Should You Buy a Home in Washington DC
There is a LOT going on in DC right now. This is not a calm environment by any measure. Some government employees expect layoffs, others are called back into the office, Elon Musk is on the loose, and mortgage rates aren’t supposed to come down this year. Home buyers are saying, “we’re just going to take a pause and wait this out.” This year, should you buy a house, if so, when should you buy and what are the most up to date tips for getting your house.
You may see other videos about DC, but no one does them like this. We show you exactly what it’s like here. Unlike many other videos out there, we do not use AI at all. This is all real, all genuine so make sure you subscribe so you don’t miss the new videos.
Times are totally beyond wild right now. But, let’s travel back in time to 1971. In January, Marvin Gaye released “What’s Going On.” The song was about police brutality – a very relevant topic for the early 70’s. In February, NASDAQ was established in New York City. In March, a bomb was detonated in the US Capitol. In April, half a million people marched in DC in protest of US participation in the Vietnam War. In May there were May Day protests of the war and 13,000 anti-war protestors were arrested. The rest of the year had plane crashes, train crashes, Charles Manson’s trial, KKK bombings, racial tensions, murders and the Pentagon Papers published in the New York Times. Wild wild times. Not unlike today. Actually, 1971 sounds worse in a way.
In 1971, mortgage rates were 7.5%. If you were alive in 1971 and said, “I’m going to wait until the world is less chaotic and mortgage rates go down,” guess what? You would not have bought a home until 1993 when rates once again dipped below 7.5%. You would have rented for 22 years – and paid someone else’s mortgage instead of your own!
Who Should Buy a House in 2025?
I don’t want to belittle the fact that there will be actual job loss here but so far everything that is happening has been a knee-jerk reaction. Some agencies are putting people on administrative leave without having received specific directives. Other agencies are sending employees back to DC, creating another category of people who will need homes.
If you work for the Federal Government or an adjacent position with a contractor, and there is reason to believe your position is in jeopardy, you hold tight. Don’t make any major moves just yet with your job situation.
If you’re not with the government or adjacent contractor position, then pay attention. I am going to scream it. You need to stop panicking. Just because a third of the DC metro area population is worried about their job doesn’t mean you need to be worried with them. I don’t want to sound insensitive here but you if this isn’t your first Melissa video you know that I don’t beat around the bush. You should absolutely continue your search. This is where everyone goes wrong. Stop following the crowd. When they go left, you go right.
When is the Best Time to Buy a House?
EVERYONE always asks me when the best time to buy is. The answer is always “last year, 5 years ago, 10 years ago.” In the last year, I have also heard a whole lot of, “Maybe I’ll wait until spring when there’s more on the market” or “maybe I’ll buy when interest rates come down.”
In the past couple weeks since the “Fork in the Road” email came out, several clients said they want to wait until everything settles down with the “new administration.” That’s really code for “What did Trump and Elon Musk do now?”
Everything in real estate boils down to a timing question, so we are going to cover the Art of Timing!
Timing a Real Estate Transaction in 2025
The market gives us these little gifts of excellent timing throughout the year. Right now, we have one of those little gifts. When it comes to real estate, timing a purchase is not as broad a concept as telling someone: “Buy in spring” or “Buy when interest rates come down.” Buying a house because the interest rate is low is like getting married on a Monday morning because a reception hall offered you their venue for free. Buy a house when you need to buy a house. Then wait for the rates to come down. Then refinance.
Buy at times of the year that aren’t as popular and buy when rates aren’t at their lowest. Why? Because hands down, there are better opportunities during those windows of time. Mastering the art of timing will determine if you get your dream home or someone else does.
Right now, there is a lot of uncertainty and people are scared it isn’t the right time to buy. If there would have been 10 buyers for a given house this spring and now there are only 6 because people are on the sidelines, you need to get in the game and stay there until you have your home. This uncertainty will pass and then all those people will be back in the market again. And just like 3 months post-covid, you’ll be kicking yourself that you didn’t buy while no one else was.
Tips for Buying in Washington DC, Maryland or Northern Virginia in 2025
The DC Area is an extremely fast and competitive real estate market. It is the most competitive in spring because it’s a common belief that spring is the best time to get a home. Every year I tell people to stop this madness because the smart ones snap up homes in the late summer and fall. But if you find yourself out there this spring, let’s talk about some tactics you need to know.
1. If a home is listed that looks promising, you need to see it as soon as possible. Don’t wait for the public open house. The sooner you get in to see it, the more time you have to plan your strategy before an offer deadline is imposed. If you aren’t ready to move fast, then this may not be the market for you. In fact, DC may never be the market for you. But figure out how to play the game because our prices only go up here.
2. We are back to pre-offer inspections. Don’t fight it. You can either waive the home inspection entirely and take your chances or you can do the inspection prior to the offer. If you want to put an offer in with a home inspection, your offer will be rejected 99% of the time in favor of someone who didn’t elect to do an inspection.
3. If you find a home that’s an 8/10, don’t sleep on it. We are anywhere between 2.5 and 4 million houses short of what is needed in this country. If you don’t get that house, someone else will. Give up the idea of finding a 10 out of 10. You won’t get it here. If a house checks 80% of your boxes, don’t wait.
4. You don’t have time to mull things over in this market. Even if a property has been on the market for 2-3 months, I guarantee you this – the same day you decide to write an offer, someone else is considering the same thing.
5. Give the seller an offer they can’t refuse. Get their attention. Do something dramatic. Send in an offer immediately, or over list price, or with a free rent-back. Don’t think you can start below list and then put in an escalation after when other offers come in. If you are willing to pay more, then show that right away.
Timing has nothing to do with luck and everything to do with being ready, willing and able. There is no such thing as a perfect time. If you know what you want, know when you want it and are ready to make it happen, waiting will only cost you. Those who wait the longest pay the most – whether it’s financially or emotionally.
