Listings are soaring amid job market turbulence and other pressures
Housing inventory in Washington, DC, surged 25% year over year in May, marking the largest annual increase on record, according to new data released by Redfin. The sudden influx of listings signals a developing transition in a market long dominated by sellers.
The growth in available homes aligns with federal job reductions that have led many residents to sell their properties and relocate to more affordable areas or take remote positions.
“Quite a few people in DC are selling their homes because they’re losing their jobs,” said Mary Bazargan, a local Redfin Premier real estate agent. “Many of those people are planning to leave the area because the cost of living is high and they want a new job that allows them to work remotely and be closer to family.”
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.
Bazargan noted that despite the higher inventory, competition remains for well-located homes. “The seller decided to go with an all-cash offer because [they were] concerned the buyer, with the uncertainty of the economy, might lose their job and not be able to get to closing,” she said.
Mortgage rates remain high, averaging in the 6% range. Both buyers and sellers are adjusting expectations as the market moves away from its previous seller-centric pattern.
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