The Washington, DC, housing market may be on its back foot this fall because of federal job cuts and the ongoing government shutdown, but the rest of the mid-Atlantic region is faring better.
In September, home closings across the region, which includes Delaware, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia, jumped 6.2% from a year ago, with more than 18,600 properties sold, according to the latest monthly housing market report from Bright MLS.
However, new pending sales edged up by just 0.5% year over year, while the median sale price saw a 2.4% annual boost, reaching $419,000 last month.
“Falling mortgage rates have brought more buyers into the market, though year-to-date sales activity is still only slightly above last year as affordability challenges continue to hold back some buyers,” states the report.
At the same time, the mid-Atlantic region saw a surge in inventory, with active listings increasing nearly 27% compared to 2024 and new listings—a measure of sellers putting new homes on the market—were up about 10% year over year.
While the boost in inventory is offering buyers more time to make a decision, with the median days on the market rising to 18—up five days from a year ago—it also seemingly slows down price growth.
Researchers at Bright MLS warn that the recent lift driven by mortgage interest rates in the low-6% range might be temporary.
“Sellers are adjusting to a new market reality,” says Dr. Lisa Sturtevant, chief economist at Bright MLS. “Buyers now have more options and more negotiating power, and price trends are starting to reflect that shift.”
Major mid-Atlantic metros get a boost
Among the trio of major metros anchoring the mid-Atlantic region, Baltimore registered the biggest year-over-year spike in closings in September, at 6.5%.
The typical home in Charm City sold last month for $400,000, up just 0.5% from a year ago, marking the slowest annual growth pace since spring 2023.
At the same time, pending sales in Baltimore were down 3.1% from a year ago, and showings were also in the red on an annual basis.
“As new listings outpace pending sales, inventory will continue to increase in the Baltimore metro area and home price growth will continue to soften,” predicts the report.
Philadelphia saw a 6.1% increase in closed sales compared to the same period in 2024. New pending sales were also up by 2% year over year.
Home prices in the City of Brotherly Love continued to increase, with the median sale price climbing to $390,000, up 2.7% from last year.
The typical listing in Philly lingered on the market three days longer than in September 2024, signaling that buyers were being cautious and taking their time.
Uncertainty weighs heavily on DC
Washington, DC, is feeling the effects of the federal government shutdown, which went into effect last week after Republicans and Democrats in Congress failed to agree on a spending bill.
The disruption has resulted in some 750,000 federal government workers being furloughed, with the Trump Administration threatening mass firings.
The political standoff comes months after the Department of Government Efficiency‘s sweeping job and budget cuts, which have weakened the DC housing market boasting the nation’s highest share of federal workers, at roughly 11%.
In September, there were 3,894 closings across the metro, up 4.4% from last year. However, the
number of new pending sales dropped by 3.3%. Bright MLS attributes this decline to “concerns about a
federal government shutdown” among potential buyers.
The median sale price in the area was $600,500, up a mere 0.3% from a year ago. Homes also were taking much longer to sell, with the typical for-sale property waiting for a buyer for 21 days, up 10 days from last September.
“The Washington, D.C. area is showing us how sensitive the market is to broader economic and political uncertainty,” says Sturtevant. “In places where the federal government has a strong presence, such as D.C., we’re already seeing the impact of the shutdown and job insecurity.”
Experts at Bright MLS say that due to the economic uncertainty, especially in areas with high shares of government workers, the sale pace in the region will likely remain subdued throughout the fall.
