If you’ve been watching the real estate headlines and wondering whether we’re heading into another wave of foreclosures—especially here in Northern Virginia—you’re not alone. With so much uncertainty around interest rates, the economy, and affordability, I’ve had quite a few clients ask me: “Are foreclosures going up in our area?”
The short answer? No, they’re not. In fact, Northern Virginia remains one of the most stable housing markets in the country right now. Let’s break it down together in a way that’s easy to understand—whether you’re a buyer, seller, investor, or just keeping an eye on the market.
[Foreclosure Rate: Still Low and Steady]
As of January 2025, Virginia ranked 36th in the nation for foreclosure activity. That’s one foreclosure for every 8,579 homes—a pretty low number by national standards. Statewide, there were only 426 foreclosure filings reported that month.
Even better news? Fairfax, Loudoun, and Arlington Counties—some of the key areas in Northern Virginia—are consistently ranked among the least vulnerable to foreclosure in the state.
In other words: The sky is not falling. Not even close.
[Strong Market Fundamentals Are Holding Us Steady]
Let’s take a look at what’s really driving this resilience:
Home Prices Are Still Climbing;
In March 2025, the average sold price in Northern Virginia hit $904,843, up 8.3% from last year. Even the median price rose year-over-year, which tells us demand is still healthy.
More Homes Are Hitting the Market;
Inventory is up 63.6% year-over-year, and months of supply reached 1.45 in March. That’s a sign we’re moving toward a more balanced market—not a distressed one.
Sales Volume Is Growing;
The total sold dollar volume in March increased 10.5% from last year. Even though some months showed a slight dip in closed sales, buyer interest hasn’t gone anywhere.
[Why Northern Virginia Is Less Prone to Foreclosure]
Here’s what makes our area different:
High Home Equity: Most homeowners in NoVA have seen strong equity growth over the past few years, giving them a buffer if financial challenges arise.
Strong Job Market: Our region benefits from a diverse economy—tech, government, defense, healthcare—which supports income stability.
Desirable Location: Let’s be honest, people want to live here. Good schools, transit access, and job opportunities keep demand high.
[So, What Does This Mean for You?]
If You’re a Buyer: Don’t wait around hoping for a flood of foreclosures. There’s no sign of that happening anytime soon. However, with inventory improving, this may be your window to buy with a bit more breathing room.
If You’re a Seller: The market is still in your favor—especially if your home is priced right and move-in ready. Rising inventory means a little more competition, but strong pricing trends are still working for you.
If You’re an Investor: This isn’t a distressed market, but it is a stable one. That makes Northern Virginia a smart play for long-term value.
The data from early 2025 makes one thing clear: There is no foreclosure crisis in Northern Virginia. Our local market is holding strong, and while things are shifting toward balance, there’s no major risk of distressed sales flooding the market.
If you have questions about buying, selling, or investing in today’s market, I’d love to talk. As someone who’s lived and worked in Northern Virginia for over two decades, I’m here to help you make sense of the data—and make the best move for your future.
<<Sources>>
ATTOM Data – Foreclosure Rate by State (January 2025):
https://www.attomdata.com/news/most-recent/foreclosure-rate-by-state-january-2025/
NVAR – March 2025 Market Stats Press Release:
https://www.nvar.com/docs/default-source/pdfs/market-stats/march-2025-market-stats-press-release---final.pdf
Virginia Realtors – February 2025 Virginia Home Sales Report:
https://virginiarealtors.org/2025/03/25/key-takeaways-february-2025-virginia-home-sales-report/
CAVA Buys – Virginia Foreclosure Statistics:
https://cavabuys.com/virginia-foreclosure-statistics/
Northern Virginia Magazine – Housing Market Update (April 2025):
https://northernvirginiamag.com/home/real-estate/2025/04/10/novas-housing-market-saw-increases-in-home-prices-and-inventory-in-march/
Rocket Homes – Fairfax County Market Report:
https://rocket.com/homes/market-reports/va/fairfax-county
PR Newswire – Northern Virginia Market Growth (March 2025):
https://www.prnewswire.com/news-releases/northern-virginia-housing-market-shows-steady-growth-in-march-2025-302425827.html
The short answer? No, they’re not. In fact, Northern Virginia remains one of the most stable housing markets in the country right now. Let’s break it down together in a way that’s easy to understand—whether you’re a buyer, seller, investor, or just keeping an eye on the market.
[Foreclosure Rate: Still Low and Steady]
As of January 2025, Virginia ranked 36th in the nation for foreclosure activity. That’s one foreclosure for every 8,579 homes—a pretty low number by national standards. Statewide, there were only 426 foreclosure filings reported that month.
Even better news? Fairfax, Loudoun, and Arlington Counties—some of the key areas in Northern Virginia—are consistently ranked among the least vulnerable to foreclosure in the state.
In other words: The sky is not falling. Not even close.
[Strong Market Fundamentals Are Holding Us Steady]
Let’s take a look at what’s really driving this resilience:
Home Prices Are Still Climbing;
In March 2025, the average sold price in Northern Virginia hit $904,843, up 8.3% from last year. Even the median price rose year-over-year, which tells us demand is still healthy.
More Homes Are Hitting the Market;
Inventory is up 63.6% year-over-year, and months of supply reached 1.45 in March. That’s a sign we’re moving toward a more balanced market—not a distressed one.
Sales Volume Is Growing;
The total sold dollar volume in March increased 10.5% from last year. Even though some months showed a slight dip in closed sales, buyer interest hasn’t gone anywhere.
[Why Northern Virginia Is Less Prone to Foreclosure]
Here’s what makes our area different:
High Home Equity: Most homeowners in NoVA have seen strong equity growth over the past few years, giving them a buffer if financial challenges arise.
Strong Job Market: Our region benefits from a diverse economy—tech, government, defense, healthcare—which supports income stability.
Desirable Location: Let’s be honest, people want to live here. Good schools, transit access, and job opportunities keep demand high.
[So, What Does This Mean for You?]
If You’re a Buyer: Don’t wait around hoping for a flood of foreclosures. There’s no sign of that happening anytime soon. However, with inventory improving, this may be your window to buy with a bit more breathing room.
If You’re a Seller: The market is still in your favor—especially if your home is priced right and move-in ready. Rising inventory means a little more competition, but strong pricing trends are still working for you.
If You’re an Investor: This isn’t a distressed market, but it is a stable one. That makes Northern Virginia a smart play for long-term value.
The data from early 2025 makes one thing clear: There is no foreclosure crisis in Northern Virginia. Our local market is holding strong, and while things are shifting toward balance, there’s no major risk of distressed sales flooding the market.
If you have questions about buying, selling, or investing in today’s market, I’d love to talk. As someone who’s lived and worked in Northern Virginia for over two decades, I’m here to help you make sense of the data—and make the best move for your future.
<<Sources>>
ATTOM Data – Foreclosure Rate by State (January 2025):
https://www.attomdata.com/news/most-recent/foreclosure-rate-by-state-january-2025/
NVAR – March 2025 Market Stats Press Release:
https://www.nvar.com/docs/default-source/pdfs/market-stats/march-2025-market-stats-press-release---final.pdf
Virginia Realtors – February 2025 Virginia Home Sales Report:
https://virginiarealtors.org/2025/03/25/key-takeaways-february-2025-virginia-home-sales-report/
CAVA Buys – Virginia Foreclosure Statistics:
https://cavabuys.com/virginia-foreclosure-statistics/
Northern Virginia Magazine – Housing Market Update (April 2025):
https://northernvirginiamag.com/home/real-estate/2025/04/10/novas-housing-market-saw-increases-in-home-prices-and-inventory-in-march/
Rocket Homes – Fairfax County Market Report:
https://rocket.com/homes/market-reports/va/fairfax-county
PR Newswire – Northern Virginia Market Growth (March 2025):
https://www.prnewswire.com/news-releases/northern-virginia-housing-market-shows-steady-growth-in-march-2025-302425827.html
"If you’ve been watching the real estate headlines and wondering whether we’re heading into another wave of foreclosu..."
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