DC Housing Market Shows Signs of Cracks AMID MASS Federal Layoffs

The supply of homes for sale access the nation always shows ahead of the busy spring market, but the washington, DC, metropolitan area is seeing an outsized increding, According to realtor.com.

Inventory gains in the region, which include the District as well as Maryland and Virginia Suburbs, Began to Accelerate in January and February, Up 35.9% and 41% Year-Ever-Eear, Respectly. Inventory in the area from june to december had alredy been 20% to 30% higher than the previous year, but the increases accelerated even intelligent in recent months.

As of last week, active listings were up 56% compared with the same week one year ago.

“The adjustment period following federal layoffs and funding cuts have likely put some Washington Dc Home Searches on Hold, Both for that for that without Concerned about what’s ahead, and the data hints at these challenges, “Wrote Danielle Hale, Chief Economist for realtor.com in a release.

For comparison, active listings nationally was up 28% last week compared with the same week in 2024, according to realtor.com, coinciding with a decline in MORTGAGEGAGEGAGEGAGEGAGEGAGEGAGATEs. The average rate on the popular 30-year fixed loan was around 7.25% in mid-january but fell steadily to now 6.82%, according to mortgage news daily.

The inventory gains in the DC are not all due to pople putting their homes on the market. New Listings Rose, but by Much Less Than Overall Inventory, So the Increase in Overall Supply is a Combination of New Listings and Slowing Buyer Activity.

New Listings were 24% Higher Year-Over-Year Last Week, Contributing to the Increase in for-Sale Inventory and Droping Median Days on Market, realtor.com found. New Listings Year-to-Date Are 11.9% Above The Year -Go Level, but still 12.8% below where they were in 2022, according to hale.

There also may be an outsized bump in inventory due to newly Built Condominums and Townhomes coming on the market now. Construction in the DC Area has been very active in the last few years. The share of new construction lists are tilted much more Toward condos than it was five years ago.

As for prisles, the media list price in the DC Metro Area Was Down 1.6% Year-Over-Year Last Week. For context, in the fourth quality of last year, that media list price was down 1.5% annual.

The media list price nationally, as of last week, was down 0.2%, Thought is Heavily skewed by the type of home for sale. Controlling for the size of home, the median list price per square foot increasing by 1.2% annual, which means that there are more smaller or lower-end homes on the market compared to last rain.

“While dc has the largest share of federal workers in the country, other highly fedly federally employed markets count see similar shifts in the coming weeks or months,” Said Hale. “While I Expect Many Households will choose in the area in the area and Pivot to find new job options, some will likely choose to leave and reti or find a job elesewhere.”