Agent Insight: Market Update in the DMV
Agent Insight: Market Update in the DMV
By: Joe DeFilippo
February 12, 2025
As of February 2025, the Washington, D.C. housing market is showing a mix of trends that is property and area specific. Personally in the past month, I have written offers for buyers where we were consistently competing with multiple offers in Northern Virginia to writing offers on properties that have been on 100+ days in DC. However, the number of homes sold increased by 19.8%, indicating continued buyer interest. Mortgage rates are expected to stabilize between 6% and 7% throughout the year, which could support further market activity.
Homes are taking longer to sell, with the average time on the market rising to nearly 60 days in Washington, DC, up from 48 days from February 2024. This suggests a shift toward a more balanced market, where buyers have more negotiating power.
Some neighborhoods, however, are bucking the trend. Capitol Hill, for example, saw a notable rise in home prices, with its median sale price reaching $985,000—an increase of 14.5% compared to last year. This highlights the diverse nature of the D.C. market, where local conditions can vary significantly by neighborhood.
Looking ahead, experts anticipate a moderate pace of growth in 2025, supported by declining interest rates and increased housing supply. While affordability remains a concern, especially for first-time buyers, these factors could help create a more stable and accessible market. Investors may also find opportunities as demand continues to shift, particularly in areas with strong price resilience.
Overall, the D.C. housing market is in a period of transition, with more inventory attracting buyers and longer selling times giving them more options. While some neighborhoods remain competitive, the market as a whole appears to be moving toward a more balanced state. If mortgage rates continue to stabilize, 2025 could bring more opportunities for both buyers and sellers in the nation’s capital.
If you have any questions about market conditions, it is imperative to make sure that your agent knows what type of property you are looking for and in what neighborhood because the answer can greatly vary.
Whether you are thinking about buying a new home, selling your existing home, or if you still have questions about the current market, reach out to your Wardman Residential at Compass Team Member who will be happy to schedule a convenient time to strategize with you about your real estate and financial goals. Our team specializes in helping you maximize the value of your home and helping you make the best financial decision.