Executive Summary
- Sales Growth: Closed home sales in Northern Virginia increased by 7.5% in October 2025 compared to the previous year, reaching 1,427 units.
- Price Appreciation: The median sold price rose by 4.9% year-over-year to $750,000, reflecting continued buyer demand.
- Inventory Surge: Active listings jumped 42.2% from October 2024, signaling a significant increase in housing supply and a move toward a more balanced market.
The Northern Virginia housing market demonstrated continued strength in October 2025, with a significant increase in both closed sales and available inventory, suggesting a shift towards a more balanced environment for buyers and sellers. According to data released by the Northern Virginia Association of Realtors® (NVAR), the region saw year-over-year growth in sales volume and prices, alongside a substantial expansion of housing supply.
In October, closed sales reached 1,427, a 7.5% increase compared to the same month in 2024. This activity contributed to a total sold dollar volume of over $1.3 billion, marking a 16.5% rise from the previous year. The median sold price for a home in the region also climbed, increasing by 4.9% to $750,000, which NVAR attributes to persistent buyer demand for well-maintained properties.
“The growth we’re seeing in both sales and dollar volume is a sign of steady confidence in Northern Virginia real estate,” said NVAR CEO Ryan McLaughlin. He noted that the market’s fundamentals, including strong employment and desirable communities, remain solid despite mortgage rates hovering around six percent.
A key indicator of market rebalancing was the significant growth in housing supply. Active listings rose to 2,562 in October, a 42.2% increase from the prior year. This jump in inventory pushed the months of supply up by 36.8% to 1.85 months. Consequently, homes are remaining on the market longer, with the average days on market increasing by 42.1% to 27 days.
“An increase in inventory gives both buyers and sellers a sense of breathing room,” commented NVAR Board Member Christina Rice of Pearson Smith Realty. “While prices remain high, we’re seeing more flexibility and healthier negotiations, which ultimately create a more sustainable housing environment.”
The report also addressed the potential impact of the federal government shutdown that began on October 2, noting that its immediate effects on the housing market have been limited. “While we’re monitoring how the shutdown may affect buyer confidence and transaction timelines, Northern Virginia’s housing market remains steady,” McLaughlin stated, crediting the region’s diverse employment base for mitigating short-term economic disruptions.
As 2025 draws to a close, the data points to a market that is adapting to new economic conditions. The concurrent rise in sales and inventory suggests a healthier, more predictable environment is emerging in the Northern Virginia real estate landscape.
