We're halfway through the year and 6 months into a Presidential Administration whose policies and actions have caused lots of speculation about the impacts on the economy and the real estate market in the DC Metropolitan area (DMV). These actions are still occurring and playing themselves out, but here's what we're seeing so far:
- Overall across the DMV, the median sale price is up 3.3% year to date (YTD) compared to the same time in 2024.
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Inventory in the DMV is up 41.2% YTD compared to 2024. Generally it's still down compared to pre-pandemic levels, except supply is higher than pre-pandemic levels in Arlington, Alexandria, and the District. In these areas, certain types of housing are driving the increase in inventory. Comparing Q2 2025 to Q2 2019, the biggest increases in the District and Alexandria are in the condo/coop market (up 109% and 112% respectively). In the District rowhouses are also up significantly at 104%. In Arlington the biggest increase is in the market for detached houses (up 24%).
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New listings are up 7.4% year to date. Keep in mind that going into 2025, the regional Multiple Listing Service projected a 14% increase in the number of new listings as sellers who need financing for their next purchase grow impatient with waiting and accept higher mortgage rates as a new normal. At this point, the overall data for the DMV don't support the idea that there's been a dramatic increase in new listings attributable to the actions of the Administration.
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The growth in inventory is a product of an increase in listings that has not been accompanied by a commensurate increase in sales. High home prices and high mortgage rates coupled with market uncertainty has dampened buyer demand. Closed sales are down 0.5% YTD overall relative to 2024. That said, some areas where inventory has grown the most have also recently seen an increase in properties going under contract when comparing data for June 2025 vs June 2024. This includes the District at +8.1%, Arlington at +10.9%, and Alexandria at +6.7%.
Year to date, we've generally seen the market start to swing in the favor of buyers. The past several years have tended to heavily favor sellers, so in many ways it makes sense to think of this as a rebalancing. Of course, there is significant variability geographically and by sector. If you'd like to take a deeper dive into your neighborhood or a neighborhood you're interested in, reach out to us. We're happy to discuss!
