The Washington D.C. area housing market has shown signs of slowing down, largely due to ongoing economic uncertainty. New pending sales in the region decreased by 9.5% year-over-year, with only 3,485 contracts in February 2025. This marks the slowest pace of February contract activity since 2008, reflecting the broader challenges faced by the market. The only area seeing a notable uptick was Loudoun County, VA, which reported a 17.3% increase in new pending sales compared to the previous year.
In addition to the decline in pending sales, the number of new listings also saw a reduction, with a 2.6% drop in February compared to the same time last year. However, two major markets in the region, Loudoun County (+26.8%) and Montgomery County, MD (+2.3%), were the exceptions, experiencing higher levels of new listing activity.
By the end of February, there were 6,857 homes available for sale in the D.C. area, a nearly 30% increase from the same time in 2024. This expansion in inventory is seen across all housing types, though it’s worth noting that condo listings have fully recovered to their pre-pandemic levels, while other property types continue to experience varying levels of inventory growth.
Despite the overall slowdown, the median sold price for homes in the Washington D.C. area saw a 6.6% increase, reaching $597,000 in February 2025. Over the past five years, home prices in the region have surged by more than 40%, signaling sustained price growth despite the current market challenges. This continued appreciation in prices reflects the long-term demand for homes in the D.C. area, even amid a period of reduced activity.
