A "Tale Of Three Markets" In The DC Region

• September 16th 2025

by UrbanTurf Staff

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The DC area housing market is entering the fall season with three different stories playing out across the region, according to Bright MLS.

The latest weekly report from Bright finds that the District and Maryland suburbs show signs of cooling while Northern Virginia continues to demonstrate resilience, driven by strong demand and a more diversified economy.

In DC, new pending sales and showing activity are down significantly for the third straight week. During the week ending September 14, pending contracts fell 17.9% from the same week last year, while showings dropped 12.7%. These declines coincide with the recent deployment of National Guard troops in the city, which has added uncertainty to an already cautious buyer environment. Although pending sales and showings are also down across the wider area, the year-over-year declines in DC stand out as being particularly steep.

The Maryland suburbs are also feeling the chill. Montgomery and Prince George’s counties have seen buyers pull back over the past two weeks, with pending sales falling 15.8% and 6.6% year-over-year, respectively. Showings were also lower, especially in Prince George’s County. Bright suggests that these declines may be linked to federal government layoffs and budget cuts, which hit the Maryland suburbs harder given their concentration of federal agencies and employees.

In contrast, Northern Virginia’s close-in markets remain a bright spot. Arlington and Alexandria have posted strong gains, with new pending contracts running well ahead of last year. Over the past four weeks, Arlington saw pending sales rise 10.6% compared to the same period in 2024, while Alexandria surged 13.2%. This strength reflects Northern Virginia's more diverse economy and higher-income buyer pool, which has helped shield markets from the uncertainty weighing on the District and Maryland.

While only representative of a few weeks of data, the diverging trends point to a fragmented housing market across the region. Federal actions and economic shifts are dampening activity in some areas, while others benefit from stronger fundamentals and buyer confidence. As fall unfolds, the “tale of three markets” underscores how local dynamics and broader national policies are shaping the real estate outlook in very different ways across DC, Maryland, and Northern Virginia.

This article originally published at https://dc.urbanturf.com/articles/blog/a_tale_of_three_markets_in_the_dc_region/23866.