Compass has released its October 2025 National Market Insights Report, offering a deep look at housing trends shaping the national real estate landscape. From shifting interest rates to changing buyer dynamics, the data provides valuable perspective as we approach year-end. 

Here’s a snapshot of what’s happening across the U.S. housing market—and what it could mean for buyers and sellers in our area.

Interest Rates at Their Lowest in Over a Year

Mortgage rates dropped to 6.19% in late October, the lowest level since early 2024. This is a welcome change from the highs above 7% we saw earlier this year. If rates continue on this path, it could open the door for more buyers this winter and early 2026.

Source: Compass Real Estate Blog: October Market Roundup

Prices Steady, But Growth Has Slowed

Median home prices held relatively firm through September, though the pace of growth has eased.

• Single-family homes: Up 2.3% year-over-year
• Condos/co-ops: Down slightly by 0.6%

This leveling reflects a more balanced market—less frenzy than 2021–2023, but continued strength thanks to limited inventory and stable buyer demand.

Fewer New Listings Coming to Market

The number of new listings in September was down 1% year-over-year, continuing a soft trend in seller activity. Many homeowners remain hesitant to list, holding on to low mortgage rates. That said, inventory levels are still higher than they’ve been since 2019, providing some relief for active buyers.

Inventory Remains Tight, Especially for Houses

The number of active listings has stayed roughly flat since midsummer—up 17% compared to last year, but the growth is concentrated in condos and co-ops.

• Months-Supply-of-Inventory (MSI): 4.4 months for single-family homes
• MSI for condos/co-ops: 6.6 months

That means the market is slowly balancing, but desirable homes are still moving fast.

Sales Dip Seasonally but Remain Strong Year-Over-Year

Sales volume fell 5.1% from August, following the usual fall slowdown, but remained 8.2% higher than last year—making it the strongest September since 2022.
As interest rates ease, expect to see a pickup in contract activity through November and December.

Luxury Buyers and Cash Purchases Driving Activity

The upper end of the market continues to show remarkable resilience:

• Homes over $1 million saw a 20% increase in sales year-over-year.
• Over half of homes above $2 million sold all-cash, according to Compass data.

This reflects the strength of affluent buyers—many leveraging stock market gains and cash liquidity rather than financing.

Fewer Price Reductions and Rising Ownership Costs

Roughly 1 in 5 active listings had a price reduction in September, nearly identical to 2024. That’s a sign of normalization rather than a market cooldown. However, homeowner insurance premiums continue to rise across most states, especially in areas impacted by weather risks.

These higher costs are worth factoring into affordability planning—particularly for buyers in coastal or older housing markets.

The Takeaway: A Calmer, More Balanced Market Ahead

Overall, the data points to a steady, cooling, but still competitive market heading into the holidays. Lower interest rates are a positive signal for buyers, while low inventory continues to support home values for sellers.

For both sides, success in this market comes down to strategy, preparation, and timing—and that’s where having an experienced team matters most.

At The Goodhart Group, we continue to monitor these national trends alongside local data here in the Alexandria, DC, and Northern Virginia markets. If you’re thinking about making a move—or just want to understand how the current market may affect your plans—our team is happy to help you chart the smartest path forward.

Ready to Talk About Your Next Move?

The Goodhart Group has helped DC-area families buy and sell homes for more than 30 years. Whether you’re planning a move soon or just exploring your options, our team is here to guide you with clarity, confidence, and care.

Get in touch by filling out the form below or reaching out by phone or email.

Sue Goodhart | sue@thegoodhartgroup.com | 703-362-3221

Allison Goodhart DuShuttle | allison@thegoodhartgroup.com | 703-266-7277

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