Northern Virginia Housing Market Builds Momentum in May with Double-Digit Growth in Sales and Market Volume

Strong buyer demand fueled increases in sales and home values as inventory remained constrained across the region.

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Home & Garden

The Northern Virginia housing market continued its strong spring momentum in May 2026, with double-digit increases in both closed sales and total sold dollar volume reflecting sustained buyer demand despite ongoing inventory constraints, according to the Northern Virginia Association of Realtors® (NVAR).

In Alexandria, NVAR reports for May 2026:

  • Average home sale price of $878,327 rose 8.7% from May 2025
  • Median home sale price of $735,000 decreased 3.4% from May 2025
  • Home sales increased 6.8% to 220.

(Ever notice that "average" and "median" home prices aren't the same number? Here's the difference. The average is just every sale added up and divided by how many homes sold. The median is the one right in the middle—half the homes sold for more, half for less. They can drift apart when a few big-ticket sales nudge the average higher, which is why the median usually paints a more honest picture of what a typical home actually went for.)

Also a note to consider about the Alexandria real estate market — many consider parts of Fairfax County such as Fort Hunt, Belle Haven, Mount Vernon and Kingstowne to be in the Alexandria area, although they are included in the Fairfax County statistics.

Overall in Northern Virginia, closed sales reached 1,958 units in May 2026, an 11% increase compared to May 2025. The significant year-over-year increase reflects continued buyer confidence and a healthy pace of transactions as the spring market reached its seasonal peak.

“May’s housing data demonstrates the continued strength and resilience of Northern Virginia’s real estate market,” said NVAR CEO Ryan McLaughlin. “Despite affordability challenges and limited housing inventory, buyers remain committed to the market, supported by the region’s strong economy, stable employment base, and enduring appeal as one of the nation’s premier places to live and work.”

The increase in transactions also translated into significant gains in overall market value. Total sold dollar volume reached $1,817,100,688 in May 2026, representing a 16.4% increase compared to the same time last year. The increase outpaced growth in closed sales, reflecting continued strength in home values and sustained activity across higher-priced market segments.

The median sold price climbed to $812,012, up 2.9% year-over-year. Although the pace of appreciation moderated compared to recent years, home values continued to trend upward, underscoring the ongoing imbalance between buyer demand and available inventory throughout much of Northern Virginia.

“The continued growth in both transaction volume and home values reinforces the long-term stability of our local housing market,” McLaughlin said. “Even as inventory gradually improves, demand continues to exceed supply in many communities, creating competitive conditions that support price stability while maintaining a healthy level of market activity.”

Homes spent an average of 15 days on the market this May, unchanged from May 2025. The steady pace of sales indicates that well-priced homes continue to attract strong buyer interest despite modest increases in available inventory.

Active listings increased to 2,733 units, a 3.7% increase compared to May 2025. While the increase provides buyers with slightly more choices than last year, available inventory remains well below levels associated with a balanced housing market.

“Seeing more homes come onto the market is encouraging, but inventory remains constrained relative to the number of buyers looking to purchase throughout Northern Virginia,” said NVAR President Rob Carney, TTR Sotheby’s International Realty. “The market continues to demonstrate remarkable resilience, supported by strong regional fundamentals and sustained demand across a wide range of communities and price points.”

Months of supply measured 1.93 months in May 2026, down 1.2% compared to May 2025. Inventory levels remain significantly below the five to six months generally associated with a balanced market, reinforcing the competitive environment that continues to characterize Northern Virginia housing.

Neighboring Loudoun County’s housing market also posted solid gains in May 2026. Closed sales increased 6.8% year-over-year to 537 transactions, while total sold dollar volume climbed 6.8% to $473,514,480. The median sold price rose 2.0% to $790,256, and homes sold even more quickly than a year ago, averaging just 13 days on the market — a 7.1% decrease from May 2025. Inventory remained constrained, with active listings declining 8.8% to 783 units and months of supply falling 8.6% to 1.8 months, underscoring continued competition for available homes throughout the county.

Taken together, May’s housing data reflects a Northern Virginia market that remains fundamentally strong, with increases in sales activity, home values and overall market volume demonstrating continued confidence in the region’s long-term housing outlook. Although inventory has shown modest improvement in some local markets, supply remains limited relative to demand, positioning the market for continued strength as the summer housing season begins.

To help mitigate the housing supply challenge, NVAR recently launched its NOVA Housing Supply Framework — a bold, regionally unified and locally adaptable strategy to increase housing supply, protect affordability and preserve Northern Virginia’s economic competitiveness. The Framework represents an unprecedented level of collaboration among Realtors®, builders, and the business community, uniting behind a single, focused policy platform designed to support predictable, efficient housing production and expanded homeownership opportunities.

McLaughlin stressed the need for additional housing during a special forum addressing the challenges facing our region, held at George Mason University. “Our number one challenge? Very simply, we need more housing supply,” he said. “We’re going to need to be shifting our mindset — take what we learned over the past and what we’ve done over the past 30 years,” McLaughlin added. “Not just talking about it, but actual solutions.”

Background

The Northern Virginia Association of Realtors® reports on home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax, and Falls Church and the towns of Vienna, Herndon, and Clifton. Below are May 2026 regional home sales compared to May 2025 for Northern Virginia, with data derived from Bright MLS as of June 9, 2026 (total sales and listings may not include garage/parking spaces):

  • The number of closed sales in May 2026 was 1,598 units. This was an 11.0% increase compared to May 2025.
  • The volume sold in May 2026 was $1,817,100,688. This was a 16.4% increase compared to May 2025.
  • The median sold price in May 2026 was $812,012. This was up 2.9% compared to May 2025.
  • The average days on market was 15 days in May 2026. This was the same as May 2025.
  • The number of new pending sales in May 2026 was 1,903 units. This was up 0.3% compared to May 2025.
  • The number of active listings in May 2026 was 2,733 units. This number was up 3.7% compared to May 2025.
  • The months of supply of inventory in May 2026 was 1.93. This was down 1.2% compared to May 2025.

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