Is Now a Good Time to Buy a Home in the Washington DC Metropolitan Area?

Home prices in the Washington DC metropolitan area are expected to be remain flat or decline by 1.0 percent in 2026 according to FFXnow. This would represent a slowdown in the DC real estate market after multiple years of strong growth. However, some other forecasts and appraiser reports suggest modest price stabilization in certain suburban areas of Northern Virginia such as Arlington and Alexandria (DC Metro Appraisals). Buyers are likely to experience greater bargaining power in comparison to prior years as more homes are expected to come on the market (DC Metro Appraisals). Mortgage rates remain slightly elevated in the mid-6.0% range for a 30-year fixed loan, which is significantly higher than the low pandemic rates during 2020. With the Federal Reserve likely to decrease interest rates during the second half of 2026, mortgage rates are expected to dip slightly below 6.0 percent in the Fall of this year.

According to Urban Turf, the Washington DC metropolitan area has been impacted by Federal workforce layoffs and budget cuts. The median number of days a home has spent on the market in the Fall of 2025 was approximately 21 days, which is an increase of 10 days in comparison to the prior year. This indicates that sellers are adjusting their expectations as buyers face economic uncertainty and high mortgage rates. There are other buyers who are reluctant to sell as they purchased a single-family home during the early stages of the pandemic and have already locked in a 3.0 percent mortgage rate (The Washingtonian).

In Conclusion, it is a good time to buy a home if you are planning on keeping the house for over five years as market timing is less relevant over a longer time horizon. Additionally, mortgage rates may decrease only slightly from current rates and could remain elevated for a longer period of time which would not justify missing current opportunities in the market. The market is more balanced than the sellers’ market of recent years as rising inventory and tapering price increases give buyers more leverage and options.