Market Trends

Agent Insight: DMV Market Update, February 2025

Multiple offers in Northern Virginia, 100-plus days on market in parts of DC. Agent Joe DeFilippo breaks down what the early-2025 numbers said about a market in transition.

Originally published February 12, 2025. For the latest numbers, read More Homes, More Room to Negotiate: The DMV Housing Market This Fall.

By Joe DeFilippo, Wardman Residential at Compass

As of February 2025, the Washington, DC housing market is showing a mix of trends that are specific to the property and the area. In the past month alone, I have written offers for buyers competing against multiple offers in Northern Virginia, and offers on properties that had been on the market for 100-plus days in DC.

Even so, the number of homes sold increased by 19.8%, a sign of continued buyer interest. Mortgage rates are expected to stabilize between 6% and 7% through the year, which could support more market activity.

Homes are taking longer to sell

The average time on the market in Washington, DC has risen to nearly 60 days, up from 48 days in February 2024. That points to a shift toward a more balanced market, where buyers have more negotiating power.

Some neighborhoods are bucking the trend

Not every neighborhood is slowing down. Capitol Hill, for example, saw a notable rise in home prices, with its median sale price reaching $985,000, up 14.5% from last year. It is a good reminder of how diverse the DC market is, and how much local conditions can vary from one neighborhood to the next.

Wardman Insight

The same month brought bidding wars in Northern Virginia and 100-day listings in DC.

The right strategy depends on the exact property and neighborhood, not the headlines.

What to expect in 2025

Looking ahead, experts anticipate a moderate pace of growth in 2025, supported by easing interest rates and more housing supply. Affordability remains a concern, especially for first-time buyers, but these factors could help create a more stable and accessible market. Investors may also find opportunities as demand shifts, particularly in areas with strong price resilience.

Overall, the DC housing market is in a period of transition. More inventory is attracting buyers, and longer selling times are giving them more options. Some neighborhoods remain competitive, but the market as a whole appears to be moving toward a more balanced state. If mortgage rates continue to stabilize, 2025 could bring more opportunities for both buyers and sellers in the nation’s capital.

Talk to an agent who knows your neighborhood

If you have questions about market conditions, make sure your agent knows exactly what type of property you are looking for and in which neighborhood, because the answer can vary a lot.

Whether you are thinking about buying, selling, or just want to understand the current market, reach out to Wardman Residential at Compass. We will happily set up a time to talk through your real estate and financial goals, and help you make the best decision for your next move.

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