Local Real Estate Market Update
APRIL 2025
April 2025 Market Update: Washington, D.C. Real Estate Trends in 20002 & 20003
As we move through the spring season, the Washington, D.C. housing market—particularly in the Capitol Hill neighborhoods of 20002 and 20003—continues to exhibit resilience amid economic uncertainties and fluctuating mortgage rates. Here’s an overview of the latest market trends, supported by recent data.
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Mortgage Rates and Buyer Activity
The average 30-year fixed mortgage rate has seen a slight decrease, averaging 6.81% as of April 24, 2025, down from 6.83% the previous week. Mortgage applications have reacted to slight rate drops and increases; after a notable 20% increase in early April, applications decreased by 12.7% in the week ending April 18. This fluctuation reflects the ongoing sensitivity of buyers to rate changes and broader economic factors. Find the latest PMMS here, and a read on the mortgage market here.
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Buyer Demand and Market Activity
The Home Demand Index (HDI) for Washington, D.C. Metro, stands at 92 (95 for DC-only), up from 77 last month and slightly above last year’s 87. This increase suggests growing buyer interest, possibly influenced by favorable market conditions or a shift in inventory levels. For example, the demand index for single-family homes shot up in two price range categories in April compared to March —
Mid-range: $555k – $1,34MM rose from 65 to 84
Luxury: $1,34MM and above rose from 94 to 124
Source: Bright MLS T3 Home Demand Index, April 2025
Fee Simple Homes (Single-Family and Townhouses)
Comparing month-to-month data for 20002 and 20003 from Bright MLS:
Compared to a very active March, new listings are up 4% and active listings up 12%, with closed sales up 8% but contract and pending sales down 24%. For all active listings, more than half of 20002 actives (54%) and 2/3rds of 20003 actives (68%) have been on the market for less than 45 days.
Condominiums
For condos in the same areas:
While new condo listings are only up 1% from March, all active listings are up 11%; half of all active condo listings have spent less than 45 days on the market. Pending sales are up 9%, and closed sales (up significantly — 39%) from March.
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Conclusion
The Capitol Hill market in 20002 and 20003 continues to show strong buyer demand, with rising activity in both the fee simple and condo segments. While mortgage rate fluctuations have tempered contract activity for some property types, closed sales remain strong and listings are trending upward.
Sellers are benefiting from steady demand, especially in well-priced segments, while buyers are seeing slightly more options and potentially more negotiating room. As rates remain in the high 6% range, readiness and strategy will be key for both sides of the transaction in the months ahead.
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