Real Estate Market Update: April 2025

Spring is here, but the housing market is moving a little slower than usual.

Existing-home sales dropped nearly 6% in March, showing that high mortgage rates and rising prices are still putting pressure on buyers. Even with more homes hitting the market, affordability remains a significant hurdle. That said, sellers are starting to offer more concessions, and buyers have a little more room to negotiate heading into the busy season.

Want the latest real estate news? Here’s the housing market update for April 2025!

April Housing Market Trends

Inventory and home prices are up, but existing home sales slipped in March.

Existing Homes

In March, the median existing-home sales price increased 2.7% to $403,700, the National Association of Realtors (NAR) reported. Home sales fell by 5.9% in March, and year-over-year, sales dropped by 2.4%.

Home buying and selling were slow in March thanks to affordability challenges due to high mortgage rates, according to NAR chief economist Lawrence Yun. The good news is that household wealth reached new highs, and the housing market is still on solid footing.

New Construction Homes

According to the National Association of Home Builders (NAHB), the median new home price was nearly identical to existing home prices—$403,600. This is down 7.5% from a year ago.

New home sales are doing much better than existing homes. Compared to March 2024, new home sales were 33% higher for homes priced under $300,000 and 28% higher for homes priced between $300,000 and $400,000.

Housing Inventory

The inventory of unsold existing homes was 8.1% higher in March than in the previous month, NAR reported. This is equivalent to a 4-month supply at the current monthly sales pace. 

According to the NAHB, new single-family home inventory improved by 7.9% compared to a year earlier. This represents an 8.3-month supply at the current building pace.

Mortgage Rates

As of the week of April 24, 2025, the average mortgage rate for a 30-year fixed-rate mortgage was 6.81%, according to Freddie Mac’s Primary Mortgage Market Survey.

This is a slight decrease compared to the prior week. Over the last couple of months, Freddie Mac pointed out that the 30-year mortgage has fluctuated less than 20 basis points, and this stability will benefit both buyers and sellers.

DC Housing Market Update

In the Northern Virginia and D.C. housing markets, buyer interest remained steady, and the regional housing market is showing a level of resilience. 

According to the Northern Virginia National Association of Realtors (NVAR), the median sold price in the region, which did outpace the national rate of appreciation, reached $755,625, a 3.5% rise from last year.

Although homes are taking much longer to sell, Northern Virginia saw a massive spike in active listings year-over-year. Active listings increased by 63.6% in March, which also increased the months of supply to 1.45 months, a 58.1% jump.

Not only do buyers have more options, but high household incomes, steady population growth, a solid employment base, and strong buyer demand continue to support home values and position the region for a competitive spring and summer market.

However, Bright MLS warns of potential economic headwinds ahead, which could result in a slower-than-average spring housing market in the D.C. area.

Buyers and Sellers by Generation

NAR’s 2025 Home Buyers and Sellers Generational Trends Report revealed that baby boomers are leading the way in today’s market, not just as sellers, but as buyers too.

Right now, baby boomers make up 42% of all buyers, outpacing millennials (29%), Gen Xers (24%), the Silent Generation (4%), and Gen Z (3%). 

A big reason? Many boomers are using the equity they've built up over the years to buy homes outright, giving them a major advantage in a market where higher mortgage rates are still a challenge. Nearly half of older boomers and two out of five younger boomers bought without needing a mortgage at all.

Meanwhile, millennials, especially first-time buyers, are feeling the pinch of affordability issues. The median age of a first-time homebuyer just hit 38, the highest it's ever been. Gen Xers are still very much in the mix, too, often purchasing larger homes to fit growing or multi-generational families. And even though Gen Z only makes up 3% of buyers right now, they’re slowly making their entrance, with a strong showing from single women buyers in particular.

On the selling side, boomers are dominating even more, making up 53% of all sellers, meaning they’re a major force on both sides of the market right now.

More Sellers Are Offering Concessions

More sellers are offering concessions thanks to rising housing costs and economic uncertainty, according to a new Redfin report.

Sellers gave concessions—perks like covering closing costs, repair credits, or mortgage-rate buydowns—in 44.4% of home sale transactions in the first quarter, up from 39.3% a year earlier.

This shift is largely due to elevated mortgage rates, high home prices, and a growing inventory of listings, which give buyers more options and negotiating power.

For sellers, offering concessions can be a strategic move to attract buyers without lowering the listing price, especially if they purchased their homes during peak market conditions and are now facing higher mortgage rates.

Final Thoughts

Will this spring finally tip the scales for buyers? It’s starting to look that way, but challenges aren’t disappearing overnight.

Inventory is climbing, giving buyers more choices than they've had in years. At the same time, mortgage rates remain a hurdle, keeping affordability top of mind for many. Still, steady demand and a competitive spring market are keeping prices resilient in many regions, especially in places with strong job growth and high incomes like the D.C. area.

As we head deeper into the spring and summer selling season, staying flexible (whether you're buying or selling) will be key.

Looking to buy or sell in the DC area? Don’t navigate the complexities of the current housing market alone! Reach out today for expert real estate leadership.