The number one question we are being asked by friends and clients is "What is going on with our market since the federal layoffs have started and where is it going?"
First and foremost, we want to extend my deepest sympathy to those affected by the federal layoffs. We can only imagine how challenging this time must be for you and your family. If there’s anything we can do to help, please don’t hesitate to reach out.
With all these federal layoffs and buyouts happening, many think the local real estate market—especially in the DC area—would be going crazy, but honestly, it’s holding steady. About 75,000 federal employees took buyouts as part of the government’s effort to downsize, but that hasn’t really caused a flood of new listings or a big dip in home prices.
In places like Potomac, Bethesda, and even parts of DC, the market is moving pretty much as expected for this time of year. Inventory levels and pricing trends are staying in line with typical seasonal patterns. There’s been a slight increase in listings, but that was already happening before the layoffs started and our Spring market is underway. And as of now, there’s no massive wave of former federal workers rushing to sell their homes.
With that said, the effects of these job cuts might not be felt immediately. Some areas with a high concentration of federal employees could see a little more movement in the coming months. But overall, buyers and sellers aren’t panicking.
On the flip side, luxury real estate is actually picking up. There’s been a noticeable jump in ultra-high-end listings—like $7 million-plus homes. It seems like some sellers in that price range are testing the waters, but it’s not necessarily tied to federal job cuts.
So, what we are seeing and hearing is that the market isn’t crashing, and there’s no big sell-off happening. It’s more of a “wait and see” situation, but for now, the impact isn’t as dramatic as some people expected.
We are always happy to meet for coffee and chat further!
