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

by Danielle Odagbodo

Housing Market Trends

Opportunistic buyers are taking advantage of lower rates, more inventory in the Washington, D.C. area market. In August, there were 4,264 closed sales across the region, which was 2.0% lower than a year ago. However, buyers were active in August, putting contracts on 4,217 homes, which was a 2.9% uptick from last August.

New listings were down 2.7% year-over-year, and inventory is growing more slowly, but buyers in August took advantage of easing mortgage rates and more leverage with sellers.

The median sold price in August was $625,000, which was up 2.1% compared to a year ago. Price growth has been slowing since the beginning of the year, and in August, median sold prices were down year-over-year in Montgomery and Prince George’s counties.

The pace of the market has slowed considerably over the past few months. The median days on market in August was 19, which is nine days slower than last August.

Market Outlook

The Washington, D.C. area housing market has slowed but it has not stalled out. Uncertainty surrounding federal government layoffs and budget cuts have made prospective buyers and sellers more cautious. Slightly lower rates and slower home price appreciation, or even year-over-year declines, should bring more buyers out this fall though sales activity is likely to remain relatively subdued.

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