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

The July 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 July 2025, states as follows:

"There has been uncertainty in the Washington D.C. area housing market as a result of federal government layoffs and budget cuts. As inventory rises, expect home price growth to soften as we head into fall. In some local markets, particularly in the further out jurisdictions, home prices could fall year-over-year. Buyers who remain in the market will have more leverage, though economic uncertainty will continue to keep some would-be buyers on the sidelines."

(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 (down only 1.2%, with only 27 fewer Contracts in May-July than in 2024).

➡️ New Listings in Fairfax County are up only slightly in 2025 through July (+2.9% vs 2024), with New Listings in May, June, & July slightly trailing 2024.  

➡️ The Northern Virginia market segment as a whole also has a similar small deviation with 2024, with 4.3% more New Listings through July. Total Sales in the NoVA market segment are up less than 1% in 2025 through July versus 2024.

➡️ However, Buyers are taking far longer to decide on a new home.  On August 20th, The Active for Sale Houses on August 20 in Fairfax County have an Average & Median DoM of 50 & 36 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 July were up 40% versus 2024, following, following large % increases in March, April, May. & June (up 55%, 62%, 46%m & 50%, respectively).

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.

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 NoVA Market Update (link to Update post).

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

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