Northern Virginia Market Outpaces Nation in Sales Growth and Holds Firm on Home Prices

August 2025 Housing Snapshot Shows Regional Momentum Amid Ongoing Supply Constraints

FAIRFAX, Va., Sept. 29, 2025 /PRNewswire/ -- Northern Virginia's housing market showed steady strength in August 2025, with home sales, prices, and overall dollar volume climbing year-over-year. At the same time, inventory pressures and rising days on market continued to shape buyer and seller behavior, according to the Northern Virginia Association of Realtors® (NVAR).

In August 2025, there were 1,439 closed sales, representing a 2.0% increase compared to August 2024. Nationally, existing home sales reached 4.0 million, marking a 1.8% year-over-year increase. This parallel growth highlights the resilience of both markets, with Northern Virginia slightly outpacing the national trend.

"It's encouraging to see Northern Virginia's housing market not only align with the national growth trend but edge slightly ahead of it," said NVAR CEO Ryan McLaughlin. "Closing more than 1,400 sales in August represents real momentum, especially considering the affordability challenges that remain in our region. What this tells us is that demand for homes in Northern Virginia continues to be incredibly strong, and buyers are finding ways to stay competitive in a high-priced market."

Median home prices in Northern Virginia rose to $750,201 in August 2025, up 1.7% year-over-year. The national median price stood at $422,600, a 2.0% increase. Both markets reflect steady upward price momentum, though Northern Virginia remains one of the most expensive regions in the country. "The reality is that Northern Virginia buyers are competing in a premium-priced market," said NVAR Board Member Sherry Rahnama, RE/MAX Executives. "Sellers, however, continue to benefit from steady price growth, while buyers weigh the tradeoff between higher costs and the long-term value of owning in this region."

Inventory tells a different story. Northern Virginia's active listings surged to 2,475 units in August 2025 — 36.4% higher than last year — yet months of supply was just 1.81, far below the national level of 4.6 months. National inventory reached 1.53 million units, an 11.7% increase compared to August 2024. The discrepancy highlights the intense demand pressure in Northern Virginia despite improving listing activity.

Days on market further illustrates the gap. Locally, homes averaged 26 days on the market in August 2025, up 44.4% compared to last year. Nationally, the average was slightly higher at 31 days but reflected a more moderate 19.2% increase. "This dynamic tells us that while buyers have a bit more breathing room compared to last year, Northern Virginia still operates at a much faster pace than the national market," said McLaughlin. "For both buyers and sellers, understanding these nuances is critical for making smart real estate decisions."

As the market heads into the fall, Northern Virginia is likely to see continued demand tempered by affordability considerations and longer market times. Rising inventory may provide some relief for buyers, but supply levels remain well below the national average. These dynamics suggest that while the region is stable, both buyers and sellers will need to navigate the market carefully in the months ahead.

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

• The number of closed sales in August 2025 was 1,439 units. This was up 2.0% compared to August 2024.
• The volume sold in August 2025 was $1,276,766,754. This was a 5.9% increase compared to August 2024.
• The average sold price was $879,942 in August 2025. This was up 2.5% compared to August 2024.
• The number of new pending sales in August 2025 increased to 1,403 units — a 9.6% increase compared to August 2024.
• The number of active listings in August 2025 was 2,475 units. This number was up 36.4% compared to August 2024.
• Average days on market was 26 days in August 2025. This was up 44.4% compared to August 2024.
• Months of supply of inventory in August 2025 was 1.81. This was up 31.2% compared to August 2024.

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

NVAR Charts, Graphs, Social Media for August 2025 NVAR Housing Stats  
August Housing Data: Click here.
Regional Jurisdiction Infographic: Click here.
NVAR Region Infographic: 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. nvar.com. 

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SOURCE Northern Virginia Association of Realtors® (NVAR)