Q1 2025 Housing Market Update
- Chrissie Goodrum
- Apr 14
- 5 min read
Most people I have been talking to over the past two weeks have been concerned about the stock market as it relates to housing & mortgage interest rates, pursuant to President Trump's global tariff announcements. After a week of sharp decline, the stock market rebounded on April 9, following the administration's tariff "pause", planned for 90 days - roughly through Q2, 2025. Alas, the sky is not falling... it's just a bit volatile right now. My advice to buyers and sellers is to hang tight! Everything will be okay!
Housing Inventory. Closed Sales & Home Prices are all on the RISE
Last year, the chief economist of Bright MLS, Lisa Sturtevant, PhD, predicted there would be 7.5% higher sales activity in 2025, as compared to 2024. She predicted that home prices would NOT fall. She said there was significant pent-up demand in the market, as buyers were sidelined in 2024 by higher-than average mortgage-interest-rates. She also said there was pent-up supply, as would-be sellers had also been waiting for mortgage rates to drop before listing their home for sale. I wrote about this in my DECEMBER 2024 BLOG POST
So far, Lisa's predictions have rung true on every single metric.
In March 2025, listings were up by:
+25% in Fairfax County, compared to March 2024
+37% in Loudoun County, compared to prior year
+29% in Frederick County, MD, compared to prior year
+18% in Arlington County, compared to prior year
+1% in Jefferson County, WV, compared to prior year
Home prices have continued to increase across the region.
Year-to-date, for detached single family homes, the following counties reflected price increases of up to 7%.
$1,482,657 was the average sold price in Arlington County (+5.5% from Q1 2024)
$1,204,290 was the average sold price in Fairfax County (+5.4% from Q1 2024)
$1,119,268 was the average sold price in Loudoun County (+6.9% from Q1 2024)
$598,715 was the average sold price in Frederick County, MD (+1.06% from Q1 2024)
$441,518 was the average sold price in Jefferson County, WV (-.15% from Q1 2024)
Examples of homes sold in Q1 2025
Rather than simply looking at graphs and statistics, I know everyone enjoys seeing what homes LOOK LIKE that sell for those "average" prices. I'm here to spill the tea :)
In Arlington, 2607 South June Street sold on 3/21/2025 for $1,485,000,
Situated on a .15 acre lot, this property went under contract after 4 days on the market. Built in 1952, the home had several recent renovations & had been listed at $1,450,000.
In Fairfax, 8717 Stockton Parkway sold on 2/28/2025 for $1,205,000.
A waterfront property in Alexandria situated on .45 acres, this ranch styled home was built in 1958. It went under contract after 2 days on the market, and had been listed for $1,150,000.
In Loudoun, 37614 Hughesville Road sold on 3/10/2025 for $1,125,000.
This "Deck House" was built in 1975 and is situated on a 3.38 acre lot. Listed for $1,075,000, this home went under contract after one day on the market.
In Frederick County, MD, 817 Jefferson Pike sold for $595,000 on 3/19/2025.
Built in 2020, this property sits on a .15 acre lot in Brunswick. It went under contract immediately (0 days on market) after the seller listed it for $590,000
In Jefferson County, WV, 641 Duncan Field Lane sold for $445,000.
Situated on a 3 acre lot, this home, built in 1989, was on the market for 10 days before going under contract.
What's next?
Of the 967 homes sold in Loudoun County in Q1 2025, 74% were financed with conventional loans, 14% were cash purchases, 6% were financed with VA loans, and 5% were financed with FHA loans.
The most important thing buyers can do right now is to make sure they are working with a competent mortgage lender (assuming they need financing) or have an updated bank statement showing proof of funds, to substantiate a cash offer. I personally won't show a home to any buyer unless and until they show me a lender pre-approval letter or bank statement, because I do not like to waste anyone's time or create false expectations for buyers or sellers of real estate. I network with a lot of terrific local lenders and have contact information for several on my website: LOCAL LENDERS
The most important thing sellers can do right now is to work with a competent listing agent who is adept at pricing their home and presenting it as best as they can. I toured a few properties over the weekend with qualified buyers in Loudoun County and two of the homes we toured had been on the market for well over one month. In Q1 2025, 71% of homes sold in Loudoun County were on the market for 20 days or less before going under contract, regardless of price point. If a seller thinks that they do not need to paint or depersonalize or stage a home to make it enticing to online buyers, they are not keeping up with the housing market. Your listing agent should not just be a "yes" person who tells you what you want to hear; your listing agent should be an important advisor who is adept at telling you what you NEED to hear, so you can spend as little time on the market and move on to your next adventure, whether that is down the street, across the county or in a different state.
Final thought of the day
My last piece of advice for everyone is to make sure to FILE YOUR TAXES (or your extensions) tomorrow! Before I got my real estate license, I worked as a CPA and LOVED to get calls from clients outside of tax season to provide feedback on financial matters such as home purchases and sales. Real estate can really help people build their financial portfolios in so many ways and it is important to consult with a CPA if you'd like to embark on a 1031 exchange, minimize capital gains from a home sale, or use an IRA or 401k for a tax-free role over to help with purchasing a home. Below is a video I recorded with Fox 5 News about financial literacy. It pays to be informed!
Thank you for reading and please text or call me with any questions!
Comments