Fall 2025 DC Real Estate Market Report

The D.C. real estate market has been in a period of transition this year. Over the first 10 months of 2025, between January and November 1, 2025, 5,345 contracts (single-family, condos, and rowhomes) were signed, a negligible increase from the 5,317 contracts signed during the same period of 2024. The change in the weighted median sales price was also negligible, moving from $734,250 in 2024 to $735,374 in 2025.

The significant change, however, has been in the median days on market (DOM), which increased from 16.84 days to 23.96 days, an increase of over 42% that signals less urgency from buyers. There was also a shift in the median sold-to-list price ratio: after holding at 100% last year, it dipped to 99.43% this year. This shows that buyers and their agents have been successful in negotiating lower sales prices.

The total value of the D.C. market is holding, despite what headlines say. While listings are staying on the market longer and buyers are negotiating contracts below the list price, the median sales price is not falling. Sellers appear to be choosing to withdraw their properties if they become stale rather than selling them at a loss.

The key advantages for a home buyer in 2025 are that they are generally avoiding bidding wars (there are exceptions) and you can write contingencies into your offer. Furthermore, lower interest rates mean buyers are saving money on a purchase that would have been much more expensive last year.

This reduction in competition and favorable tilt in negotiation power towards the buyer is creating significant opportunity for residential and multifamily investors who, in previous years, had largely moved away from the D.C. market due to high interest rates, TOPA restrictions, and permitting hurdles. We are starting to see more activity in this sector. If you are interested in building your portfolio, don't hesitate to reach out.

Diego