December Housing Market Update
Winter has officially arrived in Northern Virginia, bringing with it the holiday season and chilly days. As we enjoy the winter season, we hope you, your family, and your loved ones are well.
Here at 5 Elements Real Estate Advisors, we are excited to continue to support you through the winter housing market and beyond.
Read on for an inside look at the current real estate market in the DMV.
Winter Housing Market: Slower Pace, Steady Strength
As the winter weather rolls in, the housing market is following suit with a seasonal cooldown, but this slowdown looks a little different. While activity has eased compared to the frenzied pace of the past few years, the market remains surprisingly resilient, driven by historically low inventory and a core of confident buyers.
The housing market slowed down, but didn’t stop due to the historically low inventory. We still see multiple offers for homes that are move-in ready and well priced.
What does this mean for home buyers?
Even as buyers take a more measured approach, open houses are still drawing steady interest and well-positioned listings continue to sell. We saw buyers slow down, but so far we still see an active housing market based on the number of sales and open house activities.
For many, this more balanced market offers long-awaited breathing room. After years of intense bidding wars, waived contingencies, and all-cash offers, buyers who once sat on the sidelines are stepping back in, especially those with stable employment and strong financial footing.
Those home buyers whose jobs are not at risk and who were put off by the crazy bidding wars are now returning to the market.
Still, the broader economic picture continues to influence confidence. Housing experts are keeping a close eye on job reports, consumer spending, and foreclosure activity to gauge how sustainable this stability will be through winter.
Recent Statistics
According to ATTOM’s August 2025 report, 35,697 U.S. properties had a foreclosure filing, including default notices, scheduled auctions, or repossessions. That marks an 18.1% increase year-over-year, with filings rising for six consecutive months. However, experts note that overall foreclosure rates remain low compared to historic peaks, thanks in part to tighter lending standards.
High equity remains one of the housing market’s greatest safeguards. Many homeowners have built significant wealth in their properties over the past decade, providing a cushion against financial stress. Jesse Wade of the National Association of Home Builders (NAHB) reports that the "market value of U.S. household real estate assets reached a record $49.3 trillion in Q2 2025, up 2.7% from Q1. With liabilities at $13.5 trillion, that leaves owners’ equity at $35.8 trillion—or 72.6% of total assets, the longest stretch above 70% since the 1950s."
In short, the market’s foundation remains strong. While buyers and sellers alike are adjusting to higher rates and a slower pace, the fundamentals (limited supply, high equity, and continued demand for well-priced homes) are keeping real estate moving forward this fall.
Final Thoughts
The frenzy may have cooled, but opportunity hasn’t disappeared. For buyers, this season might be your best chance to have a bargain for listings that have been sitting on the market for longer than usual. For sellers, well-prepared listings still have the power to attract competitive offers, and if you plan to sell in 2026, it is the time to reach out to a trusted Realtor® to plan ahead!
Winter may be a season of change, but in real estate, change often brings new opportunity.
Curious in learning more about the rental market in the DMV?
Reach out for a free, no-obligation consult at 703.677.0709 / fenny@kw.com.