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The State of the Housing Market in Washington, DC & Surrounding Areas – August 2025
Market in a Minute & StatPak August 2025
We profile the most important market indicators every month – contract activity, interest rates, inventory, affordability, and direction of the market – in an easy-to-read and digest summary. It’s not just the numbers; it provides context to understand why the numbers are important and what they mean for the future of the market. Published for Washington, DC, Montgomery County, Prince George’s County, Northern Virginia, and Loudoun County. A quick summary of last month’s contract activity is shown below. To see the complete “Market in a Minute” reports for each jurisdiction we cover, click on the corresponding links.
What’s the Urgency Index?
This is simply the measure of the percentage of homes going under contract that were on the market 30 days or less, giving a sense of how quickly buyers feel they must act to put an offer on a home. To see your market’s Urgency Index, click the link to view the full report.
Washington, DC
August 2025 StatPak – View Full Report
Contract activity in July 2025 was up 2.4% from July 2024 and was up in three out of six price categories. Through the first seven months of the year, contract activity is down just 0.8%. The average number of days on the market for homes receiving contracts was 62 days in July 2025, up from 52 days in July 2024.
Montgomery County
August 2025 StatPak – View Full Report
Contract activity in July 2025 was down just 0.5% from July 2024 and was down in three price categories. Through the first seven months of the year, contract activity is down 1.5%. The average number of days on the market for homes receiving contracts was 37 days in July 2025, up from 22 days last July.
Prince George’s County
August 2025 StatPak – View Full Report
Contract activity in July 2025 was down 17.5% from July 2024 and was down for all five price categories. Through the first seven months of the year, contract activity is down 11.7%. The average number of days on the market for homes receiving contracts was 46 days in July 2025, up from 31 days in July 2024.
Northern Virginia
August 2025 StatPak – View Full Report
Contract activity in July 2025 was up 3.0% from July 2024 and was up for three price categories. Through the first seven months of the year, contract activity is up just 0.3%. The average number of days on the market for homes receiving contracts was 33 days in July 2025, up from 24 days last July.
Loudoun County
August 2025 StatPak – View Full Report
Contract activity in July 2025 was up 5.2% from last July and was up for four price categories. Through the first seven months of the year, contract activity is up 6.1%. The average number of days on the market for homes receiving contracts was 38 days in July 2025, up from 21 days last July.
Virginia Countyside
August 2025 StatPak – View Full Report
Contract activity in July 2025 was up 1.0% from last July and was up for four price categories. Through the first seven months of the year, contract activity is down just 0.3%. The average number of days on the market for homes receiving contracts was 44 days in July 2025, up from 31 days last July.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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Three Unexpected Advantages For Today’s Homebuyers
Think it’s the wrong time to buy? These current market perks might just change your mind.
With the current fickle market, it’s natural for homebuyers to feel hesitant about making a purchase. Interest rates aren’t providing much wiggle room, so the uncertainty is giving everyone pause. We get it! However, we’re here to challenge the question: “Should I wait this one out?”
Surprisingly, buyers may be missing out on a few hidden perks that this current market has to offer, namely less competition, excellent negotiation conditions, and boosted flexibility with timing. Let’s get into it!
1. Avoid The Hidden Costs of Waiting
It’s easy to think you’re playing it safe by waiting. You don’t want to overpay for a home, get too high an interest rate, or make a move at the wrong time. That makes sense. But here’s what many people don’t see right away. Here’s what can happen while you wait:
- Rent continues to rise
- Home prices are stabilizing (increasing in some areas)
- You’re missing out on building equity
- You pass on homes that could’ve been a great fit
There is a real cost to waiting. When you buy now, you can take advantage of today’s negotiating power and start building long-term wealth through homeownership, all while avoiding the cost of inaction. Buyers who make a move today often gain more control over their finances tomorrow.
2. Take Advantage of Buyer-Friendly Conditions
While some buyers are still on the fence, others are already making moves, and it’s not because they’re trying to perfectly time the market. It’s because they recognize the unique opportunities available right now. Here’s what we’re seeing:
- Less competition, which means fewer bidding wars and more negotiating room
- Motivated sellers offering concessions like help with closing costs or interest rate buydowns
- More inventory in certain markets, giving buyers more options and breathing room
- The ability to refinance later if rates drop (ask us about Rate Rebound), but not the ability to go back in time and buy the home you missed
The idea of “date the rate, marry the house” is becoming more and more appealing as time goes on. Acting now could give you more control, more choices, and long-term financial advantages, especially once you’re able to refinance down the road.
3. Build Long-Term Stability and Wealth Through Homeownership
Many renters and potential buyers are asking this question: Is owning a home still a good investment? The short answer is YES. Here’s why buying still makes sense:
- You build equity with every payment (renting doesn’t offer that benefit)
- Your monthly payments stay consistent, while rent often increases year after year
- You can benefit from tax advantages that aren’t available to renters
- You’re in control, from everything like designing your space to how you improve its value through renovations and remodeling
Even if you don’t plan to stay in your home forever, those early years of equity, stability, and ownership can significantly impact your financial future. In other words, the earlier you start, the more you stand to gain.
If you’ve been unsure about whether now is the right time to buy, we’re here to help you look at the full picture and assess your options. We can answer your questions and help build a strategy that works for you, now and in the future. Ready to ditch the hesitations and leap into the future? We’ll be here, ready with a preapproval whenever you are.
Bill Stern | The Stern Team
Branch Manager | NMLS ID # 267577
CMG Home Loans | NMLS ID# 1820
M: 540-222-0164
bstern@cmghomeloans.com
Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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New Mortgage Rules: What Foreign Buyers Lose and All Borrowers Stand to Gain
Two major changes to know about – one restricting access for some foreign buyers, and the other aiming to protect all consumers from unwanted lender solicitations.
There are times when the residential mortgage industry is relatively free of program and policy changes. This has been the case for the past couple of years as rates have remained stubbornly high with fewer underwriting guideline changes and new loan programs.
But there are two recent industry developments to be aware of: one of which will have a negative impact on some consumers, and the other, which should prove beneficial to all consumers.
In May of this year, FHA and USDA announced that their mortgage loan programs would no longer be available to individuals who are neither US citizens nor permanent resident aliens. Prior to the change, both programs were often utilized to provide mortgage financing to non-citizens and non-permanent resident aliens who otherwise had social security numbers and could document their right to work in the United States.
For instance, an H1B Visa holder who had obtained a social security number and had built a two-year credit history was eligible for both FHA and USDA financing. That is no longer the case. According to FHA, there were 603,040 FHA purchase loans in 2024, and approximately 2.8% of those (roughly 16,885 loans) were made to foreign nationals. Going forward, it will be more difficult for foreign nationals to obtain mortgage financing.
On the flip side, the current Congress is poised to pass legislation to ban what the mortgage industry calls trigger leads, which have been a significant annoyance for consumers. For several years, the three major credit bureaus have sold data when a mortgage lender obtains a consumer credit report – including consumers’ names and contact information – which some lenders across the country then used to make cold calls and send texts and emails offering their services.
When a consumer makes an application with a mortgage lender and the lender pulls a credit report, the credit reporting agencies transfer the consumer’s contact information almost immediately to other lenders who have paid for that information. The process is automatic and results in consumers receiving multiple calls, texts, and or emails almost immediately after the consumer’s chosen lender receives the credit report. Consumers are usually confused and annoyed as to why they are receiving the communications, and have reported that the onslaught of outreach can be overwhelming.
The mortgage industry has lobbied Congress to ban the credit bureaus from the practice of automatically selling consumer contact information, and both the House and Senate recently passed similar stand-alone bills to do just that. The legislation will go through a reconciliation process and likely be sent to the President for signature, hopefully bringing relief to pestered consumers in the next few months.
No matter what changes occur in residential lending, our Atlantic Coast Mortgage team is knowledgeable, professional, and happy to assist you with the programs to achieve your ownership goals.
Brian Bonnet, SVP, Sr. Loan Officer, NMLS ID 224811
Atlantic Coast Mortgage, NMLS ID 643114
O: 703-766-6702 | M: 703-304-0188
Email Me
Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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Super Tool or Scam Attractor? When AI Turns Risky in Real Estate
AI can find your dream home – but it can also impersonate your agent and steal your deposit. Learn how to spot the difference.
Imagine a near-future real estate experience involving a virtual assistant who knows your taste in countertops, a chatbot that helps write your property’s listing copy, or a digital eye that scans satellite images to price your property. The age of Artificial Intelligence in real estate, where technology is transforming how we buy, sell, and live in our homes, isn’t around the corner… It’s HERE.
But while AI promises convenience, efficiency, and savings, it also introduces new risks. In a region as diverse as ours – spanning high-tech hubs in Northern Virginia, cozy neighborhoods in Maryland, luxury condos in D.C., equestrian estates in the western suburbs, and rural land in West Virginia – the technology’s influence can be both helpful and harmful. And anyone involved in a real estate transaction needs to keep alert for ways criminals are using AI to derail transactions and steal funds.
Here’s how AI is shaping the housing market for consumers – and what to watch out for.
The Good: AI Tools That Help You Buy or Sell Smarter
Many parts of the homebuying process are already influenced by AI tools, which are used by a growing majority of real estate agents who appreciate a streamlined process for everyone: less paperwork, more personalization, and faster deals.
Platforms like Zillow, Redfin, and Realtor.com use AI to suggest homes based on browsing behavior, tracking what you click on to deliver tailored, personalized results.
On the seller’s side, real estate agents turn to AI to make a property’s marketing stand out with descriptive copy that can be fine-tuned in seconds to specific audiences and social media platforms (ChatGPT is the most popular, but Google’s Gemini, Jasper AI, and Copy.ai are among many other competitors). Within MLS databases are a treasure trove of information that agents are using to help uncover inventory, using AI to find owners who may be ready to list based on mortgage balance, length of ownership, and whether the property is owner-occupied.
Even smart thermostats like Google Nest use AI to learn your habits and make homes more energy-efficient, just one of many home features using AI to make a home more attractive to potential buyers.
The Bad: When AI Is a Tool For Fraud
What AI giveth, AI also taketh away. The same tech that streamlines sales and other real estate transactions can also be weaponized by scammers, and no one, from agents to their clients to mortgage and title professionals, is immune.
You’ve probably seen deepfake videos of celebrities or politicians, but what used to look like digital trickery now feels eerily real. In 2024, multiple fraud cases surfaced involving AI-generated voices and videos impersonating real estate agents. In several instances, buyers received emails or phone calls from someone who sounded exactly like their agent, guiding them to wire money to a fake account. The communications were slick, convincing, and completely fraudulent.
AI is also helping scammers fake property and title documents, forge signatures, and redirect private communications to capture sensitive information. Even the storied Graceland – GRACELAND! The famous home of ELVIS! – was the target of a brazen scam that required a court intervention to stop thieves from stealing the property out from under the Presley estate. These tactics are especially risky in rural and exurban regions where empty or unmonitored lots can be easy targets.
The final stretch of a sales transaction is where criminals are most likely to strike, with wire fraud being the most common tactic, as it takes advantage of buyers and sellers who may be seeing important but unfamiliar paperwork for the first time. AI-generated phishing emails targeting homebuyers just before closing will spoof the names of real estate agents, title companies, or lawyers offering “guidance” and instructing recipients to send their down payment or closing costs to a fake bank account.
Just last month at the REALTORS® Legislative Meetings held in Washington, DC, cryptocurrency and “pig butchering” – an ugly term that refers to criminals “fattening up” a mark before stealing their money – took center stage as agents shared their stories of being scammed… and the shame that accompanied being the target of this particular kind of increasingly common crime.
How To Stay One Step Ahead
Federally, the Automated Valuation Model rule improves protections for consumers in mortgage/appraisal contexts, but currently, none of our local jurisdictions have enacted AI laws specifically governing real estate transactions. Maryland House Bill 1331/”Consumer Protection – Artificial Intelligence” is working its way through the legislative process and aims to regulate the development and deployment of high-risk AI systems, ensure fair and equitable decision-making by AI systems (particularly in areas where they impact individuals’ lives), and focus on transparency, accountability, and risk mitigation.
Knowing that AI is now firmly entrenched in so much of our consumer activity is the first line of defense. Here are just a few tips to keep in mind:
- Ask your agent how they use AI. A good real estate professional in today’s market should be able to explain how they’re using (and securing) AI tools on your behalf.
- Always verify wire instructions in person or over the phone. Never rely solely on email. Use contact info you already have – don’t trust a new email or phone number without verifying.
- Check your property records regularly. If you own land or a second home, make sure your name is still on the deed.
- Be wary of “too good to be true” listings. Scammers use AI to generate fake rental or sale listings, often with eye-catching photos and below-market pricing. Cross-reference listings on multiple platforms and schedule in-person tours with a licensed agent.
- Secure your smart home devices. If you’re selling a home with connected tech (smart locks, cameras, etc.), reset to factory settings before transferring ownership. And never connect your smart devices to public Wi-Fi.
- Be cautious of AI-powered homebuying/selling apps that require sensitive financial info without strong encryption. Double-check for apps that look or sound similar to more established apps. Verify, verify, verify!
- Never respond to unsolicited texts, social media messages, or emails soliciting an investment. Be cautious when sharing personal information online, as scammers will exploit personal details to build trust.
- Report cybercrimes and suspicious online activity to the Internet Crime Complaint Center (IC3). The Internet Crime Complaint Center (IC3) is the central hub for reporting cyber-enabled crime. It is run by the FBI, the lead federal agency for investigating crime.
AI isn’t going anywhere, but neither is common sense. By staying informed, working with the trusted, professional agents at Corcoran McEnearney, and double-checking key details, you can harness the power and benefits of AI without becoming a cautionary tale.
Karisue Wyson
Karisue Wyson is the Director of Education for Corcoran McEnearney and was previously a Top Producing Realtor® in the Alexandria Office.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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Cannonball! Listings With Pools That Make a Splash
It’s heating up out there, and a refreshing dip in your own pool is the perfect way to cool down. If the sound of splashing water is what’s missing from your ideal backyard oasis, check out these cool listings from Corcoran McEnearney that feature pools and other water features.
And please invite us to your next pool party!
40959 Pacer Lane | Paeonian Springs, VA
This exceptional estate, sprawling across more than 14 acres of open land, offers a sanctuary of privacy and breathtaking natural beauty. The outdoor living spaces are designed for both grand entertaining and serene relaxation, starting with the expansive front porch. A 20-foot diameter stone fire pit, surrounded by a flagstone hardscape, creates an inviting ambiance for gatherings under the stars. A sparkling pool with built-in hot tub offers resort-style amenities, while covered & screened porches off the kitchen and first-floor primary suite provide seamless indoor-outdoor living.
Listed by: Ryan Clegg, Leesburg Office
1107 Savile Lane | McLean, VA
Recently featured for its outdoor kitchen on Inhabit, the Corcoran Blog, this spacious private estate will satisfy the most discerning buyer. Stunning 2020 whole-home renovation features modern design and high-end finishes. A refined and fully finished basement (including dressing rooms and a fully equipped kitchen) makes entertaining at the pool easy.
Listed by: Sandy McMaster, Alexandria Office
10052 Possum Hollow Drive | Delaplane, VA
Gap Run Farm is a beautifully maintained 50-acre country estate in the heart of Fauquier County. The thoughtfully designed main residence features more than 4,000 square feet of living space. Beautiful slate patios overlook the recently enhanced pool. A second 2-bedroom, 2-bath home provides comfortable accommodations for guests, extended family, or a farm manager. Perfect for the horse enthusiast, the property boasts an 8-stall center-aisle well-appointed barn, an outdoor arena overlooking the serene pond, and thoughtfully positioned turn-out paddocks with several run-in sheds and automatic waterers.
Listed by: Kerrie Jenkins, Middleburg Office
2506 Coulter Lane | Oakton, VA
This magnificent residence on 1.72 acres offers abundant space for relaxation and entertainment. More than 11,000 square feet of meticulously crafted living space extends to an outdoor oasis. The expansive patio area features a bar, outdoor grill area, and a tiered in-ground pool and spa, complete with a new heater, pump, and salination system for easy maintenance.
Listed by: Becky & Barb, Ashburn Office
2504 Sherwood Hall Lane | Alexandria, VA
Nestled behind a private gated entrance on over three-quarters of an acre, this remarkable estate offers unmatched privacy, luxury, and space to live, entertain, and relax. This outdoor oasis includes a large pool, relaxing hot tub, custom putting green, charming gazebo, and a fully-equipped tiki bar with an outdoor kitchen—ideal for hosting unforgettable gatherings.
Listed by: Rebecca McCullough, Alexandria Office
2030 Huntwood Drive | Gambrills, MD
This lifestyle property is the perfect private retreat. Location, presence, design, comfort, and appointments combine beautifully to create a haven of peace and privacy, less than 10 miles from downtown Annapolis.
Listed by: Sandy Chee, McLean Office
6320 Crosswoods Circle | Falls Church, VA
We know it’s not a pool, but Lake Barcroft is one of the area’s most sought-after lake communities with 5 sandy beaches, kayaking, sailing, canoeing, swimming, fishing, and more. This 5-bedroom waterfront home is just the spot to enjoy life on the lake to the fullest. Fabulous views from the home, deck, and two paver patios—one with a fire pit. Pathways with handsome stone steps lead to the boardwalk and dock. Oh, and the pontoon boat conveys!
Listed by: Susan Tull O’Reilly, McLean Office
If a home with a pool has been on your wish list, your Corcoran McEnearney agent will not only help you find those listings but will also be a great resource for recommending contractors and service professionals to maintain your splashy investment. Dive in and reach out today before the next heat wave hits!
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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Where is the Housing Market Headed?
Everyone is talking about the market, but what is the market actually telling us?
A steady stream of spring market data is signaling a shift toward balance in the DC metro housing market, with homes staying on the market longer and buyers increasingly approaching a home purchase with negotiation in mind.
Despite record-high home prices in the DC metro area, May 2025 showed a modest rebound in contract activity across several jurisdictions. However, the broader year-to-date trend remains slightly down. We’re seeing modest week-over-week growth in the number of newly ratified – but that growth is very unevenly distributed.
- Northern Virginia led the way with a 9.9% year-over-year increase in May contracts, followed by Montgomery County (up 5.2%) and the District (up 4.0%).
- Loudoun County (up 0.8%) and the Virginia Countryside (down 0.4%) saw smaller changes, while Prince George’s County posted a slight 0.2% dip.
- However, most areas are still trailing slightly behind 2024 levels for the first five months of the year, with contract activity down between 0.4% and 10.2%.
Homes are also taking longer to sell: average days on market rose across the region, ranging from 23 days in Northern Virginia and Loudoun County to 55 days in the District. Together, these indicators reflect a market adjusting toward balance, where motivated sellers must work to stand out, and buyers may find emerging opportunities.
Whether you’re on the market to buy or sell, or thinking about jumping in, here’s what to keep in mind.
If Your Home Is Listed
Compared to last May, the number of homes on the market has risen significantly in every jurisdiction, and this is absolutely a market where “price matters and time kills.” Even though contract activity was very stable compared to last May, that rising inventory pushed down absorption rates – the rate at which available properties go under contract within that month – pretty much across the board.
Home prices are still strong, more than half of homes are selling at or above list, and in most local jurisdictions, the absorption rates are above the 30% threshold for a “Sellers Market.” But absorption rates are tracking lower by the month, not just year over year. Some tips if you currently have a “For Sale” sign on your home right now:
- Be Competitive When Pricing: Be realistic given current conditions and get familiar with the factors that are influencing your neighborhood, and watch for signs in other comparable areas that things are selling more quickly or slowly than your home. Smart sellers know this is not the time to “test the market” and push the envelope on peak pricing.
- Consider Strategic Staging & Renovations: The first showing is your home’s audition, and you may not get the chance at a callback. Make sure your home is perfectly presented from the minute a buyer pulls up and that a tour reinforces that the home is show-ready. Offers with home inspection contingencies are more common now, especially if buyers are paying top-dollar (they want to know what they’re getting!) Making sure your listing is sound in structure and appointed with the modern conveniences that buyers flock to will ensure it stands out from an increasingly crowded field of options. Allowing pre-offer inspections will also keep serious buyers engaged and moving toward a clean offer.
- Flexible Financial Incentives: With prices and mortgage rates still in the upper ranges, entice buyers with concessions like rate buydowns (which 37% of new construction builders are using) and other sweeteners like paying their agent’s compensation or offering money towards closing costs.
- Targeted marketing: Work with your agent to emphasize neighborhood strengths and include a list of great features and resources that can be found in the area. Don’t assume buyers have time to do the local research that you’ve accumulated over the years. Brag about what makes your home in that neighborhood such a great place to live!
If You’re In the Market To Buy
- Opportunity window: Prices stabilizing (or not increasing as rapidly), and more inventory is giving buyers the best shot in a long time for negotiating leverage. With more choices and fewer bidding wars, buyers can negotiate better, and smart sellers on a tight timeframe may be willing to negotiate on everything from buyer concessions to price reductions.
- Mortgage rate plateau: Mortgage rates have steadied at just under 7%, with recent retreat into the mid‑6% range (around 6.84–6.85%). While still elevated, this plateau signals some relief and suggests rates may remain fairly stable or ease modestly as inflation cools.
- Be prepared: Readiness is critical – having your pre‑approval in hand, being flexible on timelines when possible, and taking swift action when you find a home can mean the difference between winning a deal or watching it slip away.
- Get Creative with Financing Fixer-Uppers: Sometimes that “Dream Home” is actually a work in progress. If you have the vision to take a home that needs some TLC to make it your own, remodeling and investment loans – like a VA Renovation Loan, FHA 203(k) or Fannie Mae’s HomeStyle – can help you finance both the purchase and the renovation in one package.
Looking Ahead
Timing the market when buying or selling a home is difficult because real estate is influenced by many unpredictable factors – interest rates, inventory levels, economic shifts, and even seasonal trends. By the time a trend is clear, it’s often already reflected in prices or competition. Trying to “wait for the perfect moment” can mean missing real opportunities that align with your needs, rather than the market’s.
Sellers, make sure to adjust your pricing in response to the market – three weeks without an offer is probably an indication that you’re off the market and need to reevaluate either your pricing, your home’s condition, your marketing efforts… or all three. Buyers, this is a great opportunity to come off the sidelines and engage intentionally and smartly with motivated sellers to secure your spot on the path to homeownership.
Incoming insight suggests a turning tide: Sellers who price smart and stage carefully will still succeed, while buyers who come armed with preparation can capitalize on enhanced bargaining power.
Read more housing analysis in our Market in a Minute and Weekly Meter, and connect with one of our agents to find the best strategy to sell or buy your home!
Karisue Wyson
Karisue Wyson is the Director of Education for Corcoran McEnearney and was previously a Top Producing Realtor® in the Alexandria Office.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
Don’t miss a post! Get the latest local guides and neighborhood news straight to your inbox!
Dream It, Fix It, Love It: Renovate with a VA Loan
June is for fresh starts, including home renovations.
As the days get longer and the weather warms up, June sparks a sense of renewal. It’s the perfect time to tackle projects that have been sitting on the back burner, especially when it comes to upgrading your living space. If you’re a Veteran or active-duty service member, there’s one option that might surprise you: the VA Renovation Loan.
Whether you’re buying a new home that needs some work or looking to refresh the one you already own, this program could be the key to making it happen with little to no upfront cost.
What are the benefits of a VA Loan program?
The VA loan benefit is earned through military service and is one very advantageous way that military personnel can buy, build, or improve a home. A few reasons that VA loans are a great option for qualified buyers and current homeowners:
- No down payment as long as the sales price isn’t higher than the home’s appraised value (the value set for the home after an expert reviews the property).
- Better terms and interest rates than other loans from private banks, mortgage companies, or credit unions (also called lenders).
- The ability to borrow up to the Fannie Mae/Freddie Mac conforming loan limit on a no-down-payment loan in most areas—and more in some high-cost counties. You can borrow more than this amount if you want to make a down payment. Learn more about VA loan limits here.
- No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP).
- No penalty fee if you pay the loan off early.
What is the VA Renovation Loan?
The VA Renovation Loan lets eligible borrowers roll the cost of home improvements directly into their mortgage, without needing a second loan or draining their savings. It’s designed specifically for primary residences and offers up to 100% financing, making it one of the most accessible ways to upgrade a home.
For example, maybe you want to modernize your kitchen, replace outdated flooring, or add accessibility features to suit your needs. As long as the repairs are non-structural and can be completed within 75 days of loan funding, they may be covered.
What can you use it for?
Eligible renovations include everything from new appliances and updated HVAC systems to roof replacements, plumbing work, bathroom remodels, and more. The loan is flexible enough to support both cosmetic improvements and essential repairs. In short, if the work makes the home more livable, efficient, or functional, there’s a good chance it’s allowed.
Who can apply?
This program is available to active-duty service members, Veterans, Reservists, National Guard members, and certain surviving spouses. If you’ve served our country, this is one way your benefits can serve you—helping you build a better home with a smarter financial strategy.
Not a VA Borrower? You’ve still got options!
Even if you don’t qualify for the VA Renovation Loan, June is still a great time to explore other renovation financing options:
- FHA 203(k) Loans – These are perfect for homebuyers or homeowners looking to finance repairs and upgrades. The “Standard” version allows for structural changes and phased construction, while the “Limited” version is ideal for smaller, cosmetic projects.
- Fannie Mae HomeStyle® Renovation – A conventional loan that covers a wide range of upgrades, including landscaping, green energy improvements, and accessory dwelling units (ADUs)
- Freddie Mac CHOICERenovation® – Similar to the HomeStyle loan, this option is designed for buyers who want to customize or modernize their home purchase while keeping everything under one convenient mortgage.
Why June is the ideal time to start?
With summer break in full swing and longer daylight hours, June offers the perfect window to start a renovation project—especially one that can be completed before fall routines pick back up. Contractors may be more available, and renovation financing can give you the boost you need without delaying your goals or draining your savings.
If you’re thinking about buying a home that needs a little work or you’re ready to tackle that dream upgrade, this might be your moment. Ready to explore your options? Reach out today and take the first step toward making it happen.
Bill Stern | The Stern Team
Branch Manager | NMLS ID # 267577
CMG Home Loans | NMLS ID# 1820
M: 540-222-0164
bstern@cmghomeloans.com
Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
Don’t miss a post! Get the latest local guides and neighborhood news straight to your inbox!
Financing Investment Properties May be Easier Than You Think
You don’t have to be a financial whiz to make smart moves in real estate investing.
Owning residential investment property in the Washington Metropolitan area provides multiple advantages: steady cash flow, solid appreciation, and a hedge against inflation. Rental properties, which command a high enough monthly rent to cover a mortgage payment, may be viewed similarly to a blue-chip stock where the monthly principal curtailment is akin to a regular dividend payment. And while a stock can theoretically lose all of its value, “dirt does not go to zero.”
For some, acquiring residential investment property is a function of converting an existing primary residence into one that brings cash flow. For others, the acquisition requires purchasing property and obtaining financing for that purchase. The good news is that underwriting guidelines for residential investment financing have loosened in recent years, and Fannie Mae and Freddie Mac investment property loans no longer require down payments of 20%. A purchaser may put down as little as 15% of the purchase price, making the acquisition more attainable for some. If the down payment is less than 20% then mortgage insurance is required, which increases the monthly payment. Interest rates are more favorable if the down payment is at least 20%, and even more so if the down payment is at least 25%. Note that investment property loans do not allow for the use of gift funds to cover down payment, closing costs or reserve requirements.
For most individuals, qualifying for an investment property loan from an income and debt standpoint has also become easier. Lenders will generally use 75% of the expected rental income to offset the proposed mortgage payment. For instance, if the proposed mortgage payment on an investment property purchase is $3000 per month and the anticipated rent as determined by the lender’s appraiser is also $3000 per month, in most cases, the lender will give the mortgage applicant credit for $2250 (75% of anticipated rent) to offset the new monthly payment. This results in a new debt for qualifying purposes of only $750 per month. Standard conforming conventional loans do not require a lease to be in place for the property to be purchased and borrowers do not need to show a history of managing rental property.
Investment property loans do require the borrower to show reserve assets in the form of savings, brokerage, or retirement assets. The guidelines differ somewhat between Fannie Mae and Freddie Mac loans; Fannie requires reserve assets calculated as a percentage of the unpaid balances on all real estate loans held by the borrower, while Freddie requires a certain number of months of principal, interest, taxes, insurance, and HOA/Condo dues (PITIA) for all financed property held by the borrower. Neither set of guidelines is too onerous as Fannie requires reserves to be as little as 2% of outstanding balances on all mortgages held and Freddie requires as little as 2 months of PITIA on all properties owned and encumbered by mortgages.
The borrower’s application process for investment property loans is identical to that for a loan to purchase a primary residence, and there is no significant additional time needed by the lender to complete the underwriting process. The lender’s appraisal of the property will include one additional component referred to as a comparable rent schedule, which is used to determine the likely gross monthly rental income of the property. Other than that, the overall lender process and documentation requirements of the borrower are no different than for other residential loan applications. A borrower can ratify a contract for an investment property purchase and proceed to settlement just as quickly as they could for the purchase of a primary residence.
Ownership of residential investment property does not require advanced financial education and financing the purchase of residential investment property is generally just as easy as financing a primary residence.
Brian Bonnet, SVP, Sr. Loan Officer, NMLS ID 224811
Atlantic Coast Mortgage, NMLS ID 643114
O: 703-766-6702 | M: 703-304-0188
Email Me
Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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Spring 2025 Selling Trends: Inventory Is Up, Pricing Is Crucial
Data is coming in from the start of the spring selling market. Inventory is up, but it’s still a seller’s market … if the price is right.
Now that we are in the thick of the spring market, let’s look at which sellers are succeeding and which are still waiting for their buyers. And if you’re a seller getting ready to come to market, heed the warning: price matters and time kills.
General Takeaways
Compared to March 2024, there has been a noticeable cooling of the market. Homes in general are taking a little longer to sell and aren’t selling as close to their original list price. But the differences aren’t huge – about 1% less and about 5 days longer.
Inventory is also influencing the statistical story. In every jurisdiction, the number of homes on the market at the end of March 2025 was up considerably from March of last year. An example: Northern Virginia inventory is 69% higher than it was this time last year. But, again, it’s a matter of context. Despite the big percentage increases, inventory in most areas is still well below the “normal” levels we saw pre-COVID. Overall supply in most of the suburban markets is still less than 1.5 months. DC stands at 4 months.
The biggest difference in most areas we track are the average days on market for the “eventually successful sellers” – those who sold at a net sales price less than their original list price. Compared to last March, those sellers are typically taking 20 days to as much as 40 days longer to sell than a year ago.
Even with the increase in inventory, absorption rates – the number of homes that are sold in a specified month in comparison to those still on the market – are still north of the 30% threshold for a “seller’s market” almost everywhere in the Greater DC/Baltimore Metroplex. The exceptions are all three property types in DC itself, and condos in Baltimore City – those reflect a balanced market.
Given the uncertainty in the economy, the market is holding up well. And as always, the specifics change when looking at more granular geographic, property type and price range data. For example, even though the overall condo absorption rate in Arlington County was 34% in March, it was 58% in Shirlington/Fairlington and 20% in Crystal City. Those differences really matter to a seller when making the final decision with an agent about what price to list a property.
It’s still a seller’s market throughout most of the region, but, in general, sellers don’t have as much leverage as they’ve had in the most recent past. Missing the market hurts, and waiting for a price to get aligned with the trends of the market hurts even more. Just ask the “Eventual Sellers” shown in the charts below, the majority of whom sold below their original list price and sat on the market upwards of two months longer than the “Very Successful Sellers.”
List Price Matters
Source: BrightMLS
Plan for Success
What can a seller do to ensure they land in the “Highly Successful” camp? The first step is to work with a licensed Realtor® who will provide local market insight and guide your pricing strategy. The second is to prepare your home to attract the most qualified buyers: fix, remodel, and paint for the best first impression, and consider offering credits for buyers.
Finally, have a plan to make a pricing adjustment if the home hasn’t sold within 21 days, which appears to be the local “tipping point” when sales prices drop. Most experts agree that a listing that is 30 days on market without an offer is likely 3-5% overpriced. Be ready to make a pricing decision that keeps you within a competitive time-and-pricing window that keeps buyers interested.
Read more housing analysis in our Market in a Minute and Weekly Meter, and connect with one of our agents to find the best strategy to very successfully sell your home!
Karisue Wyson
Karisue Wyson is the Director of Education for Corcoran McEnearney and was previously a Top Producer Realtor® in the Alexandria Office.
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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Let’s Get Moving! Expert Tips To Smooth the Journey Home
THE Team from Town & Country Movers joins us this week for tips on a smooth move.
Moving can be the most stressful part of buying or selling a home, but it doesn’t have to be.
The spring market is one of the busiest times for everyone associated with real estate, with Realtors® and their clients managing many different aspects of a sale or rental and interacting with many different vendors along the way. And given that the typical homeowner stays in their property for about 12 years, it’s not unusual to have questions about how to prepare for a major but infrequent life event: moving.
At Town & Country Movers, we understand the stress that comes with relocating and we believe that a smooth and stress-free move starts with a plan and the right team to help you get things moving. We’re a local, family-owned business that has been providing clients concierge-level service throughout DC, Maryland, and Virginia since 1977 and we’ve learned a lot over the years about the best strategies to get folks settled into their new homes.
If you’re planning a move to a new home either locally or out of the region, here’s what to think about as you vet and choose the professional moving company that’s right for you.
Local Moving: How to Select a Mover
From a couple of local college kids with a truck to nationally-recognized brands, you have many options for who will handle your move so it’s important to know what to look for as you’re researching moving companies. Start first with their experience and expertise:
- Are the crews full-time, professional movers? You’ll want to know that they have dedicated personnel who have had background checks, and who will arrive on time and fully staffed so not a minute is wasted in getting your household packed up. Find out if there is a point-person on site that you can communicate with to ensure all logistics are covered.
- Are they experienced in moving specialty items? If you have an impressive art collection, uniquely-sized furniture, or large items like a piano, make sure you choose a mover who has the right equipment to deliver these items safely.
- Do they offer packing assistance? This is time-consuming work and requires extraordinary care to ensure your goods are delivered safely to their destination. Save yourself time by choosing a mover who includes packing assistance in their services, at the very least for your breakable items. It will be money well spent!
Speaking of money well-spent, ask how your mover about their fees and how they are paid:
- Is a deposit required? Clarify upfront whether the company requires a deposit before the move, and if so, what their payment terms are. Legitimate movers will provide you with a clear, written estimate, which includes the total cost and any upfront deposit required.
- What is the pricing structure? Do they charge by weight, distance, time, materials, or is it a flat fee? Get a breakdown of all potential charges so that you aren’t surprised by additional fees like disassembling/assembling furniture, using stairs, or specialized handling.
- What forms of payment do they take? Reputable movers will be set up for credit card payments, but some may offer discounts for cash. Remember that some moving expenses are tax-deductible so you’ll want to get receipts for all payments.
And while experienced movers will take every precaution to ensure the careful handling of goods, accidents happen. Find out early what the company will do to compensate you if the worst-case scenario happens:
- What happens if there’s damage? Ensure that the moving company has liability coverage and clear policies for handling any potential damages to your belongings during transit. Movers may also provide you with worksheets to help you value your items for insurance purposes. This guide from the Department of Transportation offers statistics and other tips to keep in mind.
Long-Distance Moving: What You Need to Know
In addition to all the questions listed above, a long-distance move requires a bit more investigation and logistics. Here’s what to consider:
- Does the company manage your move from start to finish? Ask if the company provides end-to-end service, or if your belongings will be transferred to a different company or a different truck during the move.
- What are the delivery terms? Understand when and how your belongings will be delivered. Will your items arrive in one trip, or will they be stored temporarily at a facility?
- Who assists on delivery? Ensure that the company uses trained, professional movers at the delivery location. It’s also important that any movers assisting with the unloading have had background checks for your safety and peace of mind.
- How is the long-distance move priced? Long-distance movers may charge based on weight, distance, and packing requirements so get a clear estimate based on the specifics of your move.
- Will you have a single point of contact throughout the move? A moving company with a dedicated point of contact makes communication easier and ensures you’re always in the loop.
Why Choose THE Team, Town & Country Movers?
At Town & Country Movers, we believe in providing concierge-level service that makes your move as easy and stress-free as possible. Our team is composed of three women with nearly 35 years of combined experience in the moving industry. We pride ourselves on offering one point of contact from the very first call to the final unloading of your belongings.
Amy, Sarah, and Errin
Town & Country Movers, Inc.
703-216-1977 direct
THETeam@townandcountrymovers.com
Visit corcoranmce.com to search listings for sale in Washington, D.C., Maryland, Virginia, and West Virginia.
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