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

Housing Market Trends

Sales lower in December and overall 2025 sales below 2024 in the D.C. Metro Area. Closed sales in the final month of the year in the D.C. metro area were 2.0% lower than December 2024. Overall, 2025 sales tracked 1.1% lower than 2024. New pending sales were modestly better, up 1.0% in December, but overall stayed behind 2024. Within the D.C. region, there were different trends in local markets. Loudoun and Arlington counties had gains in closed sales in 2025 compared to 2024. Meanwhile, Prince Georges County had significantly fewer sales in 2025. Federal government layoffs, economic uncertainty, and continued affordability pressure put a damper on buyers. Sellers were a bit more active in the 2025 market relative to 2024. New listings for the year were 6.4% higher with gains across all counties except D.C. proper. The median price in the region rose 3.6% in 2025, but price growth has started to soften.

Market Outlook

The Washington D.C. area housing market has been burdened by multiple headwinds over the past year. In 2026, we should see falling rates, improved affordability and more inventory. There will still be a lot of uncertainty in the market. Sellers should expect that buyers will have more leverage and price growth will soften further, with price drops possible in some local markets.

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