The DMV (DC, Maryland, Virginia) Market looks to see Increased Activity from Home Buyers in 2025!

The DMV will likely see more home sales and inventory next year — but also higher prices, per Bright MLS' 2025 housing market outlook.

Local real estate activity is expected to continue picking up after sales and inventory decreased, due to would-be buyers and sellers sitting on the sidelines amid climbing rates and prices.

• Mortgage rates are expected to drop in 2025, per Bright, which forecasts more homes will hit the market from sellers waiting for lower rates.

• But there's also pent-up demand from buyers who have similarly been crossing their fingers for a lower mortgage rate, meaning home prices will stay high.

One potential reason for increased DMV sales activity — workers moving closer to offices amid the switch from work from home to work in office.

• The Trump, has called for federal workers to be in offices five days a week. Same with local employers like Amazon.

The median home sale price in the D.C. region is expected to jump from $609,700 in 2024 to $638,310 in 2025 — a 4.7% increase.

• The number of home sales is expected to jump from 49,630 to 53,550 — a 7.9% spike.

• And the number of end-of-year active listings is predicted to go from 5,710 to 6,507 — a 14% jump.

• Mortgage rates are likely to decrease, but it's also possible they'll be volatile, which could affect the market, per the report.

"There is a possibility of economic uncertainty growing in the coming year, and some individuals and families are going to feel less financially secure," says the report.

The Washington, DC housing market is somewhat competitive. Homes in Washington, DC receive 2 offers on average and sell in around 75 days. The median sale price of a home in Washington, DC was $630K last month, up 5.4% since last year. The median sale price per square foot in Washington, DC is $465, down 0.21% since last year.

Washington, DC Housing Market Trends

What is the housing market like in Washington, DC today?

In December 2024, Washington, DC home prices were up 5.4% compared to last year, selling for a median price of $630K. On average, homes in Washington, DC sell after 75 days on the market compared to 60 days last year. There were 568 homes sold in December this year, up from 473 last year.