Northern Virginia Defies National Slowdown: Market Sees Strong Price Growth and Inventory Increase in March

FAIRFAX, Va., April 25, 2025 /PRNewswire/ -- While the national housing market continued to show signs of a cooldown in March, Northern Virginia stood apart with resilient pricing, a rise in inventory, and buyer interest that remained steady despite houses staying on the market longer, reports the Northern Virginia Association of Realtors® (NVAR).

In March 2025, the Northern Virginia housing market recorded 1,202 closed sales, reflecting a modest but stable 0.9% year-over-year increase. In contrast, national sales decreased 2.4% from March 2024, showing the strain of tight affordability and elevated interest rates. In Northern Virginia, steady demand and local market strength helped keep transactions on pace.

"The Northern Virginia housing market is showing a level of resilience that sets it apart from national trends," said NVAR CEO Ryan McLaughlin. "While much of the country is experiencing a slowdown, our region continues to benefit from strong economic fundamentals — such as high household incomes, steady population growth, and a solid employment base in tech and professional services — alongside steady buyer demand, as housing supply continues to show signs of improvement."

Home prices in Northern Virginia also outpaced the national rate of appreciation. The median sold price in the region reached $755,625, rising 3.5% from a year ago, outshining the 2.7% national price increase, which pushed the U.S. median to $403,700 — an all-time high for the month of March.

"Buyers are still willing to pay a premium for homes in our area," said NVAR Board Member Sherry Rahnama, RE/MAX Executives. "We're seeing that even in a higher interest rate environment, homes that are priced competitively and show well continue to attract multiple offers."

Despite the upward price trajectory, homes in Northern Virginia are taking slightly longer to sell. The average days on market rose to 18 days, up 12.5% compared to March 2024. Nationally, homes are sitting even longer, with an average of 36 days on market — double the time it takes in Northern Virginia.

The most striking divergence from national patterns lies in inventory growth. Northern Virginia saw a 63.6% increase in active listings year-over-year, with 1,980 homes on the market in March. The months of supply also increased to 1.45 months, a 58.1% jump. Meanwhile, nationally, inventory rose 19.8%, and months of supply grew to 4.0 months, up from 3.2 a year earlier.

"We're finally getting some breathing room in our local market," McLaughlin added. "Rising inventory means buyers have more options, and sellers can expect more informed, competitive offers. This shift represents a healthier, more sustainable market for the long term."

While national trends reflect a challenging environment for many markets, Northern Virginia's housing landscape remains active, competitive, and increasingly balanced. As the region continues to evolve, the spring market is expected to offer more opportunities for buyers and sellers alike.

NVAR's 2025 Housing Forecast, produced in conjunction with the George Mason University Center for Regional Analysis, indicates that 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 March 2025 regional home sales compared to March 2024 for Northern Virginia, with data derived from Bright MLS as of April 9, 2025 (total sales and listings may not include garage/parking spaces):

• The number of closed sales in March 2025 was 1,202 units. This was just a 0.9% increase compared to March 2024.
• The volume sold in March 2025 was $1,075,963,284. This was a 10.5% increase compared to March 2024.
• The average sold price was $904,843 in March 2025. This was up 8.3% compared to March 2024.
• The number of new pending sales in March 2025 was 1,695 units. This was up 5.5% compared to March 2024.
• The number of active listings in March 2025 was 1,980 units. This number was up 63.6% compared to March 2024.
• The number of new listings in March 2025 was 1,890 units. This number was up 25.67% compared to March 2024.

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

NVAR Charts, Graphs, Social Media for March 2025 NVAR Housing Stats

March 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 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)