The DC-Area Housing Market Is Thawing, But Needs New Listings

• March 11th

by UrbanTurf Staff

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The DC area housing market in February revealed a split personality: buyers showing tentative signs of life while sellers remained stubbornly on the sidelines.

New listings fell to their lowest February level in more than two decades, with just 3,574 homes coming onto the market — a 13% drop from a year ago, according to the latest report from Bright MLS. The new supply drought was widespread across the region, with nearly every jurisdiction posting declines.

On the demand side, falling mortgage rates gave buyers a nudge. The 30-year fixed rate dipped to a 3½-year low during the month, helping push new pending sales up 3.9% year-over-year in the region— with contracts on detached single-family homes surging 7.6%. Showings also climbed 3% compared to February 2025.

The local picture was uneven. Northern Virginia's inner suburbs continued to move at a brisk pace — Fairfax County, Arlington, and Loudoun all posted median days on market of just 5 to 11 days, and Fairfax County saw closed sales jump 6.3% with a median price of $729,000. DC proper told a different story: closings fell 18.8% and the median price fell 6.2% to $599,000. 

“Caution for buyers and sellers has become the norm in today’s housing market," the Bright MLS report stated. "While lower rates will support the spring market, renewed economic uncertainty in light of the war with Iran, could impact the activity level."

Thumbnail photo of home that went under contract in February. By Home Visions Media.

This article originally published at https://dc.urbanturf.com/articles/blog/the_dc_area_housing_market_is_thawing/24399.