Northern Virginia Inventory Rises Again as Home Sales Decline and Prices Increase

Active listings climb 30.7% year over year, driven by continued growth in condo and townhome inventory, while the median sold price rises 4.2%.

FAIRFAX, Va., Oct. 16, 2026 /PRNewswire/ -- Northern Virginia's housing market continued to see a substantial increase in available homes in September, extending a trend of growing condo and townhome inventory that has persisted for the past two months. Active listings rose 30.7% compared to September 2025, driven by a 49.7% year-over-year increase in condo and townhome inventory. Meanwhile, closed sales declined 7.5%, while the median sold price increased 4.2%, according to the Northern Virginia Association of Realtors® (NVAR).

The growing inventory is giving buyers more properties to consider, particularly in the condo and townhome segments. However, the increase in available homes has not translated into more closed sales or lower median prices. September's results point to a market in which buyers have more options, but high housing costs and limited overall supply continue to shape the path to homeownership.

"Northern Virginia has seen condo and townhome inventory grow over the past two months, and September's numbers confirm that this is an ongoing shift in the market," said NVAR CEO Ryan McLaughlin. "More available properties can give buyers greater choice and more opportunities to find a home that fits their needs. But the decline in closed sales, alongside continued price growth, shows that additional inventory does not automatically make homeownership more attainable. Affordability remains a significant consideration, particularly for first-time buyers, and expanding the supply of housing across a range of prices and types will be essential to meeting the needs of our region."

A total of 1,250 homes closed in September 2026, a 7.5% decrease from September 2025. Despite the growth in available listings, fewer transactions were completed than a year earlier. The contrast suggests that adding homes to the market is not, in and of itself, enough to generate more sales. Affordability, financing costs and whether available properties meet buyers' needs all continue to influence purchasing decisions.

The total volume of homes sold reached $1,105,117,806 in September, down 8.7% compared to the same month last year. The steeper decline in sales volume compared to the 7.5% drop in closed sales reflects a decrease in the overall dollar value of completed transactions. This points to a less active market than a year ago, despite the increase in available listings.

The median sold price was $744,950 in September 2026, an increase of 4.2% from September 2025. Prices continued to rise even as sales activity declined, indicating that the market's increased inventory has not eased upward pressure on home values. While buyers have more listings to consider, the median price remains a significant financial hurdle for many households seeking to purchase a home in Northern Virginia.

Average days on market remained unchanged at 28 days compared to September 2025. Even with substantially more homes available, properties took about the same amount of time to sell as they did a year earlier. This suggests that the additional inventory has expanded buyer choice without producing a broad slowdown in the pace of sales.

The composition of the growing inventory varies significantly by property type. Condo and townhome inventory continued their upward trend for the third consecutive month, while inventory for detached homes increased just 5.7% year over year. Months of supply reached 2.5 in September, an increase of 29.5% compared to September 2025. Although supply has expanded, 2.5 months remains below the roughly five to six months commonly associated with a balanced housing market, indicating that overall inventory remains relatively tight.

"The composition of the new inventory is an important part of this story," McLaughlin said. "The significant growth in condo and townhome listings gives buyers more options in those segments, while the much smaller increase in detached homes shows that the change is not uniform across the market. More listings are a welcome development, but we need to continue expanding housing choices across property types and price points. That is especially important in a region where home prices remain high, and many prospective buyers are still working to find a home they can afford."

In neighboring Loudoun County, closed sales fell 17.8% year over year to 338 in September 2026, while total sales volume declined 18.6% to $288,344,660. The median sold price edged up 0.8% to $758,500, indicating that home values continued to rise despite weaker sales activity. Average days on market increased 6.9% to 31 days, while active listings climbed 34.1% to 1,031. Months of supply reached 2.41, up 37.7% compared to September 2025. As in the broader Northern Virginia market, Loudoun County saw more homes available for sale alongside fewer completed transactions, although the decline in sales was steeper.

September's results illustrate the challenges and opportunities in a changing housing market. The continued growth in condo and townhome inventory is expanding buyer choice, but declining sales, rising prices and relatively limited overall supply show that more housing options are still needed. NVAR's NOVA Housing Supply Framework addresses this need by advancing locally adaptable strategies to increase housing opportunities and support a broader range of housing choices across Northern Virginia.

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 September 2026 regional home sales compared to September 2025 for Northern Virginia, with data derived from Bright MLS as of October 12, 2026 (total sales and listings may not include garage/parking spaces):

• The number of closed sales in September 2026 was 1,250 units. This was a 7.5% decrease compared to September 2025.
• The volume sold in September 2026 was 1,105,117,806. This was an 8.7% decrease compared to September 2025.  
• The median sold price in September 2026 was $744,950. This was up 4.2% compared to September 2025.
• The average days on market was 28 days in September 2026. This was unchanged compared to September 2025.
• The number of new pending sales in September 2026 was 1,204 units. This was down 16.2% compared to September 2026.  
• The number of active listings in September 2026 was 3,477 units. This number was up 30.7% compared to September 2025.
• The months of supply of inventory in September 2026 was 2.5. This was up 29.5% compared to September 2025

NVAR Charts, Graphs, Social Media for September 2026 NVAR Housing Stats  
September Housing Data: Click here.
Regional Jurisdiction Infographic: Click here.
NVAR Region Infographic: Click here.
2026 Mid-Year Regional Housing Market Forecast: Click here.
These links are accessible from the Market Stats page here: Click here.

About NVAR
The Northern Virginia Association of Realtors® (NVAR) serves as the voice of real estate in the Greater Northern Virginia Region. NVAR is dedicated to enhancing Realtor® success by delivering exceptional value, driving innovation, and impacting the industry. Headquartered in Fairfax, Virginia, with a new Member Experience Center located in Loudoun County, NVAR supports its 13,000 members with essential resources, including industry education, advocacy, networking, and professional development opportunities. The Association is committed to promoting ethical practices and excellence in real estate. It advocates on behalf of homebuyers, sellers, renters, and commercial tenants who are directly affected by local, state, and federal policy decisions impacting affordability, property rights, and quality of life. NVAR strives to elevate the standards of the real estate industry and to contribute to the overall growth and prosperity of the Washington DC Metropolitan Area and beyond. nvar.com. 

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SOURCE Northern Virginia Association of Realtors® (NVAR)