Washington DC
Housing Market
The landscape of Washington DC’s housing market evolves with shifting home prices and demand. Houzeo’s housing market report tracks these changes in supply and demand across DC. Our report offers real-time insights to help you make informed decisions.
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MigrationWashington DC Housing Market Overview
The Median home price in Washington DC shows a sharp dip of 9.8% YoY as of January 2025. The fluctuations in home prices indicate the strength of a housing market. The median price is $552,500 which dropped from $629,000 in December 2024. However, it’s expected to grow during the peak season of summer. Moreover, the number of homes sold has increased by 21.4% YoY.
You can also check the market competitiveness through median days on the market. DC homes now spend a staggering 90 days on the market before going under contract. In summer, this number may drop to 55-75 days. When homes sit longer on the market, it gives buyers more breathing room, and the market shifts towards a balanced state. These metrics collectively indicate changes in the DC housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. DC homes now spend a staggering 90 days on the market before going under contract. In summer, this number may drop to 55-75 days. When homes sit longer on the market, it gives buyers more breathing room, and the market shifts towards a balanced state. These metrics collectively indicate changes in the DC housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You get more negotiation power, thanks to the huge price drop and a longer median period on the market. However, median home prices in Washington DC are higher than the national average. This, combined with rising mortgage rates, make the cost of housing in Washington DC expensive. Make sure you factor in all additional costs if you plan on buying a house.
- If You're a Seller: Despite the high prices, this is not the most favorable time for sellers, as homes are spending a longer time on the market. However, a jump of 21.4% in the number of homes sold signals opportunities for you to earn a profit on home sales.
Median Sale Price
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Washington DC
Washington DC Housing Supply
The inventory of Washington DC houses has grown by 11.9% in January 2025. It’s a trend that typically continues to rise post February and March. This year, it’s projected to increase by a minimum of 15% YoY. New constructions will also add to the housing inventory. However, high mortgage rates may shrink home sales. Currently, there are 2,230 Washington DC homes available for sale. The market currently leans towards sellers with 3 months of supply.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: Due to the increase in housing inventory, you’re likely to face some competition. You may have to wait a little for home prices to become stable. If you see a further growth in inventory level and a dip in the median sale price, you can move to buy your dream home in DC.
- If You're a Seller:The 3-months supply period favors you. Act fast and sell your home before more supply hits the Washington DC real estate market. Rising inventory could lower demand and lead to fewer offers. You should focus on staging and marketing your home to attract buyers.
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Washington DC Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell above the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
In January 2025, there were as many Washington DC houses selling above the list price as those selling below the list price in January 2025. The percentage of homes selling above the list price (now 21.6%) tends to increase in spring and summer. Meanwhile, there are presently 20.6% homes with price drops, up 2.3 points year-over-year. The 98% sale-to-list price ratio suggests opportunity for negotiation.
What Does It Mean for Home Buyers and Sellers?
In January 2025, there were as many Washington DC houses selling above the list price as those selling below the list price in January 2025. The percentage of homes selling above the list price (now 21.6%) tends to increase in spring and summer. Meanwhile, there are presently 20.6% homes with price drops, up 2.3 points year-over-year. The 98% sale-to-list price ratio suggests opportunity for negotiation.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: The current Washington DC housing market has several metrics in your favor — such as the 20.6% of homes with price drops and the increasing inventory. You can go big on your negotiations and request seller concessions. You can also demand any home repairs before the closing. However, high mortgage rates could make things tough for you.
- If You're a Seller: With the 98% sale-to-list price ratio, you can make some negotiations. However, the DC housing market is not very competitive, as even the hot homes take over 30 days to go under contract. Wait till summer, and you may experience higher demand and more bidding wars for your home. As of now, make sure you price your home reasonably, and in line with comparable properties in your neighborhood.
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Buyer: Supply exceeds demand, and homes stay listed on the market for longer, pushing sellers to offer concessions.
Is It a Buyer's or Seller's Market in Washington DC?
As of January 2025, home buyers in Washington DC are at an advantage due to the decreasing median home sale price, low competition and extended median days on market. However, homes are still relatively expensive amid growing mortgage rates. If you’re buying a home in DC now, you’ve chosen a good time. As there’s less competition, you have the luxury of considering your options before you make an offer. Research comparable properties and negotiate with the seller to lower the price, or ask for concessions like repairs and additional contingencies.
These trends vary significantly across the real estate market in Washington DC. So, check your local area’s trends before you decide to invest.
Washington DC Housing Market Insights
The Washington DC real estate market is less competitive compared to the nationwide market. The median home price has dropped at a rapid rate. However, the price ($552,500) is still higher than the national median of $418,284. Inventory trends indicate a growing availability of District of Columbia housing inventory, though at a slow pace.
If mortgage rates drop, it will push the demand up and prices could spike again. If you’re selling a home in DC’s housing market, make your home appealing. Even minor repairs can bring in good return on your investment.
If mortgage rates drop, it will push the demand up and prices could spike again. If you’re selling a home in DC’s housing market, make your home appealing. Even minor repairs can bring in good return on your investment.
Nationwide Migration Trends
Last year, Washington DC residents moved out to relocate to states like California and Maryland. Over 64,000 people relocated from Washington DC in 2024. This can be attributed to the high cost of living in DC, 48.7% more than the national average. There is also a conspicuous inbound trend, with DC gaining almost 57,000 new residents in 2023-24.
The new residents primarily came from Maryland and Indiana. Though the cost of housing in Washington DC is 140% higher than the national average, people are attracted to its top-tier education and thriving job market. The median household income of $101,722, higher than in most states, is also impressive.
The new residents primarily came from Maryland and Indiana. Though the cost of housing in Washington DC is 140% higher than the national average, people are attracted to its top-tier education and thriving job market. The median household income of $101,722, higher than in most states, is also impressive.
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Frequently Asked Questions
How has the average home price in DC changed over the past year?
Home sale prices in Washington DC have dipped and fallen over the past years, on the basis of the demand. In January 2025, prices dropped by 9.8%, although it’s expected to rise again in summer. You can check your home’s fair market value with a free home value estimator to know where you stand.
Is it expensive to live in Washington DC?
The average cost of living in Washington DC is 48.7% higher than the national average. Additionally, Washington DC’s housing market is densely populated due to its strong economy and job opportunities. The average housing cost is also 140% higher than the national average. Real estate prices have surged due to the district’s political and cultural importance. Despite its high cost of living, a large population of high-income buyers regularly flock here.
What’s the average home price in DC?
Home prices in DC depend on the house type, size, and local market conditions. It typically ranges from $410K for condos to $900K for single-family homes. If you plan to buy, you can find cheap homes for sale in Washington DC within your budget.
When will the housing market crash in Washington DC?
Washington DC housing market predictions for 2025 report that the market is very unlikely to thaw. In fact, it’s expected to yield benefits for both sellers and buyers. However, the high prices and mortgage rates may make it hard for buyers to find affordable homes in Washington DC.
Is this a good time to buy Washington DC houses?
Presently, home prices are dropping but still on the higher side. However, the time spent on the market is longer, which favors DC home buyers. Check real estate trends for prices and inventory in your area before you make a decision. When mortgage rates are stable and there is plenty of housing inventory, it would be the best time to buy a house in Washington DC.
What are the cheapest places to live in Washington DC?
Though property prices are rising, the average home value in the top 10 cheapest cities is still around $500K. Foggy Bottom and Dupont Circle are among the cheapest places in DC. Median house prices in these neighborhoods are nearly $520K and their cost of living is cheaper than DC’s average. You can compare costs of living and housing costs to narrow down the cheapest places to live in Washington DC.
How can I list my home for sale in Washington DC?
You can list your home for sale with a Flat Fee MLS Washington DC listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the best place to live in Washington DC?
Georgetown and Petworth are among the best places to live in DC. These cities top the list based on factors like community well-being score, median household income, and safety index. If you plan to invest in Washington DC real estate, make sure you research the best places to live in Washington DC.
What is the average mortgage rate for buyers in Washington DC?
The average mortgage rate for buyers in the WA housing market fluctuates between 6.5% and 7.25%. However, it depends on the market and your credit score. Always check current rates with lenders before you apply for a mortgage.
What’s the average cost of living in Washington DC?
The cost of living in the District of Columbia is 48.7% higher than the national average. However, it depends on the specific area. You can use our free cost of living calculator in Washington DC to know more.
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