Core Insights - The ongoing federal government shutdown has led to localized and modest impacts on housing markets, particularly in areas with high concentrations of federal employees, such as Washington, D.C., Virginia Beach, and Baltimore [2][4] - Nationally, the median list price for homes remains stable at $424,200, with homes spending an average of 63 days on the market, and 20.2% of listings experiencing price reductions [1][10] Housing Market Trends - In September, the median list price was $424,200, showing a 0.4% increase year-over-year and remaining flat month-over-month [14] - Homes are spending an average of 63 days on the market, which is 5 days longer than the same time last year, indicating a trend towards longer selling times [12] - The number of active listings increased by 15.3% year-over-year, marking the 24th consecutive month of inventory gains, although growth has slowed in recent months [5][6] Federal Employment Impact - Federal employment is most concentrated in Washington, D.C., where 11.0% of employed residents work for the federal government, followed by Virginia Beach (7.0%), Oklahoma City (4.2%), and Baltimore (3.7%) [2] - In these metros, new listings have seen a month-over-month decline, with Washington, D.C. down 13.9%, Virginia Beach down 5.1%, and Baltimore down 2.4% [4] Price Reduction and Buyer Behavior - Price cuts are prevalent, with 20.2% of home listings having price reductions, up 1.6 percentage points from last year [10] - Buyer activity has slowed, with pending home sales down 1.9% year-over-year, indicating a cautious approach from potential buyers amid economic uncertainty [11] Regional Inventory Dynamics - Inventory growth has been observed across all four major U.S. regions, with the West seeing a 17.4% increase and the South a 17.0% increase year-over-year [7] - Despite overall inventory increases, 17 of the top 50 metros still lag at least 25% below their pre-pandemic inventory norms, with Hartford, CT, showing the least recovery at -74.0% [8] Market Conditions and Affordability - The overall housing supply remains below pre-pandemic norms, which continues to affect affordability and competition among buyers [9] - The typical list price per square foot has slightly declined, down 0.5% year-over-year, reflecting ongoing affordability challenges in the market [15]