Washington DC Home Prices Surge 4% in Second Quarter, Outpacing 2025 Figures

Washington DC’s residential property market showed fresh signs of strength this spring. Median sale prices across the city rose to $728,500 for the quarter ending in June, a 4% increase compared to the same period last year. Data provided Wednesday by the DC Policy Center confirms that the capital’s already-expensive real estate is climbing even higher—despite affordability concerns and flat wage growth for many residents.

Spring Surge Driven by Low Inventory

The brisk price growth lands as buyers face tight supply and persistent demand, especially in established neighborhoods. This quarter, only 4,300 homes changed hands in the District—a notable 7% drop in transaction volume year-over-year, according to the Greater Capital Area Association of Realtors (GCAAR). Specialists at Truxton Circle-based brokerage HomeVisor DC say the squeeze is driven in part by a relative trickle of new listings, as homeowners hang onto their mortgages locked at lower rates. Baby boomers in Woodley Park and upper Northwest, in particular, are waiting out the current lending climate rather than downsizing, agents report.

With few move-in-ready homes coming onto the market, competition heats up in neighborhoods like H Street Corridor and Navy Yard. On Sixth Street NE, a modern rowhouse with a 1-car garage recently fetched $992,000—$62,000 above list—after just eight days. Over by Nationals Park, two-bedroom units at eNvy Condominiums are now listing at $825,000, a rise from $759,000 last May.

Premiums in Core Neighborhoods, Modest Growth Elsewhere

The strongest gains continue in classic zip codes. Capitol Hill, according to GCAAR’s June summary, posted a quarterly median of $974,430, up 6.8% year-on-year. Custom homes near Eastern Market are reliably drawing cash offers and multiple bidders. At the very top end, Georgetown homes are averaging $2.1 million, setting a new post-pandemic milestone. In emerging areas, the uptick is less dramatic but steady. Kingman Park, immediately east of the H Street corridor, posted a median of $669,000 in Q2, a 2.4% bump over 12 months.

Meanwhile, new inventory is slow to relieve the squeeze. Just 112 units came online in the NoMa-Union Market corridor in the last three months, thanks to ongoing permitting bottlenecks at the DC Department of Buildings. The city’s Inclusionary Zoning (IZ) program did place 21 affordable units, but lottery competition remains fierce, particularly among first-time buyers.

Market-watchers see no sign of broad price relief before autumn. Rates for 30-year fixed mortgages are holding above 6.5%, and Northern Virginia’s competitive suburbs are siphoning budget-constrained buyers across the river—leaving core DC values firm. Condo sellers in Logan Circle and Adams Morgan, facing a more balanced market, are advised to invest in staging and prep to stand out this summer. For detached and rowhouse owners in the city’s established clusters, the message is clear: expect more buyers knocking, and don’t rush to cut your price.