DC Area Housing Market Sees Sales Uptick in September Amid Lingering Uncertainty

• October 10th

by UrbanTurf Staff

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After a summer of mixed signals, the DC area housing market showed some signs of life in September, thanks to a dip in mortgage rates that helped boost home sales. However, that boost will likely be short-lived due to the federal government shutdown. 

Closed home sales across the region in September rose 4.4% year-over-year, according to the latest report from Bright MLS out today. Despite the modest increase, new pending sales were down 3.3% last month, a sign that the uncertainty surrounding a potential federal government shutdown (which came to be) may have contributed to buyer hesitation during the month.

"The Washington D.C. area has been disproportionately impacted by federal workforce layoffs and budget cuts and now faces the potential of a lengthy government shutdown," Bright chief economist Lisa Sturtevant said. "Some buyers will be able to capitalize on lower rates and more inventory. Overall, however, expect slower home sales and softer home prices in fall amidst the ongoing uncertainty."

In news that at least buyers will appreciate, home price growth across the DC area appears to have stalled. In September, the median sold price stood at $600,500—just 0.3% higher than a year prior. That figure masks a wide range of pricing variation across the metro area. For example, in DC, prices rose 13% year-over-year in September; in Arlington, they dropped 10%. 

Another sign of cooling is how long homes are sitting on the market. The median number of days a home spent on the market in September was 21, up from just 11 days a year ago. This notable increase suggests sellers are having to adjust their expectations and that buyers, faced with affordability challenges and economic uncertainty, are taking more time to make decisions.

With the fall market now underway, all eyes will be on whether this temporary boost in sales can be sustained, particularly in the face of what could be a lengthy federal government shutdown. 

Photo by Nam Trinh.

This article originally published at https://dc.urbanturf.com/articles/blog/dc_area_housing_market_sees_sales_uptick_in_september_amid_lingering_uncert/23959.