What to expect from the DMV real estate market in 2025
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The DMV will likely see more home sales and inventory next year — but also higher prices, per Bright MLS' 2025 housing market outlook.
The big picture: Local real estate activity is expected to continue picking up after sales and inventory decreased post-COVID, due to would-be buyers and sellers sitting on the sidelines amid climbing rates and prices.
- One catalyst: Mortgage rates are expected to drop next year, 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.
The intrigue: One potential reason for increased DMV sales activity — workers moving closer to offices amid the switch from WFH to IRL, predicts the report.
- Vivek Ramaswamy, who's co-leading the Department of Government Efficiency task force alongside Elon Musk, has called for federal workers to be in offices five days a week. Same with local employers Amazon and The Post.
By the numbers: 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.
Yes, but: Don't get too jazzed — the DMV's forecasted end-of-year housing supply for 2024 and 2025 is still below pre-COVID levels. So are the number of anticipated home sales for this year and next year.
What we're watching: While mortgage rates are likely to decrease, it's also possible they'll be volatile, which could affect the market, per the report.
- Plus: "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.