Should You Buy, Sell, or Invest in the DMV Right Now?

By Troy Patterson

Troy holds designations as a Luxury Home Marketing Specialist, Graduate Realtor Institute, Certified Residential Specialist, and Military Relocation Professional. He has certifications as a financing specialist in Virginia and a pre-licensing instructor in the District of Columbia.

There’s been a noticeable shift in the District of Columbia, Maryland, and Virginia (DMV) housing market as we head into the second half of 2025, and it’s something both buyers and sellers should take seriously. Rates are starting to dip, condos are heating back up, and sellers aren’t holding the power they once did. Whether you’re making a move or just staying informed, here’s what’s happening in our local market right now:

Interest rates are slowly dropping. We’re off the peak from last year’s 20-year high. Economists are now predicting rates could settle between 5% and 6% by the end of 2025. That’s still higher than some buyers hoped, but it’s better than where we were. If you’re waiting for the “perfect” rate, you may already be late. Buying now and refinancing later is a smarter strategy than trying to time a market that doesn’t wait.

Inventory remains tight, and quality homes are selling quickly. Most homeowners with 3% mortgage rates aren’t in a hurry to sell, which keeps inventory low. When a well-maintained home hits the market in neighborhoods like Arlington, Bethesda, or central D.C., it doesn’t last long. Prices are still rising for single-family homes, with median prices now surpassing $750,000 in some areas.

Federal layoffs are starting to influence the market. New policy changes are leading to job cuts and spending pullbacks, especially in government roles. That’s bringing fresh listings to the market as some owners relocate or downsize. It’s a chance for buyers who are ready and flexible. For sellers, it means strategy is more important than ever—pricing, staging, and presentation all matter.

Condos are seeing new life in metro-accessible areas. After sitting quiet for much of 2024, condos in walkable neighborhoods like Columbia Heights, Navy Yard, and Petworth are gaining momentum. Many one-bedroom units, priced around $450,000 with amenities, are appealing to first-time buyers. These aren’t just starter homes—they’re smart moves.

What should you do? If you’re buying, get pre-approved and clear on your budget. The longer you wait, the more likely prices and competition will climb again. If you’re selling, summer and fall 2025 could be your sweet spot. And if you’re investing, D.C.’s rental demand remains steady, especially for small multifamily and low-carry condos.

Understanding what’s happening in today’s market is the first step to making a smart move. If you’re thinking about buying, selling, or investing in the DMV area and you have questions, feel free to call or text me at 202-417-8735 or email me at speragroup@ttrsir.com. I’d be happy to walk you through how these shifts could impact your timing, pricing, and next steps.