WASHINGTON, October 16 — Home sales in the Washington, D.C. region fell 8.4% in September compared to the same month last year, marking the lowest September sales total in nearly two decades, according to Bright MLS. The bottom line: buyer pullback outpaced closed transaction declines, with new pending sales dropping 17.1% and showings falling 16.9%. Bright MLS attributes the slowdown primarily to higher mortgage rates, not federal government workforce reductions, noting the trend was evident across virtually all local jurisdictions in the D.C. area.
By the numbers: despite falling sales, the median sold price increased slightly by 1.6% year-over-year to $610,000, a shift Bright MLS explains reflects a changing mix of sales — more higher-priced single-family homes and fewer townhomes and condos. The detached home segment remained the strongest, with a median price of $785,000, up 2.6% from the prior year, even as sales in that category slipped 4.7%.
Inventory dynamics reveal a growing imbalance: active listings rose 20% year-over-year, pushing the region above pre-pandemic levels, while months of supply increased from 2.65 to 3.22. This buildup is not due to a surge in new listings, which were essentially flat, declining just 0.3%, but rather because few buyers are signing contracts, causing new listings to outpace new pendings and unsold homes to accumulate. Market conditions vary significantly by locality.
In Washington, D.C. proper, the median price decreased 2.9% to $660,000, homes took a median of 36 days to sell — the longest in the report — and the supply of unsold homes reached nearly six months. Alexandria saw prices fall 11.4% to $660,000, and Arlington experienced a 4.6% decline to $655,000.
In contrast, Fairfax County bucked the regional trend with a 5.6% increase in median price to $749,750. Frederick County was one of the few areas with increased closed sales, up 8.8% year-over-year, while Loudoun County recorded a 34.1% jump in inventory. Bright MLS forecasts that some local markets may see prices dip below year-earlier levels this fall, though it does not anticipate significant declines.
The data reflects conditions as of September, with the report released in early October, anchoring the story to that timeframe rather than presenting it as breaking news.
