Washington, D.C. – After years of competitive bidding wars and record-high home prices, the Washington, D.C. housing market is showing signs of shifting in favor of buyers. With more inventory available and slower price growth, prospective homeowners who have been waiting on the sidelines may finally find better opportunities this fall.
More Homes on the Market
According to real estate firm Bright MLS, housing inventory in the D.C. area has increased by 50% compared to last year. This surge in available homes means buyers now have more choices and, for the first time in several years, more bargaining power.
“Homes are taking a little bit longer to sell, and sellers have to be really careful about how they price their home,” said Bright MLS Chief Economist Lisa Sturtevant.
While prices remain elevated overall — up 1.6% from a year ago — this marks the slowest pace of growth in more than two years.
Affordability Still a Challenge
Even with more homes available, affordability remains a concern for many. Sturtevant noted that some housing market activity is being driven by job losses among federal government employees, particularly in areas with higher concentrations of federal workers.
“We are seeing some housing market activity related to people losing their jobs with the federal government,” she explained, noting that financial uncertainty has made some sellers more motivated to cut deals.
Suburban Markets Still Hot
Though the D.C. housing market itself is cooling, some suburban areas are still experiencing fast-moving sales.
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Fairfax and Loudoun Counties, Virginia – Homes are still selling in as little as one week, with prices continuing to rise year-over-year.
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Montgomery County, Maryland – The market is weaker, largely due to a significant federal workforce presence and economic uncertainty linked to government employment.
These contrasts show how regional housing trends can vary widely depending on local demand and economic conditions.
Shift in Buyer Demographics
Another notable change is the profile of first-time buyers. A decade ago, the average age of a first-time homebuyer was 28. Today, that number has risen to 38.
Many of these buyers are choosing single-family homes closer to the city rather than smaller condos. With families in mind, space has become a bigger priority, further slowing condo sales in D.C.
Contracts Falling Through
Even when buyers make offers, many deals aren’t making it to the closing table. Rising borrowing costs, stricter financing requirements, and uncertainty about job security are causing more contracts to collapse before finalization.
This adds another layer of unpredictability to the market, leaving both buyers and sellers frustrated.
Market Outlook for Fall
Looking ahead, Sturtevant described the current market as “stuck.” Mortgage rates remain high, and she doesn’t expect a significant drop in the coming months.
“I don’t expect we’re going to see a significant drop in mortgage rates,” she said. “So I think buyers who are waiting for rates to fall are going to remain on the sidelines this fall. I do expect we’ll see prices soften, and perhaps year-over-year price declines in the fall.”
What Buyers Should Expect
For buyers, the shift means more leverage in negotiations, longer time to make decisions, and potentially better deals as sellers adjust to the slower market. For sellers, pricing homes competitively and being flexible may be critical to closing sales.
With more inventory and cooling demand, the fall housing market in D.C. could mark a turning point — offering the most favorable conditions buyers have seen in years.
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