DC-Area Buyers Pulled Back Hard in October, And Sellers Are Feeling It

• 9:35 AM EST

by UrbanTurf Staff

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A report on the fall housing market in the DC region shows a market that has slammed on the brakes. 

The latest report from Bright MLS finds that closed sales across the region fell 19.2% in October compared to a year ago, while new purchase contracts dropped 20.4% — the clearest sign yet that buyers have stepped back from the market in a meaningful way. Showing activity tells the same story, down 15.2% year-over-year as prospective buyers increasingly take a wait-and-see approach heading into the winter.

The culprit is no mystery. Mortgage rates have climbed well above 7%, a full percentage point higher than this time last year, and the financial math simply isn’t working for many buyers. 

“Buyers are holding back this fall with rates above 7%,” said Bright MLS Chief Economist Lisa Sturtevant. “While higher-income buyers and cash buyers are still in the market, it has gotten very difficult for first-time and moderate-income buyers.” 

With buyers on the sidelines, inventory is piling up — and sellers are feeling it. Active listings across the DC area reached 13,260 in October, a 22.1% jump from a year ago, and months of supply climbed to 3.38 compared to 2.70 last October. Sellers who need to move are increasingly dropping their asking prices and offering concessions to get deals done. New listings, meanwhile, were down 6.1% from last October, suggesting many would-be sellers are choosing to stay put and wait for better conditions.

Bright MLS expects sluggish conditions to persist through the end of the year, with inventory continuing to rise but no dramatic price drops on the horizon as sellers hold firm. For buyers who have been priced out or frustrated by the competitive conditions of recent years, the shifting landscape offers more leverage — but only if rates eventually cooperate. Most eyes are now on 2027.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/dc-area_buyers_pulled_back_hard_in_october_sellers_are_feeling_it/25181.