DMV Housing Market

Last week, I had a conversation with a client who was relocating from the West Coast to the DC area. The first question they asked me was, “Is it true that the DMV housing market is collapsing?” They said they had heard that hundreds of listings were flooding the market due to the federal government’s return-to-office policy and job layoffs and that the DC area market was rapidly deteriorating.

This is not even close to the truth. Although the return-to-office mandates and layoffs have sowed uncertainty in our area, people are not reacting by putting their houses on the market. Bright MLS wrote, “Based on our listing data, we are not seeing any evidence of a surge of listings in the Washington, DC region.” In fact, the number of listings coming on the market in the last two weeks was almost identical to the same time period in 2024.

I can also speak anecdotally. Almost all my pre-approvals have told me there is a lack of inventory and that they hope more houses come on the market in March.

Positive Mortgage News

Also, there is some positive news to share. Mortgage interest rates have come down (a little) in the last couple of weeks. In early February, we were closing in on 7%, but now we have dropped back to the mid-6s. It is not much, but it is a much better direction than up. If you want to look at numbers for a potential purchase or refinance, please feel free to contact me.