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

Washington D.C. area housing market slow in light of economic uncertainty. New pending sales dropped 9.5% year-over-year with 3,485 contracts in February 2025. This is the slowest pace of February contract activity since 2008. Across the D.C. area, only Loudoun County, VA had more new pending sales than a year ago (+17.3%). Listings were also lower in February, down 2.6% compared to a year ago. Loudoun County (+26.8%) and Montgomery County, MD (+2.3%) were the only two major markets in the region where new listing activity was higher. At the end of February, there were 6,857 homes for sale in the D.C. area, up nearly 30% from a year ago. Inventory has expanded across housing types, but only condo active listings have recovered compared to their pre-pandemic levels. The median sold price in February 2025 was $597,000, a 6.6% increase compared to last year. Prices have risen by more than 40% over the past five years in the Washington D.C. region.

 

Federal government workforce cuts and back-to-the-office mandates likely will have an impact on the region’s housing market, but it is too soon to tell the extent. More inventory and softer price growth would be welcome changes for prospective buyers in the market this spring. But both buyers and sellers should expect uncertainty in the weeks leading into the spring market. 

 

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