This sentiment echoes the thoughts of First American chief economist Mark Fleming, who said new home sales were below what was needed, especially considering rates decreased in the month of February. He noted that builders still face supply-side challenges, which may become more difficult when tariffs are enacted.
Mark Fleming of First American notes that home sales are still lower due to supply-side challenges and potential tariffs. Lower mortgage rates help push new-home sales higher | Mortgage Professional
— Mortgage Professional America Magazine (@MPAMagazineUS) March 28, 2025
Job cuts may open up opportunities in the market
However, Hardy noted that brokers may see an opportunity to help buyers get to the market. She said that the DC area has suffered a shortage in housing inventory, and with workers potentially having to relocate for new job opportunities, the market may pick up again.
“This could actually help the housing market a bit,” Hardy said. “The DC metro area inventory has been so short. It’s been one of our biggest concerns. Supply does not match demand. It’s been a seller’s market for so long. There might be some deals to be had for buyers.”
While federal workers who have lost their jobs may be leaving the Washington, DC area, other federal workers who have been ordered back into the office may be taking their place in the housing market, Hardy noted. Many people who had moved farther away from the capital while working from home could be looking to relocate closer to reduce the now-required daily commute.
Steady long-term interest rates may lead buyers to take action
Hardy also believes that a forecast of steady or slightly declining interest rates may encourage potential buyers to stop waiting and enter the market.