Executive Summary
- Stagnant Sales: Despite 13-month low mortgage rates, October sales in the Mid-Atlantic saw only a marginal 0.7% year-over-year increase as buyer caution prevails.
- Rising Inventory: Available housing inventory climbed 22.1% compared to last year, a trend driven primarily by decreased buyer activity rather than an increase in new listings.
- Government Shutdown Impact: The ongoing federal government shutdown is significantly cooling the housing markets in Washington D.C., Maryland, and Virginia.
- Price Skew: The median sales price rose 3.7%, but this increase is attributed to a higher proportion of sales in the upper-end of the market, not broad appreciation.
Lower mortgage rates failed to stimulate the Mid-Atlantic housing market in October 2025, as economic uncertainty and a prolonged federal government shutdown kept many potential homebuyers on the sidelines. According to a new report from Bright MLS, closed sales across the region saw a negligible 0.7% year-over-year increase, while rising inventory and slowing activity in key metropolitan areas signal growing caution among consumers.
The Bright MLS October 2025 Housing Market Report documented 19,049 closed sales. While new pending sales, an indicator of future activity, rose by 1.7%, year-to-date figures remain below 2024 levels. Inventory climbed significantly, with 47,900 homes available for sale at the end of October, a 22.1% increase from the previous year. This rise is attributed more to waning buyer demand than a surge in new properties, as new listings were up only 2.5%.
“Even though mortgage rates are at their lowest level in 13 months, homebuyers are still very cautious,” stated Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Many prospective homebuyers are watching the news of weakness in the economy and are carefully monitoring their own economic situations.”
Despite slower sales, the region’s median home price increased by 3.7% year-over-year. However, the report clarifies this is not a broad-based appreciation but rather a reflection of more sales activity occurring at the higher end of the market. The economic climate is having a particularly acute effect on markets reliant on the federal government, including Washington D.C., Maryland, and Virginia, where a government shutdown has entered its second month.
“While the D.C. area housing market has been fairly resilient, we are definitely seeing some cracks,” Dr. Sturtevant added. She warned that if the shutdown continues without back pay for federal workers, the region could face a much slower market in November and December. Already, homes in the D.C. area are staying on the market longer, with the median days on market rising to 18, a full week longer than last year.
Regional Market Highlights
Philadelphia Metro: The market is showing signs of weakening, with closed sales declining 2.2% from a year ago. The median sold price was $388,500, a 2.2% year-over-year increase that marks the slowest pace of price growth since May 2023. Inventory rose 10.4%, though it remains well below pre-pandemic levels.
Baltimore Metro: Buyer activity retreated in Baltimore, where closed sales dropped 2.6% and new pending contracts fell 5.6%. Despite a 0.4% dip in new listings, active inventory was 28.4% higher than a year ago. The median sold price was $405,000, up 3.8%, driven largely by higher-priced homes.
Washington D.C. Metro: The D.C. market showed the most visible signs of strain. In the District of Columbia proper, closed sales fell 9.3% and new pending contracts plunged 15.6%. Across the metro area, inventory swelled by 34.1%, and the median sales price hit $630,000, a 5.0% gain reflecting the active high-end market segment.
Looking ahead, the report suggests that while mortgage rates may ease further, persistent economic uncertainty and affordability challenges will likely constrain the market through the end of the year. The performance of local housing markets in 2026 is expected to be dictated primarily by local economic and demographic trends.
