Washington, DC Housing Market Report

The Washington, DC housing market is currently undergoing a significant transition toward a more balanced environment, increasingly favoring buyers compared to the frantic pace of previous years. As of December 2025, the median home value stands at $572,028, reflecting a 3.21% decrease year-over-year. This cooling is further evidenced by a substantial 30.05% surge in active inventory, with 12,538 properties currently available. Homes are also lingering on the market longer, with the average time to sell reaching 56 days—a 16-day increase from the same period last year.

Price trends over the last six months indicate a period of stabilization following a mid-year dip. After hitting a low of $569,281 in September, values have seen a modest but consistent month-over-month recovery through the fourth quarter. Despite the annual decline, the sale-to-list ratio remains at a perfect 1.0, suggesting that while buyers have more options and leverage to negotiate on time and contingencies, sellers are still successfully pricing their homes in alignment with current market expectations.

Looking ahead, the Washington-Arlington-Alexandria metro area remains a resilient hub, though the rental market is mirroring the sales slowdown with a slight 0.72% annual decrease in median rent to $2,402. For prospective buyers, the current climate offers the best opportunity in years to explore a wider selection of inventory without the immediate pressure of bidding wars. Sellers, conversely, must be prepared for longer holding times and should prioritize competitive pricing and property condition to stand out in a crowded field.