Redfin chief economist Daryl Fairweather described the current trend as unusual. “It’s a new phenomenon that new listings would be jumping so much. This is a record,” she said.
While prices have not dropped significantly, the trajectory appears different from prior years. The median home price in the broader metro area—which includes Northern Virginia and parts of Maryland—fell 3%, while nationwide inventory increased by 14.2% in comparison to DC’s 25.1% jump.
Remote work redefines housing needs
Federal employment reductions are a major factor. CNN reports that since January 20, more than 121,000 federal workers have been laid off or marked for downsizing. As remote work becomes a viable alternative, fewer workers find it necessary to remain in the capital.
Redfin senior economist Asad Khan stated, “What’s happening with housing inventory in Washington, DC could be a sign of what’s to come in other US housing markets. And while strong housing demand is buoying prices in DC, the rest of the country isn’t so hot. Other markets may not be able to absorb further inventory growth without prices softening.”
Although DC has not officially become a buyer’s market, market dynamics are shifting. The district currently holds a three-month supply of homes, below the four-to-five-month range that generally signals a balanced market.