In the DMV, our market remains strong and active, with steady movement in and out of the area. While 2025 has brought its share of challenges, job layoffs, stock market volatility, political shifts, and international tensions, the region has shown remarkable resilience. Unlike more rural areas across the U.S., the DC region tends to be more insulated from broader economic swings.
It’s been a busy, unpredictable year, but through it all, Pearlman Meekin & Co. has proudly helped over 50 buyers and sellers so far. We’ve seen a wide mix of market dynamics. Some homes are still attracting multiple offers and going over asking with no contingencies, while others allow for some negotiation. In some cases, our buyers have even secured home sale contingencies and closing cost credits from sellers, proof that opportunities still exist in this market.
Despite ongoing interest rate fluctuations, the market hasn’t slowed. Buyers have largely adjusted to the “new normal” of rates above 6%, and inventory has finally returned to 2021 levels, which is great news for those looking to purchase. Home prices continue to climb, and demand remains especially high for single-family homes, particularly in Montgomery County, where days on market remain low overall.
2025 Housing Market Outlook: What to Expect This Fall
As we look ahead to the second half of the year, here’s what we’re watching:
1. Inventory is improving.
Nationally, housing inventory rose 20.8% from last year. Locally, we’ve seen a 6% increase from this time last year, giving buyers a bit more breathing room. However, we’re still shy of a fully balanced market.
2. Home prices remain strong.
Home values are expected to hold steady through Q3, with a typical seasonal dip in Q4. Nationally, the median home-sale price hit $414,000 in April 2025, a record high for the month and the 22nd straight month of year-over-year price growth. In Montgomery County, the average sales price reached $670,000 in April, up 2% year-over-year.
3. Mortgage rates may hover around 6%.
The average 30-year fixed rate is expected to stay in the 6% range, with occasional spikes. It’s unlikely we’ll dip below 6% soon, given inflation and economic momentum.
The Bottom Line
High rates, rising prices, and limited inventory continue to shape the market, but there are clear signs of renewed activity. Buyers who hit pause a few years ago are now re-entering the market with more realistic expectations. We anticipate more movement in the second half of 2025 than we saw in much of 2024.
In this kind of market, working with the right agent makes all the difference. Whether you're thinking of buying, selling, or just weighing your options, Pearlman Meekin & Co. is here to guide you every step of the way. Let’s connect.
