Realtor.com says supply of homes for sale across the country always rises before the busy spring market, but supply in Washington, D.C., metropolitan areas has increased significantly.
The region’s inventory earnings (including the region and suburbs of Maryland and Virginia) began to accelerate in January and February, up 35.9% and 41% respectively. From June to December, inventory in the region has been 20% to 30% higher than the previous year, but the increase in recent months has accelerated further.
As of last week, positive listings grew by 56% compared to the same week a year ago.
“The adjustment period after federal layoffs and cuts in financing is likely to suspend some household searches in Washington, D.C., both a direct impact job and those who may be focusing on future situations, and the data suggests these challenges,” Realtor.com chief economist Danielle Hale wrote in a press release.
By comparison, active listings nationwide rose 28% compared to the same week in 2024, consistent with a drop in mortgage rates, according to Realtor.com. According to Mortgage News, the average interest rate for 30-year fixed loans that were popular in mid-January was about 7.25%, but has steadily dropped to 6.82% now, according to Mortgage News.
This photo, taken on February 14, 2023, shows homes for sale in Washington, D.C.
Aaron Schwartz | Xinhua News Agency | Getty Images
The inventory gains in the DC area are not entirely due to people putting homes on the market. New lists have risen, but are well below overall inventory, so the increase in overall supply is a combination of new lists and slower buyer activity.
Realtor.com found that last week’s new listings grew 24% year-on-year, which led to an increase in sales inventory and a median decline in the market. According to Hale, the new listing list is 11.9% higher than the same period last year, but is still 12.8% lower than the 2022 listing.
Due to the new apartments and townhouses now on the market, large bumps in stock may also occur in stocks. The construction of the DC area has been very active in the past few years. The share of the new building list is more inclined to apartments than five years ago.
As for prices, the DC metro area fell 1.6% year-on-year last week. In the context, in the fourth quarter of last year, that median declined by 1.5% per year.
As of last week, the national average price fell 0.2%, despite a large skew in the types of homes sold. The median price per square foot rises by 1.2% per year in controlling the size of the house, meaning there are smaller or lower-end homes on the market compared to last year.
“While DC has the largest share of federal workers in the country, similar shifts may occur in other high federal job markets over the coming weeks or months,” Hale said. “While I hope many families will choose to stay in the area and hubs for new job opportunities, some may choose to leave, retire or find jobs elsewhere.”
