Housing sales decline in NOVA, Hampton Roads

Housing sales last month decreased year-over-year in Northern Virginia and Hampton Roads, although inventory and median sales prices rose in both regions.

Northern Virginia

The Northern Virginia Association of Realtors reports that 1,764 homes were sold in May, a 4.2% decrease compared with May 2024. The total sales volume for the month was $1.56 billion, down 1% from May of last year.

However, NVAR reports that despite the decline in sales, the median sale price rose 3.9% to $789,500.

“We’re seeing a market that’s finding its footing,” NVAR CEO Ryan McLaughlin said in a statement. “Transaction volume has cooled modestly, which isn’t unexpected given broader economic headwinds and buyer sensitivity to interest rates. At the same time, price appreciation and rising inventory are signs that the market remains fundamentally sound — just adjusting to a new rhythm.”

New pending sales in May rose 9.5% to 1,897 units compared to May 2024.
The association reports that active listings surged to 2,636 units in May, up 50% from the same time last year. New listings totaled 1,884 units, up 1.5%.

Homes spent an average of 15 days on the market last month — a 40% increase from May 2024.

“A growing number of listings means buyers now have more choices — and time to make them,” McLaughlin said in a statement. “But this isn’t necessarily a return to a buyer’s market. Sellers who price competitively are still seeing strong results, especially in Northern Virginia’s most desirable neighborhoods.”

The association believes rising interest rates, affordability concerns and a cooling pace “compared to the frenzied highs of previous years” places buyers and sellers in a more strategic playing field.

“Buyers may have more leverage, but affordability remains a concern for many,” said NVAR board member Christina Rice in a statement. “Sellers are still in a good position but may need to adjust expectations on timing and pricing. It’s not an easy market — it’s a smarter one. The key is working with experienced professionals who understand how to navigate it.”

NVAR reports home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church, and the towns of Vienna, Herndon and Clifton.

Hampton Roads

Hampton Roads also saw a slight decrease in housing sales for May, although its median selling price reached a record high, according to data released Tuesday by the Real Estate Information Network (REIN).

In May, 2,445 home sales closed in the region, up from 2,193 in April, but down 2.1% from 2,498 in May 2024. There were 2,582 pending sales for the month, down from 2,597 pending transactions in April, but up 5.9% from 2,438 at the same time last year.

May’s months supply of inventory (MSI) — a measure of how many months there would be homes on the market if no new inventory were added — was 2.59, compared with 2.44 in April and 2.07 in May 2024

“After quite a few years of a very tight market, consumers who are looking to buy a home this summer should be very pleased with the selection they have right now,” said REIN board President Barbara Wolcott of Berkshire Hathaway Home Services RW Towne Realty in a statement. “Inventory is also at its highest point in nearly five years, so buyers have plenty of homes to choose from.”

Active listings rose to 5,276 in May, up 23.7% year-over-year from 4,264 in May 2024. There were 4,980 active listings in April. Wolcott said May’s active listings were the most since July 2020, when there were 5,576.

“Here in Hampton Roads, it’s still not technically a balanced market, but buyers certainly have more selection than they’ve had in quite some time,” she said.

The median sales price of homes sold during May was $368,900, up from $350,000 in April, and up 4.7% year-over from $352,392 in May 2024. The MSP is a 2.2% increase over the previous high of $360,000 during June of last year. Homes spent a median of 18 days on the market in May, one day less than April’s 19, but three days more than May 2024 when it was 15.

Founded in 1969, REIN is a regional multiple listing service that covers an area stretching from Williamsburg east to Virginia Beach and south across the North Carolina border.