Greater Washington, D.C. Housing Market Update: June 2025 Trends & Data

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The Greater D.C. housing market continues its complex summer shift, with fresh listings rising, pending contracts slipping, and federal policy turbulence adding pressure on retirees and older sellers. Here's a breakdown of what buyers, sellers, and investors need to know as we enter the second half of 2025.

📈 New Listings Are Up, But So Is Caution

According to Bright MLS, new listings in the Greater Washington D.C. region totaled 1,862 the week ending June 29, 2025 — a 7.6% increase from the same week last year. Despite this year-over-year jump, listings dipped 3.1% from the prior week, signaling a typical summer slowdown. For broader context, the entire Bright MLS area (which includes parts of six states plus D.C.) saw 6,166 new listings — up 6.0% from last year.

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🧭 Buyers Are Hesitating Across the Region

Pending contracts fell nearly across the board. In the Greater D.C. region:

• New pending contracts: 1,826

• Year-over-year: down 3.0%

• Week-over-week: down 4.8%

Why the slowdown? Experts point to high interest rates, elevated prices, and broader economic uncertainty. While these figures reflect the usual early summer lull, it’s clear that buyers are taking a more cautious approach in this market cycle.

🔥 City & County Highlights

Here’s a snapshot of local markets across Northern Virginia and nearby Maryland counties for the week ending June 29, 2025:

• Arlington County, VA: Pending contracts surged 35.8% YoY with 48.2% more showings — showing demand remains strong despite high prices ($845,000 median).

• Fairfax City, VA: Showings exploded 279.5% YoY, but only 8 new pending contracts. High volatility here.

• Prince William County, VA: Listings dropped 11.3% YoY, contracts fell 18.3%, but showings rose 6.2%, indicating buyer curiosity remains.

• Stafford County, VA: Listings up 39.6%, but contracts down 5.5% and showings down 24.1% — a potential oversupply risk.

• Montgomery County, MD: Strong stability, with listings up 16.5%, pending contracts flat, and showings up 15.5%.

💼 Government Layoffs Are Reshaping the Market

A recent Bright MLS survey revealed that nearly 40% of D.C.-area agents worked with a buyer or seller affected by federal workforce cuts. Many sellers were retirees impacted by buyouts or uncertainty in government employment.

This trend is most visible in older seller segments, where downsizing or cashing out has become a necessity — especially in historically federal-heavy counties like Prince George’s, Fairfax, and Montgomery.

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Source: Bright MLS Housing Market Update – June 30, 2025

Frequently Asked Questions (June 2025 Edition)

1. Why are listings up in June 2025?
We're seeing more sellers enter the market in response to stabilized home prices, seasonal momentum, and government workforce changes.

2. Are home prices dropping in the D.C. region?
Not significantly. Median prices remain high, though some micro-markets (like Falls Church City) are seeing softening.

3. What’s happening in Northern Virginia?
Arlington and Fairfax remain strong with solid showing activity. Prince William and Stafford are seeing softer buyer demand.

4. Should I sell my home now or wait until fall?
Summer is still a strong listing window. If mortgage rates tick up, buyer affordability will shrink. Now may be your best shot.

5. Why are pending contracts down despite more listings?
Buyers are cautious due to high interest rates and concerns about the economy — especially in federal employment markets.

6. What does the federal government have to do with housing?
In D.C. and surrounding areas, job cuts or buyouts in federal agencies impact both buyer and seller behavior — especially among retirees.

7. Is inventory increasing or decreasing?
Inventory is increasing in most counties, but not necessarily enough to satisfy demand — meaning it’s still competitive in many price ranges.

8. How’s the Maryland side of the region performing?
Montgomery and Frederick Counties are seeing healthy activity. Prince George’s is softening slightly. Charles County has mixed signals.

9. What’s the median list price in Greater D.C. now?
$599,900 — up 9.1% year-over-year, but down slightly from last week.

10. Where are buyers showing the most interest?
Showing activity is strongest in Arlington, Alexandria, and Montgomery County. These areas offer job access and urban-suburban convenience.

📊 Final Takeaway

The D.C. housing market is entering a new seasonal phase — marked by mixed signals, federal policy headwinds, and a serious affordability crunch. But opportunity still exists for prepared buyers and motivated sellers.

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