A MESSAGE FROM THE BROKER-
The Q3 results for the Greater Washington, D.C. real estate market bring to mind the phrase “wash, rinse, repeat.” Inventory levels continued to rise, while unit sales and average home prices remained highly market specific. After a lackluster first quarter, the region experienced a strong rebound in Q2, followed by another overall positive performance in Q3, reaffirming the market’s underlying resilience. However, despite these encouraging results, the data also highlights a growing degree of unpredictability, as performance varied notably across the sub markets. These divergent outcomes across Northern Virginia, Washington, D.C., and the close-in Maryland suburbs underscore the distinct market dynamics at play. Fluctuating interest rates, rising home prices, and a continued sense of public caution may present headwinds as we move into the fourth quarter.
Once again, Northern Virginia outperformed the broader Washington, D.C. metro real estate market. Unit sales rose 1.9%, while average home prices increased 3.7%. Most cities and counties experienced solid growth, with the exceptions of Fairfax County (down 1.75%), Prince William County (down 5.9%), and Woodbridge (down 8.2%) in unit sales. In contrast, Loudoun County continued to perform strongly, with home prices up 3.5% and unit sales up 6.9%. The county’s largest city, Ashburn, mirrored this strength, underscoring how growth in the outlying areas continues to account for a larger share of overall regional home sales. Home prices across nearly all jurisdictions remained within the projected 3–5% growth range, with few exceptions. However, days on market (DOM) continued to climb, with many areas seeing double-digit increases, signaling a gradual shift toward a more balanced market.
In our Maryland markets, results were mixed across key counties. Montgomery and Prince George’s Counties continue to serve as bellwethers for their respective regions. In Montgomery County, the average sale price declined by 1.4% in Q3, yet unit sales posted a strong 10% increase, reflecting renewed buyer activity despite market conditions. Conversely, Prince George’s County experienced minimal price growth of just .06%, while unit sales fell sharply by 13.8%, marking a notable under-performance relative to its neighboring county. The close-in suburbs of both counties mirrored these trends, with home prices and unit sales showing similar fluctuations and inconsistencies. Meanwhile, Days on Market (DOM) continued to climb, with most areas recording double-digit increases, again, suggesting a gradual normalization of market conditions.
The Washington, D.C. market mirrored much of what was observed in Maryland, with home prices declining by 1.4%, unit sales posting a strong 10% increase, and days on market (DOM) rising by 15% for the quarter. Most neighborhoods saw moderate price declines but experienced notable gains in sales activity. The Southwest Waterfront stood out as the clear outperformer in Q3, with home prices up 6.3%, unit sales surging 45.7%, with DOM dropping sharply by 22%. Conversely, the condo market (primarily concentrated in the 20026 ZIP code) faced significant challenges. Average home prices fell 14.5%, unit sales declined 45.2%, and DOM increased by 10.3%, reflecting the broader softness in that segment.
With Q3 now in the rear view mirror, certain recent developments in our market could have a negative impact on Q4. However, as October draws to a close, the numbers are proving very encouraging. Hopefully, this is a sign of how the remainder of Q4—and the year overall—will unfold. That said, familiar challenges remain: fluctuating interest rates, high home prices, and ongoing affordability concerns, all of which could be further complicated by the current government shutdown. Still, several positive factors continue to support the market. The strength and intensity of both private and public infrastructure projects, low unemployment rates (D.C. being the exception), and the steady influx of jobs in technology, finance, healthcare, professional services, and skilled trades should help offset any headwinds. All told, Q4 is shaping up to be a favorable period for the greater Washington, D.C. real estate market. It has been a whirlwind year of economic shifts, yet the region’s housing sector continues to stand as a bulwark against broader uncertainties.
KW
METRO CENTER
Single family, townhouses & condominiums Q3 2025
ALEXANDRIA ARLINGTON ASHBURN
FAIRFAX CO FAIRFAX STATION LORTON
McLEAN SPRINGFIELD VIENNA
COUNTY 1,604 units sold Q3 2025
1,613units soldQ32024 1%→ single family homes
MARKET BALANCE
The market balance is determined by the average months of supply, (all home types SEPT 2025)
$1.9B TOTAL SALES (SINGLE FAMILY HOMES) Q3 2025
Q3 2025
WASHINGTON, D.C.
Single family, townhouses & condominiums
24
GEORGETOWN KALORAMA LOGAN CIRCLE
MARKET BALANCE
The market balance is determined by the average months of supply (all home types), SEPT 2025.
$438M
SALES (CONDO & CO-OP) Q3 2025
BETHESDA CHEVY CHASE POTOMAC
ROCKVILLE SILVER SPRING
CHARLES CO FREDERICK CO HOWARD CO
COUNTY 1,352 units sold Q3 2024
1,392units soldQ32025 3% → single family homes
MARKET BALANCE
The market balance is determined by the average months of supply (all home types), SEPT 2025.
$1.4B TOTAL SALES (SINGLE FAMILY HOMES) Q3 2025
1701 Duke Street, Suite 100 Alexandria, VA 22314
703-535-3610