Understanding the Current DMV Housing Market: Facts vs. Rumors

I’ve recently received a number of emails, phone calls, and even Instagram messages about the housing market in the DMV region, with many expressing concerns that it’s beginning to crash. I wanted to take a moment to clear up some of the misinformation circulating and provide you with accurate, factual information to help you form your own opinion.

1. Median Home Prices: According to Redfin, the median home price in Washington, D.C., was $699,000 in November 2024. However, data from the Multiple Listing Service (MLS) — where agents list publicly available properties — shows the median price at $600,000 for the same period.

2. New Listings Surge: There has been talk about a surge of nearly 8,000 new listings in the DMV this winter. In reality, the actual number of new listings that came to market in January this year was 3,726.

3. Market Trends: Historically, Washington, D.C. has been a place of stability, even when other markets experience chaos. However, the current situation reflects a shift, with sellers who no longer need to be in the area choosing to leave — a trend that often happens with a change in political administration.

While this is creating some uncertainty, it’s understandable that people are concerned. The media often uses clickbait headlines to drive attention, and social media tends to spread information faster than we can process it. But on the ground, what I’m seeing is that buyers remain cautious due to higher interest rates and job uncertainty. As a result, they’re taking extra care before committing to a purchase. 

1. Seasonal Market Shifts: February is typically when sellers begin preparing their homes for the spring market, which usually kicks off in late March or early April and peaks in May. Since the pandemic, the spring market has started earlier, as sellers try to get ahead of the rush, which could explain the uptick in listings. Additionally, it's common to see a dip in home prices during the winter months and an increase in inventory towards the end of Q1.

2. Local Market Variances: The DMV housing market is incredibly localized. For example, the conditions in neighborhoods like 16th St. Heights may be very different from those in Logan Circle, Vienna, or Silver Spring. We still have less than 2 months of supply month over month, meaning the inventory is low and the slightest uptick in buyers can cause a multiple offer situation which in turn causes home prices to increase.

In short, it’s important to rely on trusted data and avoid reacting to headlines and social media rumors. If you're ever in doubt, don’t hesitate to reach out to your trusted realtor (that's me!) for up-to-date, factual information.

For your reference, I’ve attached a few reports reflecting median home sale prices, new listings and inventory in the DMV from January 2024 to January 2025. You'll see that the beginning of this year looks very much like the beginning of last year.