'People are stressed': DC house hunters rattled by shutdown

With National Guard troops in the streets and federal workers furloughed, house hunters in Washington are stepping back.

The number of prospective buyers touring properties in the city last week fell 8.5% from a year earlier, according to data from Bright MLS, a regional multiple listing service. It's the eighth straight weekly decline.

READ MORE: Mortgage rates fall to lowest mark in over a year

In a city where nearly one in four workers has a federal job, the government shutdown that began Oct. 1 has added a new layer of disruption. Showings have been dropping since August, when President Donald Trump deployed troops to crack down on crime, Bright MLS Chief Economist Lisa Sturtevant said.

Now, as the shutdown enters its 23rd day, workers have already missed their first paycheck, she said. 

"We're seeing the impact of the uncertainty we've been living with for six months," Sturtevant said. "People are stressed."

High borrowing costs have also sidelined buyers, although mortgage rates have been dropping in recent months, hitting the lowest level in more than a year on Thursday.

The market for condos has been especially weak, said Marc Dosik, who leads the Fed City Team of agents at Century 21 Redwood Realty.

In the Logan Circle neighborhood about a mile north of the White House, Dosik is finding few takers for a 600-square-foot condo. The list price of $480,000 is already $59,000 below what his seller paid in 2020.

"Whenever there's uncertainty, people stop buying houses," Dosik said. "I've got more listings than I normally hold."

Buyers are still out there, but they're looking for something special, said Rebecca Love, an agent with Redfin.  

"Most people aren't flat out stopping their search," Love said. "They are looking for much more perfect places now because they're being cautious with their funds."