🏘️ DC Metro Housing Market Update 2025: Trends, Hot Neighborhoods, and Buyer Insights”

Hello and welcome back to my blog! This week, I’m sharing the latest updates on the DC metro housing market, using the most current data available. Here’s a snapshot of what’s happening:

  • Inventory rising across the board: Active listings in Washington, D.C. increased by 25.1% year-over-year, marking the highest level since 2022.1
  • Median sale prices remain firm: The median sale price in the D.C. metro area reached $640,000 in July 2025, up 2.4% from the previous year.2
  • Homes are staying listed longer: The average days on market for homes in the D.C. metro area increased from 52 days in 2024 to 57 days in 2025.3
  • Pending sales slowing modestly: Pending home sales in June 2025 were down 0.3% year-over-year, indicating a slight slowdown in market activity.4

📍 Hot Neighborhoods: Where Activity Is Heating Up

Pentagon City / National Landing (VA)

Pentagon City has undergone significant urban transformation, driven by the arrival of Amazon’s HQ2 and increased investment in local businesses and infrastructure. The area now boasts updated parks, a bustling retail scene, and cultural programming like art pop-ups and seasonal festivals. Limited condo inventory is priced between $625,000 and $775,000.5

Luxury Epicenter: Georgetown, Kalorama, Spring Valley

Notable luxury home purchases in D.C. include a $23 million mansion in Woodland Normanstone and a $25 million all-cash purchase in Foxhall. These areas remain stable investment zones—ideal if you're seeking trophy real estate or equity performance.6

Suburban Powerhouses: Arlington, Fairfax, Montgomery County

  • Arlington: Pending contracts increased by 35.8%, and showings rose by 48.2%, indicating strong demand.7
  • Montgomery County: Listings were up by 16.5%, and showings also increased, suggesting good traction for buyers and sellers.8

🏠 Budget & Entry-Level Inventory: Condos & Rowhomes

Condos: Inventory for condominiums in D.C. is currently up 59.2% on a 90-day rolling average, compared to 29.1% for single-family homes.9

Rowhomes: Neighborhoods like Petworth, Capitol Hill, Brookland, and Trinidad offer relatively affordable single-family options, often under $700K, with solid equity gains over the decade.10

🧭 What Buyers Should Know by Property Type

Property Type Where to Look Price Range (Approx.)
Luxury/Semi-Luxury Kalorama, Georgetown, Spring Valley $1M to $25M+
Condos / Entry-Level Pentagon City, urban rowhome areas $500K–$800K
Suburban Single-Family Arlington, Fairfax, Montgomery County $800K–$1M+
Value Rowhomes Petworth, Brookland, Capitol Hill ~$700K–$850K

🧠 Buyers on the Sidelines

  • Opportunity, Not Risk: Cooling dynamics create space for strategic buying in condos or long-term investments in suburbs.
  • Neighborhood Matters Now More Than Ever: Each micro-market is shifting differently — knowledge of these shifts adds real value to the decision-making process.
  • Evidence Over Hype: Supportive concrete data: rising inventory, stabilizing prices, longer days on market — facts build confidence.
  • Your Partner, Not a Pusher: Emphasize loan pre-qualification, local tour scheduling, and thoughtful exploration — not rushed panic.

✅ Bottom Line

For buyers, a wider selection and longer timelines are creating less pressure. For sellers, demand remains steady when pricing is strategic. Whether you're eyeing a $600K condo in Petworth or a $2M rowhouse in Georgetown, the current market is defined by greater balance and choice.

As always thank you for reading and feel free to comment or like the page...

📍Follow my blog

Fergus O’Brien, REALTOR®
📍 DC · MD · VA
📧 fergus.obrien@lnf.com
🌐 longandfoster.com/FergusOBrien
📱 Follow on IG: @fergusobrienrealtordmv

Sources

  1. Bright MLS Market Data
  2. Bright MLS Median Pricing Report
  3. Bright MLS Days on Market Report
  4. Bright MLS Pending Sales Report
  5. ARLnow Coverage on National Landing
  6. Washington Business Journal: Luxury Sales
  7. GCAAR Arlington Housing Report
  8. Montgomery County Housing Data
  9. Bright MLS Condo Inventory Report
  10. Urban Land Institute: D.C. Rowhome Market

Comments

  1. FredAugust 28, 2025 at 2:23 PM

    Love this update! You make the market feel approachable with both the numbers and the neighborhood highlights. I’m especially curious to hear more about places like Trinidad—it sounds like an area with a lot of potential. Feel free to reach out to me if you’d like to share more about it!

    ReplyDelete

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