The Washington, DC metro area housing market is currently experiencing a complex set of dynamics as we enter 2025. The Median Sales Price has decreased by 4.3% year-over-year, now standing at $526,279. This decline contrasts with the Median List Price, which has risen by 10.8% to $565,000, indicating a potential gap between seller expectations and buyer willingness.

In terms of Price Per Square Foot, the median price has increased by 6.5% to $290.57, while the Median List Price per square foot has seen a 7.7% rise to $307.08. These figures suggest that while overall sales prices have decreased, the value attributed to each square foot of property has appreciated, reflecting a nuanced market valuation.

Sales activity presents a mixed picture. The number of Homes Sold has increased by 4.8% year-over-year, reaching 3,070 units. However, Pending Sales have decreased by 11.3%, totaling 3,713. This decline in Pending Sales could indicate a slowdown in future transactions, despite the current uptick in completed sales.

New Listings have increased by 8.3%, with 4,166 properties entering the market. Inventory levels have also risen by 10.1%, now at 7,559 units. The Months of Supply, a critical indicator of market balance, has increased by 20% to 2.5 months, suggesting a shift towards a more balanced market, though still favoring sellers slightly.

The Median Days on Market have increased by 2% to 50 days, indicating that homes are taking slightly longer to sell compared to the previous year. The average sale to list ratio remains stable at 99.6%, with a marginal year-over-year increase of 0.1%. The proportion of Homes Sold above list price has risen by 0.7% to 30.7%, suggesting competitive bidding in certain segments.

Price Drops have seen a slight increase of 0.5%, now at 19.4%, reflecting some adjustments in seller pricing strategies. The percentage of homes going Off Market Within Two Weeks has decreased by 2% to 43.3%, indicating a slight cooling in the speed of transactions.

Overall, the Washington, DC metro area housing market is characterized by rising list prices and inventory, alongside a decrease in sales prices and Pending Sales. This combination of factors suggests a market in transition, with potential opportunities for both buyers and sellers depending on their specific circumstances and strategies.