Q1 2026 GREATER WASHINGTON DC MARKET REPORT

The Greater Washington, D.C. real estate market once again demonstrated its resilience through the first quarter of 2026. While ongoing geopolitical factors continue to create volatility—particularly impacting interest rates and overall affordability—the market has remained steady and even maintained forward momentum heading into Q2. Buyer demand remained resilient as reflected in unit sales, continued to underscore the strength of the region. Home prices have continued to rise, albeit at a much more moderate pace compared to prior years while at the same time, persistent inventory constraints remain a key challenge, limiting the market’s ability to reach its full potential. Bottom line, our market can be best described as stable, active and normalizing.

As a region, Northern Virginia delivered a solid but transitional performance in Q1. While the average sales price declined slightly by -0.13%—a trend not widely seen across most cities and counties—unit sales increased by 5.8%, and days on market rose by 35%. It is important to note that, despite the double-digit increase in days on market (DOM) in all our markets, the average remained relatively low at just under 35 days. With few exceptions, these trends were consistent across most Northern Virginia jurisdictions. Modest home price appreciation, solid unit sales activity, and rising days on market defined the market for the quarter. That said, a few submarkets experienced slight declines in unit sales, including Arlington County (–0.7%), Loudoun County (–4.6%), and Vienna (–3.5%).

Washington, D.C. delivered mixed results in Q1. Overall, the market recorded a -3.2% decline in average sale price, a -14.8% drop in unit sales, and a 14.8% increase in days on market. Performance varied significantly across individual neighborhoods, reflecting uneven market conditions. Most neighborhoods experienced significant declines in the average home prices while several key areas—including the SW Waterfront, Downtown (primarily condos), Capitol Hill, and Kalorama—experienced notable declines in both sales prices and unit sales. While some neighborhoods showed pockets of resilience, overall trends point to a market in transition. Washington, D.C. appears to be shifting from a seller’s market toward a more balanced—if not buyer-leaning—environment, where pricing strategy has become the dominant factor in an increasingly volatile market.

Maryland, similar to trends observed in Northern Virginia, suburban markets outperformed Washington, D.C. in Q1. Montgomery County posted a strong showing, with average sale prices increasing by 4.3% and unit sales rising 4.7%. Days on market increased by 32%, reflecting a modest shift toward more normalized market conditions. Notably, the more affluent communities of Bethesda, Chevy Chase, and Potomac delivered particularly strong gains in unit sales, underscoring continued demand in higher-end suburban markets. In contrast, Prince George’s County and the outlying markets of Rockville and Silver Spring reflected the broader inconsistency observed across the greater Washington, D.C. region in Q1, with both unit sales and home prices showing noticeable fluctuations.

Several factors are expected to shape the real estate market in Q2. Interest rates will continue to act as a headwind, limiting overall market momentum and impacting affordability. As consumer prices rise, buyers including first-time home buyers will face increasing challenges in entering the housing market. Rising cash buyer activity will also shape our market, accounting for roughly 18-24% of all transactions in the DMV, a trend even more pronounced in the more affluent neighborhoods-effectively sidelining some financed buyers. Factors such as the federal workforce reductions, declining consumer confidence, rising inflation, and broader economic concerns will impact sales in Q2 but the market should remain stable for the foreseeable future. Finally, pricing strategy and home preparation will be critical for sellers moving forward, as buyer decision cycles continue to lengthen. Sellers should be prepared for increased negotiation, requests for concessions and home inspections repairs. Buyers, meanwhile, are prioritizing updated, move-in-ready homes, with price and overall affordability remaining key drivers. Ultimately, neither buyers nor sellers fully control the market—the advantage will go to those who are the most realistic and best prepared. Here’s to robust Q2!