This week brought a wave of important updates that affect both homebuyers and sellers in Northern Virginia. From fresh housing data to the Federal Reserve’s announcement and the latest inflation numbers. All these factors play a role in shaping today’s real estate climate.
Housing Data – end of August 2025
- Median Sold Price: $705,000 (down 0.4% from July, up 2.7% year-over-year).
- Homes Sold: 2,568 (down 6.8% from July, up 1.8% year-over-year).
- Days on Market: 25 (up five days from July, up eight from August 2024).
- Active Listings: 4,037 (down 3% from July, but up 39% compared to last year’s record lows).
- List-to-Sale Price Ratio: 98.5% (slightly lower than last month and last year, reflecting gradual price adjustments).
The data shows a balanced mix: more inventory than last year, slightly longer selling times, and a modest dip in pricing power. Correct pricing remains critical to getting under contract quickly.
Federal Reserve and Inflation
The Federal Reserve announced a 0.25% cut to the federal funds rate, signaling caution about economic growth despite inflationary pressures.
- CPI (Consumer Price Index): 2.9%, with predictions it may edge above 3% by year-end.
- Unemployment: Currently 4.3%, with forecasts of a slight rise to 4.5%.
- Fed Outlook: Two additional rate cuts are expected in upcoming reports. Fingers crossed
The move highlights the Federal Reserve’s balancing act—supporting economic stability while monitoring inflation and employment. Most experts predict rates will continue on a slow and steady downward trend.
Mortgage Rates: Daily Adventure
Mortgage interest rates remain somewhat volatile – all in the 6% range. They shift daily. As of today, the average 30-year fixed mortgage rate stands at 6.1%, the lowest since October 2024. Recent fluctuations have ranged from 6.1% to nearly 7%, making timing crucial for buyers.
Working closely with knowledgeable loan officers is key to navigating these daily shifts and finding opportunities to lock in favorable rates.
Outlook for 2025 and Beyond
Despite concerns about broader economic slowing, the local housing market shows resilience:
- Inventory has improved, offering buyers more choice.
- Multiple-offer situations are still occurring, even at current interest rate levels.
- Buyer confidence is strengthening as households adapt to rates in the 6% range.
Forecasts suggest a strong finish to 2025, with momentum potentially carrying into 2026 if rates continue to ease and buyer optimism holds steady.
✅ Bottom Line: Northern Virginia’s market remains active and competitive, with conditions evolving week by week. Buyers and sellers who stay informed on rates, pricing, and economic signals will be best positioned to make smart moves.
Questions? Please contact us.
