The Northern Virginia real estate market is seeing a noticeable shift in 2025. According to new data from Redfin, the national housing market is experiencing its largest gap between buyers and sellers since 2013 — and Northern Virginia is very much a part of this trend.

As inventory rises and buyer demand adjusts, both home buyers and sellers in Northern Virginia need to understand how these changes may impact their real estate decisions in the months ahead.

More Homes for Sale, Fewer Buyers in 2025

Nationwide, there are now 490,000 more homes on the market than there are active buyers — representing a 34% surplus of listings. This is creating a more competitive environment for sellers while giving buyers more options and leverage in negotiations.

In Northern Virginia specifically — including highly sought-after areas like Fairfax County, Arlington, Alexandria, and Loudoun County — many neighborhoods are starting to experience longer days on market and more price adjustments as inventory builds.

Home Prices May Soften Slightly

While we’re not anticipating a major drop in home values, Redfin forecasts that national home prices could decline by approximately 1% by the end of 2025. In Northern Virginia, price trends will likely vary neighborhood by neighborhood depending on supply, buyer demand, and overall market conditions.

In desirable communities where inventory remains limited, prices may stay relatively stable. In areas with more competition, sellers may need to adjust pricing or offer concessions to attract qualified buyers.

The Northern Virginia Real Estate Market Is Shifting to a Buyer’s Market

Redfin’s report notes that 31 of the top 50 U.S. metro areas have now tilted toward buyers — and Northern Virginia is seeing signs of this shift as well. This means:

• More active listings give buyers additional choices.

• Less bidding war activity compared to prior years.

• Increased negotiating power for buyers on price, contingencies, and closing costs.

For buyers who may have felt priced out or frustrated by competition in 2021 all the way through 2024, 2025 is presenting renewed opportunity to enter the market with more favorable terms.

What Northern Virginia Buyers and Sellers Should Know

For Buyers:
If you’ve been waiting for a more balanced market, now may be the right time to start your home search. With more inventory and less competition, buyers can take a more thoughtful approach while still taking advantage of today’s mortgage rates before any potential increases later in the year.

For Sellers:
While homes are still selling, pricing accurately and preparing your property for market is critical. In this environment, homes that are presented with care and thoughtfulness and are competitively priced continue to attract strong interest. Overpricing in today’s market can result in extended days on market and price reductions. My suggestion is using Compass' Private Exclusive off market strategy to start your sale process to quietly see if there are any takers for your home without hurting your home's permanent days on market and price history record online. 

For those Buying and Selling: 

While timing the market for both a buy and sell can be hard, now presents an opportunity for those upgrading as likely the more expensive home upgrade can be had at a discount compared to recent years. More inventory also means not having to rush into a home you don't love just because your home found a buyer and you have limited time to search.

The Bottom Line: Real Estate Opportunities in Northern Virginia

The 2025 Northern Virginia real estate market is no longer the fast-paced seller’s market of the past few years — but that doesn’t mean opportunity has disappeared. Instead, both buyers and sellers have options, if they’re informed and prepared with the right strategy.

If you’re thinking about buying or selling in Fairfax County, Arlington, Alexandria, Loudoun County, or anywhere in Northern Virginia, DC or Montgomery County, MD, let’s connect. As your local real estate advisor, I can help you navigate this evolving market with a clear, data-driven plan tailored to your goals.