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…