The Affordability Crunch is Stark

Contract activity for July 20 – 26, 2025, in the Metro DC area was up 1.2% compared to the same seven-day period last year.

Key Takeaways

• Four of the six areas we track posted increases in the number of newly ratified contracts, with particularly strong weeks in Northern Virginia (up 12.3%) and Montgomery County, Maryland (up 12.2%).
• At the other end of the spectrum is Prince George’s County, Maryland, which was down 21.9% last week and is down 12% year-to-date.
• Much of Prince George’s market is first-time homebuyers, and they are clearly feeling the pinch of higher home prices and stubbornly high mortgage rates.

Why It Matters

• The affordability crunch is evident throughout the region.  In all six areas the number of newly ratified contracts on homes priced under $750,000 – typically the price range for first-time buyers – is down, while contract activity in the move-up price range above $750,000 is up in comparison.
• The ability to bring equity to the table makes it a lot easier for those repeat buyers, while coming up with the down payment for first-timers is a lot tougher.
• And once again, homes are taking longer to sell than a year ago.  This same week last year saw homes going under contract in an average of 30 days... and that climbed to 39 days now.