Buyer Leverage Continues as Active Listings Remain Significantly Higher than 2024 | Northern Virginia Real Estate Market | Monthly Market Stats for August 2025

The August 2025 Bright MLS monthly data for the Washington Metro real estate market is provided below for the following areas:

• Alexandria City.

• Arlington County.

• Fairfax County.

• Loudoun County.

• Montgomery County.

• Prince Georges County.

• Washington, DC.

  
  

➡️The "Market Outlook" in the Bright MLS Washington Metro area Monthly Market Report for August 2025, states as follows:

"The Washington, D.C. area housing market has slowed but it has not stalled out. Uncertainty surrounding federal government layoffs and budget cuts have made prospective buyers and sellers more cautious. Slightly lower rates and slower home price appreciation, or even year-over-year declines, should bring more buyers out this fall though sales activity is likely to remain relatively subdued."

(Emphasis added.)

➡️ 2025 Buying activity through measured by New Contracts is essentially the same as 2024, when looking at Fairfax County as a barometer of the Overall Northern Virginia real estate market (only 32 fewer Contracts through August than in 2024, with no material difference during Spring or Summer months).

➡️ New Listings in Fairfax County are up only slightly in 2025 through August (+2.5% vs 2024), with New Listings in the May-August period slightly trailing 2024.  

➡️ The Northern Virginia market segment as a whole also has a similar small deviation with 2024, with only 3.8% more New Listings through August. Total Sales in the NoVA market segment are up less than 1% in 2025 through August versus 2024 (measured by New Contracts & Closed Sales).

➡️ However, Buyers are taking far longer to decide on a new home.  On September 11th, the Active for Sale Houses in Fairfax County have an Average & Median DoM of 49 & 34 days. The 50% of Houses for Sale above the Median DoM have an average 84 days on market.

➡️ As a result of a longer decision process by Buyers, Active Listings are up significantly across all Localities. For Fairfax County, Active Listings in August were up 30% versus 2024, following, following large % increases in March, April, May. & June (up 55%, 62%, 46%, 50%, & 40%, respectively).

Market Summary: Buyers have more houses to choose from.  More choices means a market environment where Buyers have more leverage than we have seen during the past two years.  A “Balanced” market is defined as 3 months of house inventory.  At present, we are at just under 2 months of inventory in the NoVA market, which is double the level seen in the last 5 years.  Our market has been locked in a 1 month or less inventory range for so long that a 2 month supply of Inventory “feels” & “acts” like a Balanced Market. Further, Months of Supply for May, June, & July in Fairfax County was 2x the 2024 level. August Months of Supply was the same as the May-July period (1.8 months), so we have maintained this higher plateau through the Summer. Months of Supply typically peaks in September into October, so the question for this Fall is whether we maintain the current plateau or increase as we get an uptick in New Listings in September.

For my most recent Deep Dive into Buyer activity and the increasing Days on Market in the Northern Virginia market, check out my mid-August & end August NoVA Market Updates (links to the Market Update posts).

See more market news, insight, & analysis on my "How's the Market?" Blog at bellacasapartners.com/marketnews.

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