Inventory Increases While Closed Sales and Dollar Volume Decline
The Northern Virginia housing market in February 2025 showed a combination of growing inventory and slowing sales activity, reports the Northern Virginia Association of Realtors® (NVAR). While total closed sales and dollar volume declined compared to last year, the median home price increased, and active listings rose significantly, indicating a shift toward a more balanced market.
In February 2025, 937 homes were sold, representing an 8.1% decrease compared to February 2024. The total dollar volume of homes sold fell by 9.5% to $761.4 million, reflecting a pullback in overall market activity. However, the median sold price rose 6.6% to $732,750, showing continued strength in home values despite fewer transactions.
“The Northern Virginia market is adjusting to changing economic conditions, with buyers and sellers navigating shifts in affordability and inventory,” said Ryan McLaughlin, CEO of NVAR. “While closed sales have slowed, the steady median home price suggests ongoing demand for well-priced properties.”
One of the most notable trends in February was the sharp increase in available homes. Active listings rose 31.8% year-over-year to 1,520 units, and the months of supply grew by 29% to 1.12 months, indicating a rise in housing options for buyers.
“The increase in active listings is an encouraging development for prospective homebuyers who have been faced with limited options in recent years,” said NVAR President Casey Menish, Pearson Smith Realty. “A boost in inventory not only helps create a more balanced market but also opens doors for buyers who may have been sidelined by fierce competition or rising prices. This shift could provide much-needed opportunities for those eager to make their move.”
However, new listings decreased by 3.8% and new pending sales dropped by 6.7%, suggesting some hesitation from sellers and buyers alike. Meanwhile, the average days on market remained steady at 22 days, indicating that well-positioned homes continue to sell at a stable pace.
“While the market is seeing shifts, homes that are competitively priced are still moving quickly,” added McLaughlin. “As inventory continues to grow, buyers will likely have more negotiating power in the coming months.”
As Northern Virginia’s housing market navigates fluctuations in inventory and home prices, experts continue to assess the underlying factors driving these changes. One area of ongoing discussion is the shifting dynamics of the federal workforce, a key component of the region’s economy. Although these changes may play a role, their full impact on the housing market remains uncertain.
“While speculation continues about the impact of changes in the federal workforce on the local housing market, it remains to be seen how these shifts will fully influence demand and market trends. As we continue to monitor the situation, we remain focused on broader economic factors shaping the market,” McLaughlin said.
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.
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 February 2025 regional home sales compared to February 2024 for Northern Virginia, with data derived from Bright MLS as of March10, 2025 (total sales and listings may not include garage/parking spaces):
- The number of closed sales in February 2025 was 937 units. This was an 8.1% decrease compared to February 2024.
- The volume sold in February 2025 was $761,363,278. This was a 9.5% decrease compared to February 2024.
- The average sold price was $822,461 in February 2025. This was a tick down, 1%, compared to February 2024.
- The number of new pending sales in February 2025 was 1,098 units. This was down 6.7% compared to February 2024.
- The number of active listings February 2025 was 1,520 units. This number was up 31.8% compared to February 2024.
- The number of new listings in February 2025 was 1,207 units. This number was down 3.83% compared to February 2024.
Read more about the NVAR regional housing market at nvar.com/Marketstats.
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