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

Housing market conditions uncertain in the Washington D.C. metro area. A drop in mortgage rates boosted home sales in September, though the outlook for the area housing market remains uncertain. There were 3,894 closed sales in September across the D.C. region, a 4.4% increase over last year. However, the number of new pending sales fell by 3.3% year-over-year as mortgage rates stabilized and concerns about a federal government shutdown weighed on potential buyers. Regionally, home price growth has stalled. In September, the median sold price in the region was $600,500, up just 0.3% from a year ago. However, in September there was a lot of variation in prices across the Washington D.C. metro. Homes are taking much longer to sell. In September, the median days on market in the Washington D.C. metro area was 21 days, up 10 days from last September. 

 

The Washington D.C. area has been disproportionately impacted by federal workforce layoffs and budget cuts and now faces the potential of a lengthy government shutdown. Some buyers will be able to capitalize on lower rates and more inventory. Overall, however, expect slower home sales and softer home prices in fall amidst the ongoing uncertainty. 

 

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