DC-area home listings surged 56% last week

The Washington, DC metro area is seeing a significant increase in homes for sale. Last week, listings jumped by 56% compared to the same time last year, according to Realtor.com. This rise is much higher than the national average increase of 28%. The trend is driven by a combination of new listings and a slowdown in buyer activity. New construction, especially condos and townhomes, is also contributing to the market. Earlier in the year, inventory levels rose by nearly 36% in January and 41% in February. Despite lower mortgage rates, which have decreased from 7.25% to 6.82% since January, the surge in DC's listings is noteworthy. New listings are 11.9% higher than last year but 12.8% lower than in 2022. Danielle Hale, chief economist at Realtor.com, attributes the market shift to federal budget cuts and layoffs. She notes that many potential buyers may be hesitant due to job uncertainty. As a result, home prices in the DC area are declining, with the median list price dropping 1.6% compared to the previous year. The national home price has seen a slight increase. Hale suggests that other cities with high federal employment may experience similar market changes in the future. While some families may stay and seek new job opportunities, others may choose to leave the area.