What is happening in the DC housing market
Fleur Howgill June 7, 2025
Fleur Howgill June 7, 2025
Despite headlines of uncertainty, the Washington, DC housing market is entering a period of exciting opportunity and renewed accessibility. For buyers, sellers, and investors alike, the shifting landscape offers fresh advantages not seen in years.
After several years of tight inventory and intense bidding wars, DC is finally seeing a healthier flow of homes coming to market — inventory is up nearly 47% year-over-year. This means buyers now have real choices without the pressure of aggressive competition.
But make no mistake: this is not a market in decline. It’s simply moving into balance. Sellers who price strategically and present their homes beautifully are still receiving strong offers, particularly in highly desirable neighborhoods.
Home prices in the region remain remarkably stable, with the median sold price in March at $625,000 — up 4.2% compared to last year. That’s a solid sign of long-term market confidence. In fact, DC continues to outperform many other metro areas in terms of price retention.
For buyers, particularly those who were sidelined during the frenzied pandemic-era market, this is a golden window to re-enter. There’s room to negotiate, yet values are holding firm — a rare and promising combination.
The luxury market remains strong, buoyed by a wave of high-net-worth buyers — including tech leaders and political insiders — investing in Kalorama, Georgetown, and along Embassy Row. Meanwhile, the multifamily and rental sectors are thriving, with rising demand and low vacancy rates, especially in workforce housing.
If you’re an investor, DC still offers incredible fundamentals: high demand, strong employment, and a steady influx of new residents. The rental market remains one of the most resilient in the nation.
Yes, changes to the federal workforce and return-to-office policies have prompted movement — but that movement is creating opportunity. Long-time homeowners are listing, unlocking homes that haven’t been on the market in decades. This is especially exciting for buyers eager to find character-filled row homes and historic properties in central DC.
And with mortgage rates stabilizing, more buyers are reentering the market — many with renewed confidence and broader options.
The next chapter in DC real estate is not about contraction — it's about correction and growth. We’re seeing a reset that brings greater accessibility, more transparency, and a return to thoughtful buying and selling.
In short, the DC market is evolving — and that’s a good thing. Whether you're planning to buy, sell, or invest, now is the time to act with strategy and confidence. As always, working with a seasoned agent who understands these shifts can make all the difference.
Stay up to date on the latest real estate trends.
Amid calls for repeal, Initiative 82's rollout has been pushed from July to October.
Fleur and Veronique's passion for travel has significantly enriched their understanding of diverse cultures and unique requirements. Their personal experience as expatriates further enhances their ability to cater to the needs of an international clientele seeking insight into life in Washington DC. Fleur's remarkable history of achievements serves as a testament to her expertise. Don't hesitate to contact Fleur's team to discover more about how they can assist you!