DC area home sales closed out 2024 with impressive momentum.

According to a new report from Bright MLS, nearly 3,900 homes were sold in December—a 26% increase compared to the same month in 2023.

“Buyer activity surged at the end of 2024, even though mortgage rates remained in the high 6% range,” the report stated. “However, rates are approximately three-quarters of a percentage point lower than they were a year ago. Buyers have adjusted their expectations and are acclimating to the new normal for interest rates.”

Widespread Growth Across the Region

All jurisdictions, except Falls Church, reported increases in home sales. Some of the largest gains were seen in Fairfax (+35%), Loudoun (+28%), and Montgomery (+28%), while DC recorded a 20% rise in sales.

This surge occurred despite median home prices in the region rising 6%, bringing the median price to just under $600,000.

Looking Ahead: Challenges for 2025

While the increase in sales is encouraging, challenges remain.

“As we move into 2025, there is significant pent-up demand in the Washington D.C. metro area housing market,” the report noted. “However, inventory is expected to stay low, and affordability remains a significant hurdle for many buyers. Additionally, uncertainty around Federal government employment in the region could impact the market in the coming months.”

The strong finish to 2024 has set the stage for a dynamic housing market in 2025, but navigating these challenges will be key to sustaining the momentum.

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