that buyers and sellers are finding ways to move forward," McLaughlin said. "This isn't a market lacking interest — it's a market where participants are navigating affordability, interest rates, and limited choices with greater intention."

That shift toward a more measured approach is also evident in how long homes are taking to sell. In December, the average days on market in Northern Virginia rose to 35 days, a 29.6% increase from 27 days in December 2024. Nationally, the median days on market increased to 39 days, up from 35 days one year earlier, signaling a broader move toward a slower, more deliberate sales pace. While buyers are taking more time to make decisions, both locally and nationally, the trend reflects a market that is adjusting rather than weakening, aligning more closely with long-term norms.

"Longer days on market signal normalization," McLaughlin added. "Buyers are being more selective, and sellers are recalibrating expectations. That balance ultimately contributes to a healthier and more sustainable housing market."

As 2026 begins, Northern Virginia enters the year from a position of strength. Median home prices and closed sales continue to outperform national averages, reflecting strong buyer demand and a market that is adjusting rather than slowing. With limited inventory and ongoing price resilience, the region is well-positioned for a stable, competitive year ahead.

"Compared to the national picture, Northern Virginia is still operating under a different set of dynamics," McLaughlin said. "The market is adjusting, but it's doing so with fundamentals that remain solid and competitive."

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 December 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 average days on market was 35 days in December 2025. This was up 29.6% 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 months of supply of inventory in December 2025 was 1.04. This was up 29.7% compared to December 2024.

NVAR Charts, Graphs, Social Media for December 2025 NVAR Housing Stats
December National Comparison: Click here.
December Housing Data: Click here.
Regional Jurisdiction Infographic: Click here.
NVAR Region Infographic: Click here.
2026 Regional Housing Market Forecast: 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, with a new Member Experience Center located in Loudoun County, 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)