Bright MLS September 2025 Housing Market Report

Federal Uncertainty Clouds D.C. Market While Lower Rates Push Sales Across the Mid-Atlantic Ahead of 2024

North Bethesda, MD, Oct. 10, 2025 (GLOBE NEWSWIRE) -- North Bethesda, Md., (Oct. 10, 2025)– The Washington, D.C. metro housing market is under pressure this fall, as federal budget cuts and the threat of a prolonged government shutdown weigh on buyer activity. Across the broader Mid-Atlantic housing region, lower mortgage rates helped lift home sales in September, offering a temporary boost. However, the uptick in activity may be short-lived as rates stabilize, affordability challenges persist and uncertainty continues to keep many would-be buyers and sellers on the sidelines.

According to the Bright MLS September 2025 Housing Market Report, closed sales across the region rose 6.2% year-over-year, with 18,607 homes sold last month. The increase in sales in September pushed the 2025 year-to-date sales total ahead of 2024.

“Mortgage rates came down in August and early September which brought some buyers into the market,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “However, the Washington, D.C. area is showing us how sensitive the market is to broader economic and political uncertainty. 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.”

Despite the regional sales bump, affordability pressures remain. Year-to-date sales are only slightly ahead of 2024 levels, and overall market activity is expected to stay relatively slow. In September, the number of new pending contracts was up by only 0.5% compared to a year ago.

Inventory is expanding quickly. New listings were up 9.7% in September, and the total number of active listings at the end of the month jumped 27% year-over-year, marking the largest increase since April. As supply has grown, price growth has cooled. The median sold price in the Mid-Atlantic was $419,900, just 2.4% higher than last September, the slowest pace in over two years.

“Sellers are adjusting to a new market reality,” Sturtevant said. “Buyers now have more options and more negotiating power, and price trends are starting to reflect that shift.”

Homes are also spending longer on the market, with the median days on market rising to 18, up five days from last year. More inventory and softer price growth are giving buyers more options, but affordability is still a challenge. With rates beginning to level off and macroeconomic uncertainty continuing, especially in areas affected by the federal government, the pace of home sales activity
in the region is likely to remain relatively subdued throughout the fall.

September 2025 Housing Market by Region

Philadelphia Metro: Falling mortgage rates boost home sales activity in the region

There was a significant boost in closed sales, up 6.1% over last September. New pending sales were also up by 2.0% year-over-year.
New listings in September reached 7,189, up 7.2%, and inventory grew 14.4% to nearly 13,000 active listings at month’s end.
The median days on market was 16, three days slower than a year ago, indicating that buyers are taking more time.
Prices continued their upward trajectory, but at a slower pace. The median sold price was $390,000 (+2.7%) in September.
Home sales are tracking slightly ahead of last year in the Philadelphia metro area. However, affordability is still a constraint to many buyers in the market. As mortgage rates stabilize, buyers and sellers likely will be cautious this fall.

Baltimore Metro: Lower rates boost closed sales, but buyers are still cautious

Closed sales in September climbed 6.5% year-over-year, with 2,597 total sales across the region. However, the number of new pending sales was down 3.1% compared to last September.

The median days on market was 16, up five days from last year, as buyers were more cautious and were able to take more time before making an offer.
Sellers were active, with new listings increasing 6.1% and month-end inventory surging 31.7% year-over-year.
The median sold price in September was $400,000, virtually unchanged from last year (+0.5%), marking the slowest pace of annual price growth since spring 2023.
As new listings outpace pending sales, inventory will continue to increase in the Baltimore metro area and home price growth will continue to soften.

Washington D.C. Metro: Government instability puts pressure on housing market

The D.C. metro is being uniquely affected by instability in the federal government. Federal workforce layoffs, return to office mandates and the looming threat of a prolonged shutdown are contributing to growing buyer hesitancy.
There were 3,894 closed sales in September, a 4.4% increase over last year, as local buyers responded to lower mortgage rates. However, new pending sales fell 3.3% year-over-year even as mortgage rates stabilized – a result of many home shoppers hitting pause in the face of the federal budget gridlock and job insecurity.
Overall, home price growth has essentially stalled, with the regional median sold price at $600,500, up just 0.3% from a year ago. Price performance varied widely across the region with some suburban markets seeing modest growth while urban areas show declines.
The median days on market in September was 21 days, 10 days longer than last year, reflecting increased caution and longer decision timelines.
Some buyers, particularly those not reliant on government employment, may take advantage of lower rates and more available inventory. But for much of the market, uncertainty around the shutdown is likely to slow home sales and soften home prices into winter.

Christy Reap
Bright MLS 
2023099362
christy.reap@brightmls.com

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