Washington D.C. Housing Market Holds Steady Amid Policy Uncertainty: Insights from Homes.com Report

The Washington D.C. metropolitan area’s housing market has weathered the first 100 days of President Trump’s second term with surprising resilience, according to a new report from Homes.com. Despite economic volatility and shifting federal policies, key metrics—from median home prices to luxury market activity—paint a cautiously optimistic picture for investors. Here’s what the data reveals.

Market Dynamics: A Mixed Bag of Stability and Growth

The Homes.com analysis highlights a housing market in transition. While the average days on market for DMV-area homes dropped to 90 days in April 2025 (down from 100 days in 2024), Washington D.C. itself saw no change—sticking at 95 days. This slight divergence suggests a stronger seller’s market in suburban areas versus the city’s more cautious buyers.

The median sold price surged to $595,000 in 2025, up from $575,000 in 2024—a 3.5% year-over-year increase. This growth underscores sustained demand, even as active listings rose modestly. Perhaps most striking is the luxury segment: over 400 properties priced at $3 million or more are currently listed or under contract in the DMV region. Cash purchases are increasingly common here, as buyers sidestep the instability of fluctuating mortgage rates.

Mortgage Rates: A Double-Edged Sword

The housing market’s health hinges on mortgage affordability, and recent trends are anything but stable. As of April 10, the average 30-year fixed-rate mortgage dipped to 6.62%, the lowest since December 2024. But rates rebounded to 6.83% shortly after, creating what one agent called “whiplash” for buyers.

This volatility is a double-edged sword. On one hand, dips below 7% could spur buyer confidence; on the other, prolonged uncertainty may deter hesitant buyers. For investors, tracking this metric is critical.

CoStar Group, Homes.com’s parent company, has seen its stock rise alongside its market insights. Investors in CSTO may benefit from its unique data on regional housing trends, including the DMV’s luxury boom.

Policy Impact: Navigating Uncertainty

Trump’s second-term policies—particularly tariff reforms and federal budget cuts—are still unfolding, but their effects on the housing market are already visible. The report notes that buyers and sellers are reacting unevenly to these changes. For instance, areas with high federal employment may face headwinds if budget cuts reduce salaries or jobs. Meanwhile, luxury buyers, often insulated from broader economic trends, continue to drive high-end demand.

Melina Duggal of CoStar Group emphasizes that the DMV market’s trajectory reflects a balance between national trends and localized political responses. “This is a story of resilience,” she says, “but it’s also a reminder that policy can shift momentum in a heartbeat.”

Conclusion: A Market to Watch, But Proceed with Caution

The Washington D.C. housing market offers investors two clear opportunities:
1. Luxury real estate: With over 400 listings at $3 million+, high-end properties are thriving, especially among cash buyers. This segment could outperform if mortgage rates stabilize.
2. CoStar Group (CSTO): As the owner of Homes.com, CoStar benefits from its data-driven insights. Its stock, which tracks regional trends, may rise as the DMV market’s story unfolds.

However, risks remain. The median price increase of 3.5% is modest compared to pre-pandemic growth, and mortgage volatility could dampen broader demand. Investors should monitor CSTO’s performance and 30-year mortgage rates closely.

In short, the DMV market is holding its ground, but its long-term trajectory hinges on how federal policies and interest rates evolve. For now, the data suggests a cautiously optimistic environment—but one where patience and vigilance are key.