Washington, D.C. Metro Housing Market – October 2025

Square Feet Appraisals Monthly Report

Data Source: Bright MLS Weekly Market Report
Report Prepared by Square Feet Appraisals in Collaboration with Delaware Beaches Online

October 2025 was a “split-screen” month for the Washington, D.C. metro housing market.
Prices are still edging up, mortgage rates dipped to a 13-month low, but buyers and sellers in some pockets—especially the District—are clearly tapping the brakes.

Below is a simple, plain-English breakdown you can share with clients or use as context for appraisals, pricing, and negotiations.

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1. Big Picture: Washington, D.C. Metro at a Glance

Regionwide, the market is not crashing—it’s normalizing.

• Closed sales were basically flat compared to last year.

• Prices are still rising.

• Homes are taking longer to sell.

• Inventory is building faster here than in many other Mid-Atlantic markets.

Key Metrics – All Property Types (October 2025 vs. October 2024)

A quick translation: more homes on the market, prices higher than last year, and buyers taking more time to decide.

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2. How Different Property Types Are Behaving

Not all parts of the market are moving the same way. Single-family homes are holding up better than townhomes and condos.

Side-by-Side View – By Property Type (October 2025 vs. October 2024)

Takeaways:

• Single-family homes

  • Strongest demand.

  • Prices are still climbing solidly (+5.7%).

  • Inventory has increased, but still more competitive than condos.

• Townhomes

  • Slight dip in closed and pending sales.

  • Prices are basically flat year-over-year.

  • More inventory = more options and more negotiation room.

• Condos

  • Sales are down, days on market are longest, and months of supply are highest.

  • This is the softest segment—important for pricing and appraisal risk.

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3. Local Market Snapshots: Where It’s Cooling vs. Holding Up

Some areas are clearly feeling more stress—especially the District itself, where sales and new contracts are down sharply.

Selected Local Markets – Closed Sales, Price & Days on Market

What stands out:

• Washington, DC (the District)

  • Fewer closed sales and fewer new contracts.

  • Days on market jumped to nearly a month in many cases.

  • Inventory is up and months of supply are much higher than the regional average.

• Suburban Virginia (Fairfax, Loudoun, Arlington)

  • Still relatively active with positive sales growth.

  • Prices are up modestly—or sharply in Arlington.

  • Days on market are still low enough to feel competitive.

• Prince George’s County and some Maryland submarkets

  • Softening demand, longer marketing times.

  • Still seeing modest price growth, but buyers have more leverage.

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4. What This Means If You’re Buying

For buyers in the D.C. Metro:

• You finally have more choices.
  Active listings are up more than 30% year-over-year in many parts of the region.

• Leverage depends on where and what you’re buying.

  • Single-family homes in popular suburbs are still competitive.

  • Condos and some townhomes—especially in DC and high-inventory areas—offer more room to negotiate.

• Longer days on market = signals, not steals.
  An extra week or two on the market doesn’t automatically mean a “bad” listing; it could be pricing, condition, or just cautious buyers.

• Rates help, but don’t erase the math.
  Mortgage rates at a 13-month low are helpful, but higher home prices still mean payments that need careful budgeting.

If you’re planning to buy, it’s smart to pair your agent’s strategy with a realistic value opinion—especially if you’re stretching into multiple-offer territory or dealing with a complex property type.

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5. What This Means If You’re Selling

For sellers, October’s data is a reminder that pricing discipline matters again.

• You can’t rely on 2021-style “list Friday, sold Monday” behavior.
  Median days on market have jumped in every segment and nearly every submarket.

• Overpricing is riskier with more inventory on the market.
  Buyers now have alternatives. If your list price is not in line with recent, truly comparable sales, your home will sit.

• Segment and location matter.

  • Detached homes in established suburbs can still command strong prices if they’re well-presented.

  • Condos and townhomes may require sharper pricing, incentives, or more prep to stand out.

• Appraisals are back in the spotlight.
  With prices rising in some areas but softening demand in others, lenders and buyers are watching appraised values more closely.

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6. How Square Feet Appraisals Uses This Data

At Square Feet Appraisals, we use reports like this October 2025 Bright MLS snapshot as background context, not a substitute for property-specific analysis.

For each assignment—whether it’s:

• Pre-listing valuation

• Pre-purchase appraisal

• Refinance

• Divorce, estate, or date-of-death valuation

…we drill down into your micro-market: neighborhood, school district, property type, and price band. The trends above help us:

• Understand where demand is cooling or heating.

• Adjust for the difference between October 2024 and October 2025 pricing.

• Identify risk factors (for example, condo oversupply or longer marketing times in certain submarkets).

If you need to make a real decision—sell, buy, hold, transfer, or settle an estate—a formal appraisal gives you a documented, defensible value in a market that is clearly shifting beneath the headlines.