Northern Virginia’s real estate market continued to see elevating inventory in June, the Northern Virginia Association of Realtors reported. And this month, home prices are now trending downwards.
NVAR’s June report showed that NoVA’s housing inventory was at 2,512, up 52.7 percent year over year from June 2024. This continues a trend in the NoVA market for several months.
But June’s report now also shows that home prices are beginning to lower. In June 2025, the median home price was $770,000, down 1.3 percent from last year. This is the first month in 2025 that prices have gone down year over year, disrupting an ongoing trend of escalating home prices in the area.
Homes are also spending more time on the market, with an average of 20 days. That’s a 42.9 percent increase year over year.
NVAR says that this is a sign the market is “normalizing” and shifting to be in buyers’ favor.
“We view this as a healthy recalibration,” said NVAR CEO Ryan McLaughlin in a news release. “Buyers have more time to make informed decisions. Pricing is stabilizing after years of intense upward pressure. These are all indicators of a maturing, resilient market that is adjusting to new conditions without losing momentum.”
But another recent study indicated that agents in the area believed that federal layoffs have begun to impact the DC area housing market. Bright MLS found in June that more than a third of DC-area agents or brokers reported that federal workforce layoffs were causing home prices to fall in their markets.
A Buyer’s Market
Redfin is also reporting that one in seven pending home sales fell through in June, the highest June level on record. Nationwide, 14.9 percent of homes that went under contract had home-sale agreements cancelled. In the Washington, DC, market, 12 percent of contracts fell through, up from 9.9 percent last year.
Redfin suggests that this is “largely because this is a buyer’s market.” Its report says that there are hundreds of thousands more sellers than buyers in the U.S., giving buyers more options and more negotiating power, allowing them to back out of contracts if a better house comes along.
“Sellers are willing to make deals because in today’s buyer’s market, they don’t want to lose out on a sale once they have a buyer under contract,” said Van Welborn, a Redfin Premier agent in Phoenix, Arizona. “A few years ago, when the market was more competitive, sellers were able to tell buyers to move on rather than pay for repairs found during the inspection period. Now, sellers are doing whatever they can to close the deal.”
The Redfin report also suggests that some back-outs are because of high home costs and monthly mortgage payments. It says that some buyers back out “when the reality of their monthly payment sets in.” And some may cancel if they are anxious about the possibility of a recession, tariffs, or inflation.
Feature image, stock.adobe.com
