Local Real Estate Market Update
MAY 2025
MAY 2025 Market Update: Washington, D.C. Real Estate Trends in 20002 & 20003
As we head into the heart of the spring market, the Washington, D.C. real estate landscape—particularly in Capitol Hill’s 20002 and 20003 ZIP codes—remains active and resilient. Despite economic headwinds and gradually rising mortgage rates, buyer activity has held steady, with key indicators showing strong engagement across the city and in our local neighborhoods. Here’s a closer look at what the latest data reveals.
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Buyer Activity
The home demand index across the Washington DC region remained steady from March in the full month of April, holding at 96, suggesting continued buyer interest despite economic uncertainties. Zooming in on Washington DC proper and local neighborhood zip codes of 20002 and 20003, we see resilience in the housing market looking at monthly trends from March to April, with days on market improving or holding steady, and closed sales up (with the exception of 20003).
Source: Bright MLS
Within our Joel Nelson Group team, we went under contract at 7 of our listings in May; across Washington DC for the week of May 25th, new pending contracts were up 5.5% compared to one year ago, and up 3.4% compared to the week of May 18th.
Mortgage Rates
Mortgage Rates have remained stubbornly below 7% but rose to 6.89% this week; rates have inched up from 6.67% every week for the last four weeks. ALWAYS shop multiple rates to get the best deal.
Find the latest PMMS here, and a read on the mortgage market here.
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Even as mortgage rates edge upward, buyer interest across D.C.—and in Capitol Hill specifically—continues to show strength. With pending contracts on the rise and closed sales remaining steady, the market is moving, and buyers are still stepping in with confidence. Whether you’re preparing to list or looking to buy, staying informed and ready remains essential in this still-competitive spring market.
What will this mean for you and your NEXT MOVE? Reach out for a FREE consultation today: 202.243.7707, or reach your agent here.
Pictured above: This handsome listing at 823 11th St NE near H Street/Atlas with patio + parking went under contract in a week! Check out our current listings in NE + SE Capitol Hill, and SW Waterfront here.
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