Low supply and rising prices are shaping Washington D.C.'s market in 2025.
If you’re considering buying or selling real estate in Washington, D.C., this year, you need to be informed. As of January 2025, the local real estate market remains consistent with what’s been seen over the past seven or eight years: low supply. This limited inventory has been a key driver in market trends, particularly in Northern Virginia. So, what does this mean for buyers and sellers in the area? Let’s break it down:
1. Home prices are rising. Between January and November of 2024, home prices in Northern Virginia appreciated by over 8%. Despite interest rates ranging from 7% to 7.5%, prices climbed due to the ongoing supply shortage.
"The D.C. real estate market in 2025 is all about low supply and strong demand. "
2. Seller's market. For those considering selling, the current market may present favorable conditions. There is little competition in most areas and it makes the perfect time for listing.
For example, a property in South Arlington was listed the week before Christmas, primarily because it was ready to go and faced no competition. This resulted in over 40 private showings, more than 150 visitors during a two-day open house, and offers that exceeded the last comparable sale by $100,000 in April 2024.
3. Buyers are adjusting to higher interest rates. While 6.5% to 7% rates are a far cry from the historically low levels seen a few years ago, buyers have started to accept these as the new norm. Buyers have been waiting on the sidelines and are now ready to take action.
4. Buying now could save money in the long run. For buyers, acting sooner is a smart move. A home bought in January 2024 would have gained 8% in value by November. Prices are not dropping, so buying now can mean paying less than if you wait.
The D.C. real estate market in 2025 is all about low supply and strong demand. Sellers have an opportunity to benefit from the current conditions, and buyers who move quickly can avoid paying higher prices down the road. If you want to know more about buying or selling in this market, don’t hesitate to reach out. You can contact me at (703) 286-9771 or send me an email at [email protected]. I look forward to hearing from you!
Starting the upfront approval process early ensures buyers are well-positioned for success and reduces stress when the right property comes along.
