There is a lot of excitement in the air this Spring. More homes are on sale and more buyers are shopping for them. Here’s the latest Northern Virginia Market Update for May 2025.
Mortgage Interest Rates
“Stubbornly stable” is the best term to describe recent mortgage interest rate trends. They remain a key factor for buyers and sellers. Still, it seems that though rates are fluctuating between 6.5% to 7%, home shoppers and owners are still jumping head first into this real estate market. It may be they are tired of putting off their plans for the future and are ready to move on. It may also be that recent trends of workers returning to the workplace are forcing another move back near major metropolitan areas like DC, Arlington, and Reston. According to this Forbes article, rates aren’t expected to go down anytime soon.
Statistics and What it Means
Using statistics from MarketStats by ShowingTime, we looked at 10 counties in Northern Virginia – Alexandria, Arlington, Fairfax, Falls Church, Fauquier, Loudoun, Manassas City, Manassas Park City, and Prince William. Here are the highlights for Northern Virginia.
The median sale price for a home in Northern Virginia at the end of April 2025 was $718,500, which is down 0.4% from the previous month and up 2.6% from the same time last year.
By the end of April, 2,713 homes in Northern Virginia were sold. This is up 35% from the previous month and up 1.4% from last year.
The number of Days on Market for Northern Virginia is now 14 days, this is 5 days less than last month and the same compared to last year. Homes seem to be flying off the shelves.
This month, there are 4,144 homes for sale, which is a 28% increase from last month and a whopping 65% increase from last year.
Bright MLS Buyer Demand Index
According to Bright MLS Home Demand Index, buyer demand in the Washington Metro Area (which includes Northern Virginia) remains “Limited”. The Bright MLS | T3 Home Demand Index measures and tracks consumer and real estate professional behavior related to shopping for real estate. They look at metrics such as the number of views of homes online and in-person showings. Ratings are categorized into 5 score points: Limited (under 70 points), Slow (70-89), Steady (90-109), Moderate (110-129), and High demand (over 130).
In the month of May, buyer demand is now predominantly STEADY. Here are the top 5 in Northern Virginia: HIGH in Arlington (176), Alexandria (158); MODERATE in Prince William (125), Stafford (116), and Fairfax (111). Loudoun County’s buyer demand is STEADY (103).
What Does This All Mean
The real estate market in Northern Virginia this Spring is on fire, especially compared to this time last year. During that time, home owners were reluctant to give up their low 3% mortgage interest rates and inventory was at historic lows. This year, it appears buyers and sellers are accustomed to the new mortgage interest rates and are out in full force.
Bottom Line
The market update in May 2025 shows a more balanced real estate market where home shoppers and home buyers can come to mutually beneficial agreements. We look forward to keeping you informed every step of the way.
Questions/Concerns? Please contact us.
