If you’ve been keeping an eye on the real estate market in Northern Virginia, D.C., or Maryland, you may have noticed a shift happening quietly—but steadily. As a real estate professional with over two decades of experience in this region, I’ve seen the market move through many cycles. And right now, the latest data from March 2025 is showing a clear trend: inventory is on the rise.
So, what does that mean for you—whether you’re planning to buy or sell a home this year? Let’s break it down.
What the Numbers Say
According to recent data, the Washington, D.C. metro area saw a 46.8% increase in active listings compared to March 2024. Several local markets experienced even larger spikes in inventory:
- Fairfax City: +160.0%
- Falls Church City: +157.1%
- Alexandria City: +95.4%
- Arlington County: +64.3%
- Montgomery County, MD: +63.6%
- Fairfax County: +55.1%
This kind of growth doesn’t happen often, and it signals a shift toward a more balanced market.
Understanding Months of Supply
We also look at “months of supply” to gauge how fast homes are selling and how competitive the market is. In general:
- Less than 2 months of supply = Seller's market
- Around 4 to 6 months = Balanced market
- More than 6 months = Buyer’s market
While most of Northern Virginia is still technically in a seller’s market, the numbers are trending up:
- Fairfax County: 1.31 months (up 0.41 months from last year)
- Loudoun County: 1.41 months (up 0.33)
- Montgomery County, MD: 1.66 months (up 0.57)
- Washington, D.C.: 4.83 months (up 1.27)
This indicates we’re gradually moving away from the ultra-competitive conditions of the past few years.
[What This Means for Buyers]
For buyers, this increase in inventory means more choices and less pressure—especially compared to recent years when bidding wars were the norm. Still, the most desirable homes in top locations are going quickly, especially when interest rates dip and buyer activity surges.
The key takeaway for buyers is this: You now have more negotiating power and breathing room, but you still need to be ready to act quickly when the right home comes along.
[What This Means for Sellers]
For sellers, more inventory means more competition. Homes that are well-priced, properly staged, and marketed effectively are still selling quickly—and often for top dollar. But those that are overpriced or not well-prepared are sitting on the market longer.
Sellers should avoid assuming the conditions of last year still apply. A thoughtful pricing strategy, combined with professional marketing and presentation, is more important than ever.
[Why Is Inventory Rising Now?]
There are a few reasons we’re seeing this shift:
- Many homeowners who delayed selling during the pandemic are now ready to make a move.
- New construction inventory is gradually increasing across the region.
- Higher mortgage rates have reduced buyer urgency, giving listings more time on the market.
A balanced market benefits everyone. Buyers aren’t rushed, and serious sellers can still achieve excellent results if they approach the process strategically.
We’re in a unique window of opportunity in Northern Virginia and the D.C. metro area. More inventory gives buyers more options, while sellers can still take advantage of strong home values—if they adapt to today’s market conditions.
Real estate is always local. Even within the same zip code, neighborhoods can perform very differently. If you’re thinking about buying or selling this year and want a clear, honest perspective based on current trends, I’d be happy to talk and help you move forward with confidence.
Let’s connect and put together a strategy that’s right for your situation.
So, what does that mean for you—whether you’re planning to buy or sell a home this year? Let’s break it down.
What the Numbers Say
According to recent data, the Washington, D.C. metro area saw a 46.8% increase in active listings compared to March 2024. Several local markets experienced even larger spikes in inventory:
- Fairfax City: +160.0%
- Falls Church City: +157.1%
- Alexandria City: +95.4%
- Arlington County: +64.3%
- Montgomery County, MD: +63.6%
- Fairfax County: +55.1%
This kind of growth doesn’t happen often, and it signals a shift toward a more balanced market.
Understanding Months of Supply
We also look at “months of supply” to gauge how fast homes are selling and how competitive the market is. In general:
- Less than 2 months of supply = Seller's market
- Around 4 to 6 months = Balanced market
- More than 6 months = Buyer’s market
While most of Northern Virginia is still technically in a seller’s market, the numbers are trending up:
- Fairfax County: 1.31 months (up 0.41 months from last year)
- Loudoun County: 1.41 months (up 0.33)
- Montgomery County, MD: 1.66 months (up 0.57)
- Washington, D.C.: 4.83 months (up 1.27)
This indicates we’re gradually moving away from the ultra-competitive conditions of the past few years.
[What This Means for Buyers]
For buyers, this increase in inventory means more choices and less pressure—especially compared to recent years when bidding wars were the norm. Still, the most desirable homes in top locations are going quickly, especially when interest rates dip and buyer activity surges.
The key takeaway for buyers is this: You now have more negotiating power and breathing room, but you still need to be ready to act quickly when the right home comes along.
[What This Means for Sellers]
For sellers, more inventory means more competition. Homes that are well-priced, properly staged, and marketed effectively are still selling quickly—and often for top dollar. But those that are overpriced or not well-prepared are sitting on the market longer.
Sellers should avoid assuming the conditions of last year still apply. A thoughtful pricing strategy, combined with professional marketing and presentation, is more important than ever.
[Why Is Inventory Rising Now?]
There are a few reasons we’re seeing this shift:
- Many homeowners who delayed selling during the pandemic are now ready to make a move.
- New construction inventory is gradually increasing across the region.
- Higher mortgage rates have reduced buyer urgency, giving listings more time on the market.
A balanced market benefits everyone. Buyers aren’t rushed, and serious sellers can still achieve excellent results if they approach the process strategically.
We’re in a unique window of opportunity in Northern Virginia and the D.C. metro area. More inventory gives buyers more options, while sellers can still take advantage of strong home values—if they adapt to today’s market conditions.
Real estate is always local. Even within the same zip code, neighborhoods can perform very differently. If you’re thinking about buying or selling this year and want a clear, honest perspective based on current trends, I’d be happy to talk and help you move forward with confidence.
Let’s connect and put together a strategy that’s right for your situation.
"If you’ve been keeping an eye on the real estate market in Northern Virginia, D.C., or Maryland, you may have noticed ..."
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