Sterling, VA Market Update – Oct 2025

October 20, 2025

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The Home Demand Index (HDI) for the Washington D.C. metro area is at 92 in the latest report, up from 88 last month. This month-over-month increase breaks a five-month streak of consecutive declines, suggesting a potential stabilization in buyer activity. Compared with last year’s index of 88, demand remains slightly stronger, reflecting a modest improvement over the same period. The market continues to be categorized as Steady, indicating balanced conditions after a period of slower activity.

Buyer demand in Washington D.C. is trending upward this month, with most home types showing growth. Luxury condos saw the largest gain, up 24% from last month, while luxury single-family homes rose 18%. Townhouses increased 6%, mid-range single-family homes grew 4%, and entry-level condos edged up 1%. Entry-level single-family homes remained flat. Overall, higher-end segments are seeing stronger demand, while entry-level markets remain steady, highlighting continued buyer interest amid seasonal shifts and limited inventory.


Here’s a snapshot of what local title companies in Loudoun County are seeing in the most recent contracts. It’s a great indicator of what terms are being accepted in today’s market. Most buyers are now able to include a home inspection and retain their appraisal contingency.

 

 

 

 

 

 

 

 

If you are considering a move in 2026, now is the time to get guidance and support on how to navigate the housing market.  Message me to get started.