Lots of noise about the DC real estate market recently in respect to how it has been
affected by changes to the federal workforce. Overall, about 20% of federal
employees work and live in DC and much of the local population overall seems to be
impacted in some way by the current state of affairs. Thinking of those of you who are
affected directly.
Historically, the DC market has been remarkably resilient and almost recession-proof
due to the government's role in out local economy. Fair to wonder if the latest
developments could cause disruptions.
Specifically on the real estate front, it's been mixed messaging if you aren't closely
following the data on a regular basis. Reports of a mass surge of active listings hitting
the market made their rounds after workplace reductions were announced, though
the numbers seemed to indicate otherwise for February. In fact, the number of new
listings in the DC area was actually lower, (-2.6%), than last year during that time. The
numbers did increase from January and have continued a bit over the past couple
weeks, though that would also be consistent with the Spring Market trends. At the
moment, it's a bit too soon to draw any conclusions.
Some shift within the market overall could occur at some point in the months ahead
but as is the case in every cycle, time will tell. In many situations homes are still selling
with competitive offers. If you're in the market for a condo, inventory is just about at
pre-pandemic numbers for the first time. While overall, some buyers have pulled back
a bit, others have entered or reentered the market. Some return-to-work orders have
contributed to this directly. Other sellers are now even moving up their timeline
instead of waiting for the Fall. On the mortgage front, applications have increased for
the first half of March, coinciding with recent slight decreases in rates.
All this to say the market continues to move along and that everyone's situation is
different. Reach out anytime if I can be a valuable resource as we navigate and
monitor the market for your needs.
DC Metro Area Monthly Market Update
February showed increases from January in most areas that are consistent with spring
market seasonality, though activity was lower compared to last year almost
exclusively across the board in major categories. New pending sales in particular were
down almost 10%, and new inventory was down -2.6% ( or 4,210 units). This caused
active inventory on the market to increase by +13.3% from January, and 30% from last
year. Through it all, value has held as evidenced by a median sale price increase of
6.6% from last year, and 6.9% from January.
For the full report, click below.
DC Metro Area February Full Report
Monthly Regional Market Data Reports
Comprehensive reports available available upon direct request or by signing up
If you or someone you know has any real estate questions or would like to have a
private conversation about listing your home for sale or the buying process, reach
out directly anytime for assistance.
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