While the real estate market has cooled down in recent months, the Washington D.C. metro area is seeing more activity than other parts of the Mid-Atlantic region. The reduction of remote work, particularly among federal government employees, may be a key factor as people move closer to the office.
Northern Virginia, in particular, seems to be benefiting the most, according to Bright MLS data. For the week of May 11, Bright notes [page accessed May 19, 2025], “in Arlington County, new pending sales were up 34.5% and showing activity was up 34.4% compared to a year ago. New pending sales rose 47.2% in Alexandria City and were up 26.3% year-over-year in Fairfax County.” Listing prices and sale prices are also still above last year.
Meanwhile, more sellers are listing their homes and inventory is increasing, yet prices continue to rise. Despite suggestions to the contrary, Bright MLS concludes, “there is no evidence that home prices in the region are going to drop. There is still strong demand from buyers which will keep prices rising or steady.”
However, other segments of the market are certainly slower. According to Bright, close-in Maryland counties and DC itself are not experiencing as much activity as Northern Virginia, and the market for luxury homes region wide is down.
Bright MLS’s recently released 2025 Q1: Mid-Atlantic Luxury Housing Report, reveals that the luxury market is suffering this year because of market volatility. “Luxury Homes” are defined as homes priced in the top 5 percent of their market. In our region, that includes homes priced $1.705 million or higher. Regarding all luxury homes in the Mid-Atlantic Region Bright reports:
Luxury buyers are less active than they were a year ago. In the first quarter, there were 2,746 new pending contracts on luxury homes across the Bright MLS service area. Pending sales activity was down by 9.6% compared to the same period in 2024, and the slowdown in the luxury market was steeper than in the broader housing market. Across homes at all price points, new pending sales fell by just 2.8% year-over-year in the first quarter.
Regarding our local Washington, D.C. region, Bright reports the number of luxury sales in the first quarter was unchanged from a year earlier, but new pending luxury sales were down 10.8%.
Where we go from here all depends on what happens economically in the months ahead. More stability in the economy and even modest reductions of interest rates could heat things up quickly throughout our region and beyond.
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