Highlights, Haircuts, and What's Ahead for 2025

Market Update

As predicted, early signs point to a strong start for 2025. As you can see from the charts above, the number of homes sold in the DMV over the last two years has been significantly lower than in 2019, the last "normal" year pre-COVID. In fact, sales were down by 31% in DC, 27% in Montgomery County and 29% in Fairfax County. Meanwhile, prices have surged 31% in DC, 41% in Montgomery County and 46% in Fairfax County.

So why were unit sales down so much in the past two years? A big part of the answer lies in the pandemic-induced shift to remote work, which allowed people to accelerate their life plans and pull forward transactions that would’ve otherwise happened naturally over several years. In addition, the dramatic rise in interest rates over two years ago created a "lock-in" effect, where families were understandably reluctant to give up their low 3% mortgages in favor of new loans with rates well above 6%.

That said, we're starting to see signs of a return to more "normal" levels of activity. Life happens, and like haircuts, at some point, you just need to bite the bullet (yes Steve, this is a hint). Buyers are acclimating to the higher interest rate environment, and the renewed efforts to bring workers back to the office is forcing some of the covid migration patterns to unwind. The return of federal employees to the office will be particularly good news for the DMV. Note, in talking to our Compass national team, several of the cities/states that experienced an incredible run-up in 2020-2022 are now seeing the backside of the mountain (think places like Austin, Miami, Palm Beach, etc.).

2025 may not be all rainbows and butterflies, however. Fiscal, trade and geo-political policies could create all sorts of headwinds for our local residential markets, including inflation, rising interest rates, potential federal workforce downsizing, civil unrest, among other concerns. For now, though, we are incredibly busy helping our clients achieve their real estate goals, one family at a time. If you're thinking about making a move, please give us a call. 

A Look Back at 2024

Before we tackle what lies ahead in the New Year, we want to thank you again for all your support in 2024! Here is a quick recap of some of last year's highlights:

• We helped over 140 amazing families last year!
• Hans, Ginny and the kids had an amazing trip to London this fall.
• Steve and Tati got married in March.
• Wydler brothers celebrated its 20th anniversary and released the audio version of Inside the Sell (narrated by Hans and Steve).
• Mama Wydler left NYC after 60 years and moved to the DMV in July.
• Elysia, our superstar OG and friend, rejoined the Wydler Brothers Family.
• Dina celebrated her one year anniversary with Brett.
• Christina and Brett got married in March.
• Angeline and Ben welcomed their beautiful baby boy, Kit West Lapray in December.
• Molly became a grandmother to sweet Charlie James.
• Eliot traveled to Provence.
• Theo & Valerie’s oldest son, Maxwell graduated High School.
• Adelle celebrated her birthday with family in breathtaking Acadia National Park.
• Tania reached a new record number of concerts, festivals and comedy events in a single year, as well as most Virginia Tech games attended.
• Sonya explored Copenhagen and crossed off Jatak from her Michelin dining list.