FAIRFAX, Va., March 24, 2025 /PRNewswire/ -- The Northern Virginia housing market in February 2025 demonstrated a blend of growth and challenges, continuing to evolve amid a backdrop of national trends that saw a slight uptick in sales but persistent inventory constraints, according to the Northern Virginia Association of Realtors^® (NVAR). The regional market's performance in February tells a more dynamic story compared to national figures, with a notable rise in home prices and a significant increase in available inventory, contrasting with national market statistics that show only modest improvements in both areas.

Locally, the Northern Virginia market experienced a decrease in the number of closed sales, with 937 units sold in February 2025, reflecting an 8.1% drop compared to the same month last year. This decrease in sales is not unique to the region, as the national housing market also saw a slight decline in year-over-year sales. Nationally, existing-home sales were down by 1.2% compared to February 2024, despite a 4.2% increase from January 2025. The decline in both markets suggests that the higher interest rates and economic uncertainty may still be influencing buyer behavior, leading to fewer transactions across the board.

"While we're seeing fewer sales overall, there is still strong demand in the region," said NVAR CEO Ryan McLaughlin. "Buyers are motivated, even in the face of relatively low inventory, and they're continuing to compete for available homes. However, the higher interest rates and economic uncertainty still seem to be impacting the number of closed transactions."

Despite the decline in sales, the Northern Virginia market saw a significant increase in home prices. The median sold price in the region rose 6.6% year-over-year to $732,750 in February 2025, outpacing the national median price, which grew by 3.8% to $398,400.This difference underscores Northern Virginia's continued appeal as a desirable place to live, driven by its proximity to Washington, DC, and its vibrant local economy. "Even in the face of decreased sales, the market in Northern Virginia remains competitive, with prices continuing to rise," McLaughlin added. "It's a testament to the strong demand in our area, where even limited supply can lead to higher prices as buyers search for the right home."

The inventory picture in Northern Virginia also stands out in comparison to national figures. The region saw a 31.8% increase in active listings in February 2025, reaching 1,520 homes available for sale. This rise in supply is a notable contrast to the national inventory growth of just 5.1%, reflecting a more substantial shift in available supply in Northern Virginia. As a result, the months of supply in Northern Virginia rose by 29.0% year-over-year, reaching 1.12 months in February 2025. Nationally, the inventory of unsold homes was equivalent to 3.5 months' supply. McLaughlin noted, "The significant increase in inventory in Northern Virginia is a welcome sign for buyers who have long been frustrated by limited options. While we're still in a seller's market, more inventory means more opportunities for buyers, which is critical as we move into the spring market."

Homes in Northern Virginia continue to sell at a brisk pace compared to the national average, highlighting the region's strong demand and competitive market conditions. Nationally, homes were on the market for an average of 42 days in February 2025, slightly longer than the 38 days from the same month last year. Meanwhile, in Northern Virginia, homes spent an average of 22 days on the market, unchanged from the previous year, suggesting a faster-moving market despite fewer transactions. "The faster pace of sales in Northern Virginia indicates a more competitive environment, where homes are selling quickly even with a slight decrease in overall sales," said NVAR Board of Directors Member Veronica Seva-Gonzalez, Compass. It's still a market where buyers need to act swiftly when they find the right property, in the majority of cases.

The contrast between the Northern Virginia market and national figures reflects a unique set of dynamics playing out locally. While the national housing market has seen modest improvements in both sales and inventory, the Northern Virginia market stands out for its higher price growth, more substantial increase in available inventory, and quicker pace of sales. The region's appeal remains strong, with rising prices signaling continued demand, and more inventory suggesting that buyers may have more options in the near future.

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.

NVAR Charts, Graphs, Social Media for February 2025 NVAR Housing Stats  
February 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)