What a difference a quarter makes! Concerns about what the Q1 real estate market results for the greater Washington, D.C. real estate market might portend for the whole of 2025 have all but been erased based on Q2 results. Average home sale prices continued their upward trend with most counties and cities experiencing single digit increases (some significant) but unit sales stole the show with explosive performances across all jurisdictions with almost every city and county experiencing impressive double-digit growth. These two metrics combined with decreased days on market (DOM) signals a very robust and accelerating market as we head into Q3 and beyond. Northern Virginia, like other jurisdictions that we service, delivered a strong performance in Q2. Average home sale prices increased +2.4% over Q1 with unit sales coming in at a remarkable +72% over Q1 and days on market (DOM) down -30%. Bottom line - More homes selling for higher prices in less time. Across the region, cities and counties experienced similar results erasing most (but not all) worries sellers and buyers exhibited in Q1.
Turning to the Washington, D.C. & Maryland markets, we see a similar type of performance that Northern Virginia experienced. Washington, D.C. saw Q2 home sale prices rise 12.8% over Q1. Unit sales, which have been lagging in recent months, rebounded with a 19.6% increase in Q2. In the Washington, D.C. market, there was a significant decline in days on market (DOM) registering a 24% decrease from Q1.
Montgomery County led the way in Maryland with home sale prices up +11.3% over Q1 and unit sales jumping +62.9%. Cities including Bethesda, Chevy Chase, Potomac, Rockville and Silver Spring all experienced similar growth. Days on market followed the downward trend seen in the Northern Virginia and Washington, D.C. markets. Prince George’s County posted healthy results as well with home sale prices increasing 3.3% and unit sales rising 27%.
Moving a bit south, the Greater Richmond area enjoyed similar results in Q2. While inventory levels continued to grow at a 13.7% clip, unit sales were up 4.4% (a 6.8% swing from Q1). Average home sale prices rose 9% for the quarter. Affordability continues to be one of the driving forces behind these positive Q2 numbers.
As we move into Q3, it is anyone’s guess what the next two quarters may hold for our real estate market. The concerns alluded to in Q1 - tariffs, employment, interest rates and consumer confidence have given way to a more confident feel about these concerns in the market. Additionally, the sheer scale of large transportation improvement projects, residential & mixed-use projects, the stadium redevelopment, the rise of data centers and countless other projects continue to show a vibrant and growing community. It seems the explosive inventory levels we’ve seen over the past 6 months have given buyers even more choices leading to the unit “boom” in Q2. It looks like we may be heading back to the robust markets we’ve been accustomed to. For all the changes and uncertainty consumers felt in Q1, they made their voices heard in Q2 - a very good sign for a strong Q3.
Q2 2025
NORTHERN VIRGINIA
Single family, townhouses & condominiums
ALEXANDRIA ARLINGTON ASHBURN
FAIRFAX CO FAIRFAX STATION LORTON
McLEAN SPRINGFIELD VIENNA
2,025units sold Q22025 3% → single family homes
1,961 units sold Q2 2024
MARKET BALANCE
The market balance is determined by the average months of supply, (all home types) JUNE 2025
$2.4B TOTAL SALES (SINGLE FAMILY HOMES) Q2 2025
Q2 2025
WASHINGTON, D.C.
Single family, townhouses & condominiums
CAPITOL HILL
24
GEORGETOWN KALORAMA
LOGAN CIRCLE
MARKET BALANCE
The market balance is determined by the average months of supply (all home types), JUNE 2025.
Q2 2025
MARYLAND
Single family, townhouses & condominiums*
*Data above represents Montgomery County only.
BETHESDA CHEVY CHASE POTOMAC
ROCKVILLE SILVER SPRING
CHARLES CO FREDERICK CO HOWARD CO
MARKET BALANCE
The market balance is determined by the average months of supply (all home types), JUNE 2025.
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