A rise in retirement-related home sales is creating more inventory and starting to put pressure on high prices in the D.C. area, a Bright MLS survey suggests.
Dave Gallagher2 mins
It took some time, but the federal job cuts that began earlier this year are now starting to impact the residential real estate market in Washington, D.C., according to a new survey out today from Bright MLS.
Retirement driving many sales: The survey found that there were 50% more retirement-related sales in the D.C. area than in other markets in the Mid-Atlantic region, suggesting a significant number of older federal workers took buyout offers or were laid off. The survey collected responses from agents and brokers who worked with home sellers on transactions that were completed in March, April and May.
This spring, 15% of home sales in the D.C. area were attributed to retirement, compared to 10% across other communities that Bright MLS serves.
More than half of the agents surveyed (54%) said layoffs and job cuts are impacting market activity, and 38% suggested these workforce reductions are also contributing to a downtick in home prices, though prices in the area are still above national averages.
More market activity expected: The D.C. region is expected to see a continued increase in housing inventory into the summer, according to Bright MLS Chief Economist Lisa Sturtevant.
"This spring marked a turning point for the Washington housing market," Sturtevant said in a press release. "Federal buyouts provided older, often higher-income homeowners a chance to cash out and relocate, but the ripple effects are just beginning. As more impacted families list homes post-school year, we could see further price pressure across the region this summer and fall."
