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January 16, 2026

2026 Housing Market Outlook for DC, Arlington & Northern VA: What Buyers and Sellers Can Expect in the DMV

2026 Housing Market Outlook for DC, Arlington & Northern VA: What Buyers and Sellers Can Expect in the DMV

If you’re thinking about buying a home in the DMV or selling your Arlington VA home this year, you’re not alone—and you’re definitely not late. The Arlington VA real estate 2026 outlook points to a market that’s gradually becoming more balanced, with more inventory and slightly improved affordability, even as certain neighborhoods remain competitive. From D.C. rowhomes to Alexandria townhouses and Arlington condos, here’s what buyers and sellers should know heading into 2026.

Want to browse what’s available right now? Start here: Search All Homes → https://kerishull.com/home-search/

 


 

How is the DMV market changing in 2026?

The big story for 2026 is a shift toward a healthier, more “normal” market pace—but not the same experience everywhere. Nationally, Bright MLS projects inventory rising and mortgage rates easing modestly through the year, with overall home prices showing slow growth (not a dramatic drop). (GlobeNewswire)

Locally, the Washington metro area stands out because Bright’s forecast expects weaker demand and slower price growth, with the region’s median price projected to dip modestly (about 1%) in 2026—paired with more listings and more sales activity as buyers re-enter the market. (Axios)

What that means in plain English:

  • Buyers may see more options and slightly less pressure than the peak “bidding war” years.

  • Sellers still have opportunity—but pricing and presentation matter more than they did in ultra-tight markets.

  • Market conditions will vary by property type (single-family vs. condo) and by micro-neighborhood.

 


 

What does the 2026 outlook look like in Arlington, Alexandria, and Falls Church?

Northern Virginia is expected to “find balance” in 2026, with moderate price increases, inventory growth, and mortgage rates that hover around ~6% for much of the year. (NVAR)

Arlington, in particular, is projected to remain strong—especially for single-family homes—because supply is still limited relative to demand. A local summary of the NVAR/George Mason forecast projects Arlington’s 2026 trends roughly like this:

  • Single-family: median price +3.8%, inventory +27.8%

  • Townhomes: median price +1.9%, inventory +20.8%

  • Condos: median price +2.1%, inventory +30.9% (ARLnow | Arlington, Va. local news)

Alexandria is projected to see even higher single-family price growth (around +4.2%) in that same forecast, showing how close-in, high-demand areas inside (or near) the Beltway can continue to outperform. (ARLnow | Arlington, Va. local news)

 


 

What should first-time buyers know in Arlington VA?

If you’re looking for a first-time homebuyer guide DC/Arlington-style, here’s the reality: Arlington is still a premium market, and the best homes—especially in areas like Clarendon, Ballston, Lyon Village, Rosslyn, Crystal City, and Shirlington—tend to move quickly when they’re priced well.

A few 2026-specific tips that can help you compete without overreaching:

Get “rate-ready,” not just “house-ready”

Major forecasters expect mortgage rates to ease gradually; for example, Fannie Mae projected rates ending 2026 under 6% (around 5.9%) in its September 2025 outlook. (Fannie Mae)
That doesn’t mean you should wait. It means you should plan:

  • Consider temporary rate buydowns (seller-paid credits can help)

  • Compare fixed vs. ARM options (depending on your time horizon)

  • Build a budget around comfort, not maximum approval

Pick your “non-negotiables” early

In Arlington VA real estate 2026, the winning buyers are decisive because they’ve already chosen:

  • Location vs. square footage

  • Turnkey vs. renovation potential

  • Condo/townhome vs. single-family tradeoffs

Use strategy (not luck) to win

The strongest offers usually combine:

  • Clean financing + strong earnest money

  • The right contingencies (not always zero contingencies)

  • Flexible timing for the seller

(And yes—having a local team matters. The KS Team real estate experts live and breathe these neighborhood-by-neighborhood dynamics.)

 


 

Are home prices going up or down in DC in 2026?

The most honest answer: both can be true, depending on where and what you’re buying or selling.

Bright’s local outlook (as reported in the D.C. market coverage) suggests the metro could see slower price growth and a small dip in the median price in 2026 as more listings hit the market and some sellers adjust expectations. (Axios)

At the same time, “D.C.” is not one market. In practice:

  • Scarcity neighborhoods (think classic rowhome streets, limited inventory pockets, and highly walkable areas) can stay resilient.

  • Condo-heavy submarkets can feel softer, with more listings and longer days on market. Bright’s outlook specifically notes the condo segment is expected to remain weaker with “lots of inventory.” (Axios)

If you’re selling, the takeaway is simple: you don’t need panic pricing—but you do need smart pricing.

Curious what your home could sell for in today’s market? Free Home Valuation → https://kerishull.com/home-valuation/

 


 

Will there be more inventory in 2026?

Inventory is one of the biggest reasons the market is thawing. Bright MLS projects national inventory increasing year-over-year, giving buyers more choices and reducing some of the pressure that defined the last few years. (GlobeNewswire)

In Arlington and parts of Northern Virginia, the forecast similarly calls for inventory growth across property types, even if it’s coming off a low baseline. (ARLnow | Arlington, Va. local news)

What inventory growth usually changes:

  • More showings and more “second looks” for buyers

  • More negotiation (especially on inspection items and closing costs)

  • More importance placed on listing preparation for sellers

 


 

What should sellers do to stand out in 2026?

In a more balanced 2026 market, selling isn’t about “throwing a sign in the yard.” It’s about positioning. Here’s what tends to move the needle:

Price like a pro (not like a headline)

If buyers have more options, they’ll skip anything that feels overpriced. The right strategy is:

  • Data-driven pricing based on true comps

  • A plan for the first 7–10 days (when demand is highest)

Make it easy to say “yes”

Even in strong neighborhoods, buyers respond to listings that feel low-risk:

  • Pre-inspection or pre-list prep (roof, HVAC service, small repairs)

  • Clean staging and professional photos

  • Clear disclosures and a smooth showing plan

Consider strategic concessions

With rates still a factor, concessions can outperform price cuts:

  • Closing cost credit

  • Temporary rate buydown credit

  • Flexible closing date or rent-back (if it helps the seller’s timeline)

Looking for added confidence? KS Team offers peace-of-mind options for both sides of the transaction:
Seller Guarantee → https://kerishull.com/seller-guarantee/

 


 

Are condos and townhomes a good move in 2026?

For many DMV buyers, townhomes and condos are the smartest “entry point”—but you want to go in eyes-wide-open.

In Arlington, condo pricing is projected to rise modestly, but the condo segment may face headwinds from higher association fees and increased inventory. (ARLnow | Arlington, Va. local news)
Regionally, Bright’s local coverage also flags the condo market as weaker, with more inventory. (Axios)

Practical advice for condo buyers:

  • Review condo docs carefully (reserve studies, fee trends, rental caps)

  • Ask about upcoming capital projects (elevators, roofs, façades)

  • Compare monthly payment scenarios (condo fee + mortgage) vs. a townhome

 


 

What “wild cards” could shift the 2026 DMV housing market?

DMV real estate is uniquely tied to federal and economic signals. A few factors to watch:

  • Federal workforce and agency uncertainty (which local forecasts note can affect housing activity and demand). (NVAR)

  • Return-to-office patterns, which can boost close-in areas like Arlington, Alexandria, Falls Church, and many D.C. neighborhoods. (ARLnow | Arlington, Va. local news)

  • Mortgage-rate policy moves. In early January 2026, Reuters reported a directive involving large-scale mortgage bond purchases intended to put downward pressure on mortgage rates—an example of how policy headlines can influence buyer sentiment (even if the rate impact is debated). (Reuters)

The best plan in a market with wild cards: focus on what you can control—price, preparation, financing strength, and timing.

 


 

Ready to buy or sell in the DMV in 2026? Here’s your next step.

Whether you’re upsizing in Arlington, buying your first place in D.C., or selling in Alexandria or Falls Church, 2026 is shaping up to reward people who move with a plan—not just a hope.

Ready to take the next step toward your Arlington VA home? Contact KS Team today to schedule a free buyer consultation or get your home’s value instantly with our free home valuation tool:
https://kerishull.com/home-valuation/

Don’t forget — our Buyer Guarantee and Seller Guarantee give you total peace of mind in any market:

Contact us here: https://kerishull.com/contact-us/

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Meet the Author - KS Team

Ranked as the Top Producing Real Estate Team in the DC Metro area, Keri Shull and her team have sold nearly $5 billion of local real estate. The team has helped thousands of families buy or sell their home in VA, DC, & MD. Keri offers her clients several GUARANTEE programs that eliminate the typical risks associated with buying or selling properties. Get in touch today for amazing results!

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