The housing market in Montgomery County and Washington, D.C. is showing signs of slowing, with fewer sales and a growing supply of homes available to buyers, according to August data from the Greater Capital Area Association of REALTORS (GCAAR).
Closed sales across the region declined 12.6% compared with August 2025, while the housing supply increased to 3.4 months. That is well above the five-year August average of 2.5 months. There were 4,537 active listings across Montgomery County and D.C. in August, compared with a five-year August average of 3,550.
Despite the increase in overall inventory, fewer new homes are coming onto the market. There were 1,354 new listings in August, below the five-year average of 1,590. New pending sales were also down, totaling 1,070 compared with the five-year average of 1,291.
Home prices, however, continued to rise. In Montgomery County, the median sold price reached $639,540, up 3.3% from August 2025. The county recorded 783 new listings, a 2.9% decrease from a year earlier, while homes spent an average of 28 days on the market, one day fewer than in August 2025.
In Washington, D.C., the median sold price was $681,500, up 1.7% from the previous August. New listings declined 15.9% to 571, while the average time on the market fell by seven days to 51 days. Across the combined Montgomery County and D.C. market, the median sold price for residential properties was $650,000, an increase of 3.3% from the previous month.
“The traditionally resilient housing market in our area is starting to mirror the slowing regional and national market trends we’ve seen for the past several months,” GCAAR President Russell Brazil said. “While prices continue to inch upward, and interest rates have gone up, listing and sales activity are sluggish.” Brazil noted that while fewer homes are entering the market, the decline in sales means buyers are facing less competition for properties that are already available.
The August numbers suggest a market that is becoming somewhat more favorable to buyers in terms of selection and competition, even as home prices remain higher than they were a year ago.
