Washington, D.C. Metro Housing Market Report – January 2025

 

Washington D.C. area buyers and sellers cautious in January. A new Presidential administration and higherthan-expected mortgage rates contributed to a slow start to the 2025 housing market. While closed sales were up compared to a year ago, new pending contracts fell by 6.4% year-over-year. The number of showings in the region down 6.5% compared to last January. Listing activity was also relatively slow. While the number of fresh listings increased from December’s record low, overall listing activity was down 4.1% compared to last January. Buyers that are in the market are taking more time to make an offer. The median days on market in January was 23, which was three days slower than last year and was four days slower than the December pace. Home prices are still rising in the region, though the pace of price growth has slowed. In January, the median sold price was up 4.4% compared to a year ago, the lowest year-over-year price change since October 2023.

 

Prospective buyers and sellers face uncertainty to start the 2025 housing market. New administration policies could have an outsized impact on the Washington D.C. area housing market, though it is still too early to predict if and how the market might be affected. Higherincome buyers in the region may be better positioned heading into the spring market, while first-time and moderate-income buyers still face affordability constraints.

 

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