This last week, we received a flood of feedback and questions—thank you! One question stood out more than any other:
“Are we in a buyer’s market?”
That simple question can spark quite the debate but the bottom line is: The market is shifting. Here’s why:
A Look at the Numbers
According to the data, we’re not in a buyer’s market just yet. One of the indicators we often rely on is the average sale price to list price ratio—a quick way to see if homes are selling at, above, or below asking price. In both April and May 2025, that ratio held steady at or just above 100%. That means, on average, homes are still selling at their list price or even a little more.
That’s not the kind of trend we’d expect to see if the market had fully transitioned to a buyer’s market.
But Here’s the Sentiment on the Ground
The numbers only tell part of the story. Sentiment matters—and what we’re hearing from other agents and seeing in our day-to-day work is a bit different. Homes are sitting on the market longer, buyers are more cautious, and in some areas, we’re seeing notable price reductions.
Looking at the localized data through the end of May:
Northern Virginia saw a nearly 2% increase in average sale price month-over-month and 4% year-over-year.
Loudoun County prices fell by 3%.
Fauquier and Prince William Counties both saw prices rise.
Even Clarke County saw an 11% increase from the previous month!
There’s strong activity moving west, and the market is highly neighborhood-specific. Real estate has always been local—but right now, it’s hyper-local.
Here’s what we’re observing:
Many listings aren’t moving as quickly, especially those that are priced too optimistically.
Price reductions are happening more often—but often as course corrections for initial overpricing.
When sellers do price in line with the market (or just under), many homes still attract competitive offers.
And importantly: Median home prices are still rising, up 4.6% compared to this time last year and 1.9% from April to May.
So yes, we’re in a shifting market—but it’s not a buyer’s market just yet.
The Takeaway
We believe the market is normalizing. We’re seeing more balance between buyers and sellers. That means pricing right matters more than ever. For sellers, this is not the time to chase the highs of 2021–2022. For buyers, patience and strategy will pay off—but don’t wait around expecting a crash that isn’t happening.
If you’re unsure what this all means for your personal real estate goals, let’s talk. We’re watching the market closely and are here to guide you with up-to-date, neighborhood-specific insights.
GIVE US A CALL: 703-470-0680 OR 703-881-6947
