Cracking But Not Fractured: The DC-Area Market A Month Into The Shutdown

• November 4th 2025

by UrbanTurf Staff

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A month into what could become the longest Federal government shutdown in history, the DC-area housing market is showing signs of strain—but not collapse. 

First, a look at sellers. Over the last four weeks, sellers appear to be growing more cautious. Year-to-date, new listings in the region remain stronger than those across the broader Mid-Atlantic, but the pace has slowed as the shutdown drags on. 

New listings were up 6.3% year-over-year in the region during the past month, compared to a 4.7% increase across the Bright MLS service area. However, during the week ending November 2, listings dipped 2.4% compared to a year ago, while the broader region was essentially flat.

On the buyer side, the picture is more encouraging. Over the past month, 6,326 homes went under contract in the greater DC area—a 1% increase from last year. Last week, pending sales were up 6.2% in the region, compared to a 3.5% increase across the Bright MLS footprint. Showings were also higher, suggesting that some buyers are taking advantage of slightly lower mortgage rates and more inventory. 

Within the District itself, however, the housing market is facing more headwinds. Since mid-August—coinciding with the deployment of National Guard troops —buyer and seller activity has cooled. Over the past four weeks, new listings in the city have been flat, while new purchase contracts have fallen 12.1% year-over-year. Showing appointments are down 14.4%. 

“The sky isn’t falling, but it is definitely cloudy,” said Bright MLS Chief Economist, Lisa Sturtevant. “The DC region is proving resilient so far, but the city itself, where federal workers make up a higher share of the workforce, is where we’re seeing the greatest risk. The longer the shutdown lasts, the wider this gap could grow.”

This article originally published at https://dc.urbanturf.com/articles/blog/cracking_but_not_fractured_the_dc-area_market_a_month_into_the_shutdown/24032.