Adjusting to an Adjustment Market

It’s hard to believe we’re already halfway through 2025. Like many of you, the start of Q3 is when I take stock; reviewing year-to-date progress, identifying opportunities for improvement, and mapping out a strong strategy for the second half of the year. Along with my own business performance, I always look at the broader DC real estate market to understand what’s shifting and what remains steady. Here’s where we are now:

If you’ve been reading headlines lately, you’ve probably seen speculation about a DC "exodus," with DOGE cuts and federal job uncertainty blamed for softening the market. Yes, federal restructuring has had an impact. Increased inventory from retirements and relocations is real. But the bigger picture tells a more measured and reassuring story; DC remains one of the most stable and resilient real estate markets in the country.

To understand today’s market, it’s helpful to rewind a bit. The years following the pandemic, especially 2021 and 2022, were defined by record-low interest rates, surging demand, and very limited inventory. That imbalance pushed prices upward at an unsustainable pace. Rising this quickly, the market was bound to eventually normalize. We’ve been in this phase of correction, not collapse, over the last 18 to 24 months.

Let’s look at the data. Here are the number of homes sold in Northwest DC between January 1 and July 1 over the past five years:

• 2021: 3,561 units sold

• 2022: 3,221 units sold

• 2023: 2,272 units sold

• 2024: 1,979 units sold

• 2025: 1,980 units sold

After a steep decline from 2021 to 2024, sales volume has leveled off which signals the market is adjusting and beginning to stabilize. Real estate is no longer appreciating at the rapid pace we saw during the height of the pandemic, but it is still growing at a healthier and more sustainable rate.

The luxury segment remains extremely active. In 2025, we’ve already seen two sales above $10 million and two closed sales above $20 million. But beyond that top tier, this is a market that requires thoughtful planning. As always, well-designed properties in desirable neighborhoods that are move-in ready continue to attract strong buyer interest. Success isn’t about simply being in the market - it’s about having a clear strategy and smart execution.

Compared to this time last year, our team’s sales volume has more than doubled. Why? Because we’ve adjusted to a changing market and continue to guide our clients through every nuance, from pricing and presentation to timing and negotiation.

Bottom line: this is still a market full of opportunity, but strategy matters. Whether you’re buying, selling, or just exploring your options, my team and I are ready to help you navigate with confidence.

REAL ESTATE IN THE NEWS

What Buyers Need To Know About Homeowners Association Fees

When buying a home, you’re probably thinking about mortgage rates, home prices, your down payment, and maybe even your closing costs. But you may not be thinking about homeowners association (HOA) fees. While you won’t necessarily have these, you should know it’s a possibility, depending on where you decide to live.

Courtesy of Keeping Current Matters

LOCAL HAPPENINGS

July 11th - August 1st

Capitol Riverfront Summer Concert Series

Located at the Yards Park, relax and enjoy the river view, fantastic bands, food and beverage, and a large variety of great restaurants within a few minutes walk from the park.

Get more info here!

Friday, July 18th

Free Film Screenings Outdoors on the REACH Video Wall

Extraordinary Cinema: Julie & Julia! Film starts at dusk at REACH, The Kennedy Center

Click HERE to learn more!

Saturday July 19th - Sunday July 27th

Mubadala Citi DC Open

The Mubadala Citi Open has announced its first round of player commitments for the 2025 event, including seven top 10 players across both the ATP and WTA tours. The 56th edition of the tournament will take place July 19 - 27. The Mubadala Citi DC Open is the fifth largest professional tennis event in the United States, consistently attracting one of the most competitive player fields on the summer calendar.

Click HERE to learn more!

LIFESTYLE TIPS & TRICKS

17 Flowers You Can Grow Almost Anywhere for an Easy, Thriving Garden

These flowers practically grow themselves.

Courtesy of Martha Stewart

9 Things To Toss From Your Pantry Right Now

Cleaning out your pantry can be an excellent way to refresh your kitchen and get a better sense of the usable ingredients you have on hand as well as those you need to replace.

Courtesy of Southern Living

How Often Should You Clean Your Bathroom Exhaust Fans?

Bathroom exhaust fans are unsung household heroes, running unnoticed in the background.

Courtesy of ReBath

Logan Circle

27 Logan Circle, NW Unit 5

3 BD 3 BA 1526 SF $975,000

Forest Hills

3407 Fessenden Street Northwest

4 BD 4 BA 2616 SF $1,185,000

Katherine Pennington

Realtor® in DC, MD & VA

M: 301.302.4135

O: 202.448.9002

katherine.pennington@compass.com

+$173M Team Sold In 2023