Northern Virginia real estate leaders speak on recent inventory surge

Northern Virginia’s housing market saw a dramatic rise in available homes this fall, with active listings climbing 39.4% in October compared with the same month a year earlier, according to HousingWire Data.

The region recorded 8,194 active listings in October, up from 5,877 annually — a level of supply that hasn’t been seen in several years.

That surge far exceeded local sales growth and contributed to a noticeable cooling across a market long defined by bidding wars and chronically tight inventory.

Regardless, homes continued to sell in healthy numbers.

Northern Virginia recorded 1,228 absorbed transactions in October 2025, an 11.5% increase from the previous year, HousingWire Data shows.

The median sale price dipped 0.9% year-over-year — sliding from $1,035,782 in October 2024 to $1,026,472 this past October.

“People had a hard time and it was still so much of a seller’s market, and now, I feel like it’s getting a little bit more normal,” said Bic DeCaro, team leader at Virginia-based eXp Realty affiliate Bic DeCaro & Associates. “Sellers were a little bit shocked or surprised because the home stayed on the market longer.

“There were better opportunities for buyers than there have been in the last five years. Buyers were able to negotiate in closing costs or get some time to do inspections and contingencies.”

The increase in listings also pushed months of supply sharply higher.

Northern Virginia reached 2.04 months of supply in October, up 53.6% from 1.33 months a year earlier — the first shift away from extreme seller’s market conditions that defined the previous several years.

National inventory grew 32.1% over the same period, putting the region slightly ahead in terms of supply relief.

“The market was so under supplied last year that it had to go up to balance out a little bit,” said Donny Samson, CEO of Samson Properties and head of The Donny Samson Team in Virginia. “I think sellers are getting the picture. Last year, at this point, you could put a home up for whatever price you wanted to and it would get multiple offers. It didn’t matter the condition or the price point.

“That’s not a good market to be in. Buyers weren’t getting contingencies. They were paying over market.”

Signs point to continued cooling

As of Nov. 21, Northern Virginia carried 1,333 active listings with a median list price of $1,190,478 and 1.42 months of inventory.

Weekly absorbed sales reached 228 transactions, according to HousingWire Data.

Roughly 37.4% of active listings show price reductions — a significant indicator of sellers adjusting to shifting demand.

“I think as rates continue to ease, you’ll see more buyers in the marketplace, and more importantly, more sellers that are willing to make that trade (in rates),” Samson said. He notes that the key is for people to be willing to trade their lower rate mortgage with a higher rate one. “The closer we can get those rates to each other, the more inventory we’ll see, and we’ll continue to have a healthier market.”

DeCaro said the change in market atmosphere came as a shock to many agents earlier this year, but they’re now ready to hit the ground running in 2026.

“People just weren’t used to seeing what we’re seeing now,” she said. “We are seeing homes move, they just took a little bit longer. Nothing wrong with that. That’s normal. We just weren’t used to that in Northern Virginia. I feel like the confidence level of the agents that are in my peer group is good, and they have a lot of hope.”