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Northern Virginia Housing Market Sees Dramatic Growth in March 2025

A vibrant neighborhood in Northern Virginia reflecting the growth of the housing market in March 2025.

News Summary

In March 2025, Northern Virginia’s housing market saw a significant 25.7% increase in new listings compared to the same month last year. The total number of homes for sale reached 1,980, representing a 63.6% rise in active listings. Alongside new listings, pending sales increased by 5.5%. Despite a slight decrease in closed sales, the average time on the market was just 18 days. Noteworthy trends included a median home price increase to $755,625, contrasting with a national decline in existing home sales, highlighting Northern Virginia’s resilience in the housing market.

Northern Virginia Reports Significant Upturn in Housing Market for March 2025

Northern Virginia’s housing market experienced a remarkable 25.7% increase in new listings in March 2025 compared to the same month in the previous year. As more existing homeowners opt to sell their homes, either out of choice or necessity, a greater number of properties are now available for potential buyers.

At the end of March 2025, there were 1,980 homes for sale across the region, including houses, townhouses, and condos. This figure represents a significant 63.6% increase in active listings from the previous year. In tandem with the rise in listings, the market saw a 5.5% increase in new pending sales, indicating a heightened activity among buyers.

Closed sales in March remained relatively stable, with an increase of less than 1% compared to March 2024. Properties that went under contract during the month had an average time on the market of 18 days, marking a 12.5% increase in selling time compared to the previous year. Despite this longer duration, it is worth noting that the average of 18 days is still half of the national average of 36 days on the market.

Market Trends Reflect Local Conditions

Interestingly, Northern Virginia defied a national trend, as overall existing home sales across the U.S. saw a 2.4% decline year-over-year. The median price for homes sold in Northern Virginia during March was $755,625, which represents a 3.5% increase from the previous year. The average selling price for homes in the region has also risen to $904,843, up 8.3% from the previous March.

In Alexandria, new listings surged by 32.1% compared to March of last year. In the week ending April 27, 2025 alone, the city saw 70 new listings, a 22.8% increase from the prior week. As of now, Alexandria’s median list price stands at $767,500, an increase of 9.7% from March 2024, although it has fallen by 3.5% compared to the previous week.

Sales Volume and Price Dynamics

This past March, the overall dollar volume of home sales in Northern Virginia rose by 10.5% year-over-year, totaling $1.08 billion. The total number of homes sold also increased by 0.9%, with 1,202 properties changing hands during the month. Notably, Fairfax City reported the highest year-over-year sales increase at 47.4%, while Falls Church saw a significant drop in sales, with a 52.9% decrease compared to last year. Arlington and Alexandria also faced small declines of 2.8% and 1.2%, respectively, while Fairfax County experienced a modest growth of 2.2%.

Supply Trends Indicate Market Balance

The months of supply in Northern Virginia increased to 1.45 months, representing a 58.1% surge from the previous year. This shift reflects a more balanced market, typical of the spring season. Over the same period, the national months of supply rose to 4.0 months, up from 3.2 months a year ago. The increase in inventory and listings suggests that more homeowners are willing to enter the market, seeking opportunities during a traditionally active season.

The Northern Virginia housing market encompasses areas such as Fairfax and Arlington counties, along with the cities of Alexandria, Fairfax, Falls Church, and the towns of Vienna, Herndon, and Clifton. As the months progress, both buyers and sellers will be watching closely to see how these trends develop in the face of changing economic conditions.