Local Real Estate Market Update
JULY 2025
The Federal Reserve met July 30 and—yet again—held interest rates steady, keeping the federal funds rate at 4.25–4.50%.
📉 Many economists (63%) expect a potential rate cut in September, if inflation continues cooling.
👉 Read more about today’s Fed Meeting
Mortgage rates also remained flat this month, averaging ~6.7% according to Freddie Mac. While many buyers are waiting for a drop, a strong economy, continued hiring, and rising incomes have kept rates stubbornly steady.
🔍 What This Means for DC Buyers & Sellers
Buyer activity remains strong – DC’s regional home demand index held at 95 (Bright MLS), down slightly from June but up significantly year-over-year.
🔍 Zooming In: 20002 & 20003 July vs. May
The seasonal slow-down may be just around the corner before picking up again September, (August is typically slower in Washington DC, and picks up again after Labor Day). That said, the July market in and around Capitol Hill neighborhood showed the following trends when comparing 28 days of May, to 28 days of July.
For both fee simple homes and condos, there were fewer NEW listings brought to the market in July compared to May
May was a slow month for condo CONTRACTS, seeing 48% fewer than April; July condos rallied to a 39% increase in contracts and pending sales compared to May.
Fee Simple CLOSES were steady compared to May; condos saw a 10% drop, which mirrors the overall ACTIVE inventory, steady for Fee Simple homes, but 11% lower for condos.
Want to know how these trends affect your price point or neighborhood?
📞 Call 202.243.7707 for a FREE CONSULTATION
We’ll share our Real Know-How to help you make the right next move.
Pictured above:
Our current listing at 417 4th St SE #2 is walkable to Brent ES, Eastern Market, Metro, and lots of parks >>> See inside!