Fall 2025 Bethesda-Chevy Chase Real Estate Market Report

One of the most common questions I’ve been getting lately is: “Are we seeing home values soften in Bethesda–Chevy Chase?” The short answer: yes — slightly. But as with most things in real estate, the full picture is more nuanced.

After 15 straight years of value appreciation — a remarkable run by any standard — we are now experiencing a recalibration fueled by rising inventory and more thoughtful, discerning buyers. And while the shift may feel sudden, it has been building for the better part of a year. Rapid changes in financial markets, uncertainty in the broader economy, and a softening labor landscape have collectively influenced buyer psychology, slowing decision-making and encouraging a more deliberate, value-focused approach.

It’s also important to distinguish between sectors. The DC condo market, for example, is responding very differently than the detached-home market in Bethesda and Chevy Chase. In B-CC, buyer activity remains relatively strong; the dynamic has simply shifted from urgency to selectivity — and that change is now showing up in the data.

The Broader Picture: First 10 Months of 2024 vs. 2025
In Bethesda (detached homes), the first 10 months of 2025 saw 898 new listings compared with 743 in the same period last year. 

Contracts rose from 565 to 607 — a healthy increase, but not enough to match the surge in supply. That’s more than a 20% jump in inventory and only about a 7.5% increase in homes going under contract.

Chevy Chase shows a similar pattern: 161 new listings this year vs. 131 last year, while contracts rose from 162 to 191 — about an 18% increase.

In both markets, supply has outpaced demand. That widening gap has created new negotiation dynamics, and for the first time in 15 years, we are seeing a modest decline in median prices — a natural reaction to increased choice and more selective buyers.

Zooming In: September–October Snapshot
Fall brought renewed buyer activity as many purchasers recognized an opportunity to secure homes on more favorable terms. Sellers found themselves navigating a market that demanded flexibility and strategic pricing; price reductions have become more common as the average “days on Market” for a detached home in Bethesda doubled compared with the same period in 2024. Buyers who recognized the opportunity responded accordingly by negotiating more boldly and firmly. 

Interpreting the Shift
Supply has meaningfully expanded — up 26% in Bethesda and 37% in Chevy Chase — giving buyers more choice and leverage than we’ve seen in years. Yet buyers haven’t disappeared; contracts are up year-over-year in both markets. What has changed is the pace and psychology. Buyers are evaluating carefully, negotiating strategically, and no longer reacting under pressure.

As a result, pricing has normalized. Homes are no longer automatically selling above list, and median home values have adjusted down roughly 3–4% compared with the same period in 2024. Considering the extraordinary run the market has had since 2010, this represents a measured, healthy correction rather than a retreat.

In short, this is a balanced market, and balance creates opportunity on both sides of the table.

What It Means for Sellers
This remains a strong and fundamentally sound market for sellers. However, pricing precision and presentation quality matter more than ever. Homes that launch correctly — thoughtfully priced, beautifully presented, and aligned with today’s buyer expectations — are still selling well, often within the first few days or weeks. Sellers who adapt to this new environment continue to achieve excellent outcomes resulting in an asking price contract, slightly below or even slightly above.

What It Means for Buyers
For motivated buyers, this is the most favorable environment we’ve seen locally in years. Inventory has expanded, competition has cooled, and interest rates have eased — giving buyers the chance to negotiate terms, secure value, and make informed decisions without urgency dictating the process. Those who have been waiting for the market to “come to them” are finding genuine opportunity right now.

Looking Ahead
This moment does not signal a weakening market — rather, a normalization. Bethesda–Chevy Chase remains one of the most desirable, resilient, and supply-constrained markets in the region. With greater economic clarity, a firmer job landscape, and sustained improvements in financial markets, we could easily see momentum shift back toward sellers as soon as spring 2026.

But as we move through the holiday season and into the early months of the new year, the current environment favors preparedness, strategy, and informed decision-making.

Sellers who price intelligently and present well continue to thrive. Buyers have meaningful leverage for the first time in over a decade.

As always, thoughtful strategy and experienced guidance are what separate average outcomes from exceptional ones.

If you’re considering a move, weighing your timing, or simply want a confidential conversation about your home’s value or the current market dynamics, I’m here and happy to help.

Avi