Anonymous wrote:Underpriced given coming tariffs.

How would the tariffs make housing underpriced? The tariffs are likely to drive the economy into recession. Not typically good for home values.

I'm a homeowner in D.C. and have no plans to move any time soon — which is to say, I'd be perfectly happy if prices only keep going up — but a lot of people in this thread seem seriously delusional about the housing market. There's no way it's true that home prices will only ever go up.

Weirdly enough I’ve seen prices go down in some places.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:


DC is becoming less of an anomaly as far as the economy goes. Especially this year.


What do you mean? DC is a bustling capital city, and usually has rising housing prices in anything but a recession (local, national, or international). It is not an anomaly. Every capital (or major) city is like this.

RTO is probably a short term trend. Long term people will most likely be able to WFH. We have these things called computers and the internet. There is no real need to be at a physical office all of the time in order to accomplish work tasks. Plus traffic is terrible and roads are expensive. Companies are offering WFH in order to attract top talent. As the federal government pays less and benefits are in decline, WFH will be a way they can attract workers (if they can attract workers at all). I just don't see how DC is a bustling city, especially if contract work is also cut.

To be fair, even private companies are doing RTO a lot now.

DP. There are very, very few private companies that have five day a week in office requirements. I can’t even think of one. Even being able to WFH one day a week influences housing choices.

Perhaps, but do as you please with this article.

https://www.wsj.com/economy/housing/home-sales-march-2025-drop-mortage-rates-1f9a6047

My townhouse neighborhood has homes for sale sitting. Rates are really high right now

Underpriced given coming tariffs.

A realtor has found the chat.

Anonymous wrote:

Anonymous wrote:


We are going into a recession. So, yes, we are in a housing bubble right now.


No, we are not. There is no such thing as a bubble in an around a capital city. In a recession like the one we had in 2008, prices stagnate in some places, decrease in iffy neighborhoods and those that are further out, and continue to rise, but not as quickly, is desirable close-in neighborhoods (with the good public schools, because some young families who might have put their kids in private decide to do public instead). Before and after a recession, real estate prices rise everywhere. There are many more years of non-recession than there are years of recession, so when you step back and look at a timeline over decades, you only see slight dips within a continuously rising price line. Do not make the mistake of characterizing the periods before each dip as a "bubble", because that term implies a one-time short-lived increase unsupported by fundamentals. It's never that! Real estate prices increase naturally over time.

You can define a "bubble" however you want. Maybe the title of the thread should be "is there going to be a dip in housing prices?"

Given the tariffs and government downsizing efforts, I would think we are going to see a dip in that continuous line that you are talking about. I think that is what the thread question is about. I think people wonder about a dip and how long the dip might last. There is some instability right now.

PP you replied to. Words matter! A bubble burst does not equal a dip, for the reasons I explained above.

I agree that further out suburbs will see a softening of the market. DC and close-in suburbs of VA and MD, hmm... not right now. The current problem isn't recession (because there's isn't one right now), but deep uncertainty. People don't know whether they're coming or going. So I think it's more of a market freeze that we're seeing. Only the people who need to move are moving. If this administration continues on its suicidal mission to explode the global economy, then next year's spring market is going to crash, which isn't good for 99% of buyers, since these buyers will be out of jobs or financially stressed in other ways. If there's a gradual government spending course correction and easements on the worst of the tariffs, which I expect, because not even the crazies want to be blamed for the worst recession in living memory, then we might not see much, if any, consequence on the DC real estate market.

The economy is still doing very well, and as long as that is the case, housing prices will increase. It may reverse soon, but no one can predict the future.

Yes, I think we’re going to see something like the 2008 housing bubble burst soon.

Anonymous wrote:I hear differing opinions. however, it seems at a glance we are. In 6 years a 460k home has turned into a 515k home, or a 650k home a 775k home, what do you guys think?

Well yeah.
The question is when does it crash. Nobody knows.

China and China back corporations like Blackrock and Vanguard, buying up property is driving the cost up artificially.

Anonymous wrote:


We are going into a recession. So, yes, we are in a housing bubble right now.


No, we are not. There is no such thing as a bubble in an around a capital city. In a recession like the one we had in 2008, prices stagnate in some places, decrease in iffy neighborhoods and those that are further out, and continue to rise, but not as quickly, is desirable close-in neighborhoods (with the good public schools, because some young families who might have put their kids in private decide to do public instead). Before and after a recession, real estate prices rise everywhere. There are many more years of non-recession than there are years of recession, so when you step back and look at a timeline over decades, you only see slight dips within a continuously rising price line. Do not make the mistake of characterizing the periods before each dip as a "bubble", because that term implies a one-time short-lived increase unsupported by fundamentals. It's never that! Real estate prices increase naturally over time.

You can define a "bubble" however you want. Maybe the title of the thread should be "is there going to be a dip in housing prices?"

Given the tariffs and government downsizing efforts, I would think we are going to see a dip in that continuous line that you are talking about. I think that is what the thread question is about. I think people wonder about a dip and how long the dip might last. There is some instability right now.

Anonymous wrote:

Anonymous wrote:


DC is becoming less of an anomaly as far as the economy goes. Especially this year.


What do you mean? DC is a bustling capital city, and usually has rising housing prices in anything but a recession (local, national, or international). It is not an anomaly. Every capital (or major) city is like this.

We are going into a recession. So, yes, we are in a housing bubble right now.

No, we are not. There is no such thing as a bubble in an around a capital city. In a recession like the one we had in 2008, prices stagnate in some places, decrease in iffy neighborhoods and those that are further out, and continue to rise, but not as quickly, is desirable close-in neighborhoods (with the good public schools, because some young families who might have put their kids in private decide to do public instead). Before and after a recession, real estate prices rise everywhere. There are many more years of non-recession than there are years of recession, so when you step back and look at a timeline over decades, you only see slight dips within a continuously rising price line. Do not make the mistake of characterizing the periods before each dip as a "bubble", because that term implies a one-time short-lived increase unsupported by fundamentals. It's never that! Real estate prices increase naturally over time.

Anonymous wrote:No. I don't know why this myth is so persistent.

Real estate prices in and around metropoles all over the world, barring Act of God / force majeure, will never go down. Even in the 2008 recession, prices around DC either stagnated, or if they went down, didn't go down for long.

I've been on DCUM for more than 15 years. Every year, hopeful and ignorant posters ask this question. The answer is no for DC and inner suburbs.

If you're in the outer suburbs, on the other hand, yes, you will see greater fluctuations tied to the health of the economy.

Because people like throwing the word "bubble" around without understanding it.