The supply of homes for sale nationwide has always risen ahead of the busy spring market, but Washington, DC metropolitan areas have risen significantly, according to Realtor.com.
Inventory profits for the region, including the district, Maryland and Virginia suburbs, began to increase by 35.9% and 41% year-on-year in January and February, respectively. Regional inventory from June to December was already 20% to 30% higher than the previous year, but the increase has accelerated even further in recent months.
As of last week, the active list had increased by 56% compared to the same week a year ago.
“The adjustment period following federal layoffs and cuts in funding could potentially put a pending home search in Washington, DC, suggesting these challenges with those whose work has been directly affected and those worried about future challenges,” writes Danielle Hale, Chief Economist at Realtor.com.
For comparison, according to Realtor.com, the nationally aggressive list rose 28% compared to the same week in 2024, consistent with a decline in mortgage rates. According to Mortgage News Daily, the average rate for the popular 30-year fixed loans was around 7.25% in mid-January, but now it has steadily declined to 6.82%.
This photo, taken on February 14, 2023, shows a home for sale in Washington, DC.
Aaron Schwartz | Press during the Xinhua Conference | Getty Images
The acquisition of stock in the DC area is not because people are putting their homes on the market. The new list has risen, but is much less than overall inventory, so the overall increase in supply is a combination of a new list and slower buyer activity.
The new listing has increased 24% year-on-year last week, contributing to an increase in sales inventory and a decline in the median market, Realtor.com found. According to Hale, the new annual list is 11.9% above the 12+ level per year, but 12.8% below the 12.8% in 2022.
Also, there may be large bumps in stock as newly constructed apartments and townhomes are currently on the market. Construction in the DC area has become very active over the past few years. The share of the new construction list is leaning far more towards condominiums than it was five years ago.
Regarding prices, the median price for the DC Metro area fell 1.6% year-on-year. In the context, its median price fell by 1.5% per year in the fourth quarter of last year.
As of last week, the median national prices fell by 0.2%, but it is heavily skewed to the type of house for sale. Controlling the size of the house, the median price per square foot increased by 1.2% per year. That means there are smaller or lower homes in the market compared to last year.
“D.C. has the largest share of federal workers in the country, but other highly employed markets could see similar changes in the coming weeks or months,” Hale said. “We expect many households to stay in the area and choose to pivot to find new employment opportunities, but others may choose to leave elsewhere and retire or find a job.”
