The Federal Shutdown Has Buyers And Sellers Pressing Pause In DC Region

• October 15th

by UrbanTurf Staff

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Two weeks in, the federal government shutdown is beginning to leave its mark on the region’s housing market. A report from Bright MLS finds that the market essentially hit the pause button last week. 

New listings in the region dropped 4.8% during the week ending October 12. Year-to-date, listing activity in greater Washington has outperformed much of the Mid-Atlantic, but the recent slowdown suggests that sellers are growing more cautious. 

On the buyer side, caution is also creeping in. Even with mortgage rates sitting near their lowest point of 2025, demand in the region has softened. The number of new pending contracts fell 1.9% from last year, while showing activity declined by 3.1%.

Inside the District, the market chill is even more noticeable. For the sixth straight week, activity in the city has lagged behind the rest of the region. New pending sales were down nearly 27% year-over-year during the week ending October 12, while showing activity fell 15.5%. New listings, too, slipped 4.6% compared to last year. 

The uncertainty surrounding the shutdown is clearly weighing on buyer confidence. Realtors are reporting that some would-be buyers are choosing to wait out the stalemate before making offers, wary of making a major financial move amid fiscal uncertainty.

For now, the region’s market fundamentals remain relatively intact, but the mood has turned noticeably more cautious.

"The deployment of the National Guard in the District has had a chilling effect on the city’s housing market," the Bright report stated. "Now, a prolonged Federal government shutdown and the potential for more firings of Federal government workers could have a significant impact on the region’s economy and housing market."

This article originally published at https://dc.urbanturf.com/articles/blog/the_federal_shutdown_has_buyers_and_sellers_pressing_pause_in_dc_region/23969.