If you’re buying a home in the DMV in 2026, $700,000 is still a strong budget—but what it buys you changes quickly based on interest rates and location. A small shift in mortgage rates can change your monthly payment enough to affect whether you choose Arlington homes near Metro, a bigger Alexandria layout, or a different D.C. neighborhood. Below is a practical guide to buying power in 2026, plus next steps with the KS Team real estate experts.

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How are interest rates shaping buying power in 2026?

Mortgage rates influence affordability more than most people expect. As of January 22, 2026, Freddie Mac reported the average 30-year fixed mortgage rate at 6.09%. (freddiemac.com) Even a modest move from there can noticeably change your payment.

Here’s a simplified example for a $700,000 purchase with 20% down (principal & interest only; taxes, insurance, HOA, and PMI vary):

• Loan amount: $560,000

• At ~6.1%, estimated payment ≈ $3,390/month

• At 7.0%, estimated payment ≈ $3,726/month

• Difference: about $335/month

This is why many 2026 buyers negotiate seller credits for rate buydowns, prioritize homes that don’t need immediate big repairs, or widen their search radius to keep the monthly cost comfortable.

How is the DMV market changing in 2026?

The DMV real estate market is less “one speed” and more neighborhood-by-neighborhood. Rates have eased from recent highs, but many experts still expect 2026 to hover around the 6% range, even if there are brief dips below 6%. (AP News) The Mortgage Bankers Association has also suggested rates may not fall much below 6% in 2026. (National Mortgage Professional)

Inventory has been rising nationally compared to prior years, giving buyers more options than during the tightest stretch. (Realtor) Regionally, Bright MLS projected the Washington metro area could see a slight median price decline in 2026 (about 1%). (FFXnow)

Practical takeaways:

• Buyers are payment-focused and more selective on condition.

• Well-priced homes still move, but negotiation is back on the table in many segments.

What does $700K buy in Arlington VA in 2026?

Arlington VA real estate 2026 is still driven by walkability, Metro access, and easy commuting. Redfin reported a median sale price of about $739K in Arlington in December 2025, which puts $700K just under the median. (Redfin)

With $700K in Arlington, buyers most commonly find:

• A 1–2 bedroom condo near major corridors and Metro stations (Ballston, Clarendon, Rosslyn, Pentagon City, Crystal City)

• A larger condo or “1 + den” layout that functions like a second bedroom (great for hybrid work)

What should first-time buyers know in Arlington VA?

If you’re a first-timer, Arlington rewards preparation:

• Know the full monthly cost. HOA fees can shift what “affordable” feels like.

• Move quickly on the right listing. The best-priced homes don’t wait around.

• Use protections that reduce stress. Learn how the KS Team Buyer Guarantee can help you buy with confidence.

What does $700K buy in Alexandria in 2026?

Alexandria blends charm, community, and commuter convenience—from Old Town waterfront energy to Del Ray’s neighborhood feel. Redfin reported a median sale price around $637K in Alexandria in November 2025, making $700K a budget that often stretches farther than it does in Arlington. (Redfin)

At roughly $700K in Alexandria, buyers often find:

• Townhome-style living in many neighborhoods (with big differences block to block)

• Strong condo options with walkability (fees and amenities vary by building)

What does $700K buy in Falls Church in 2026?

Falls Church can run pricier with limited inventory—especially in the City of Falls Church and near Metro access (East/West Falls Church). Redfin reported a median sale price around $875K in Falls Church in November 2025, so $700K typically targets condos, smaller homes, or nearby border areas where your dollar can stretch farther. (Redfin)

What does $700K buy in Washington, D.C. in 2026?

D.C. is a city of micro-markets. Redfin reported a median sale price around $715K in Washington, D.C. in December 2025, putting $700K near the citywide midpoint. (Redfin)

At around $700K in D.C., buyers often find:

• A condo in many central areas (building fees and amenities drive value—Navy Yard and NoMa can look very different from Dupont or Logan)

• A rowhome or semi-detached home in neighborhoods where you get more space for your dollar (for example, parts of Petworth, Brookland, or Fort Totten)

First-time homebuyer guide DC: what matters most?

For first-time buyers, focus on:

1. HOA/building fundamentals (reserves, rules, fees)

2. Commute + lifestyle reality (parking, Metro, daily errands)

3. Resale flexibility (layout and broad future appeal)

How can sellers protect value when rates change?

If you’re selling your Arlington VA home—or anywhere in the DMV—remember buyers shop by monthly payment in 2026. That means condition, presentation, and pricing discipline matter more.

A strong plan usually includes:

• Pricing to the market today (buyers compare options instantly)

• Launching strong (prep, photos, and easy showing access)

• Considering a seller credit to support a rate buydown

• Extra confidence with the KS Team Seller Guarantee

FAQs: quick answers DMV buyers are searching in 2026

Is $700K enough to buy in Arlington in 2026?

Yes—especially for condos and some townhome-style options. Since Arlington’s median sale price has been around the high-$700Ks, $700K is typically a “targeted search” budget. (Redfin)

Should I wait for interest rates to drop more in 2026?

Timing rates is tricky. Rates were about 6.09% in late January 2026, and many forecasts expect a range rather than a straight drop. (freddiemac.com) If the home fits and the payment works, don’t underestimate the value of certainty.

How do I find the best homes under $700K fast?

Set alerts and filter by neighborhood and home type so you see new listings immediately: Search All Homes.

What if I’m selling—how do I know what my home is worth in 2026?

Start with an instant estimate, then fine-tune with a local pricing strategy: Free Home Valuation.

Ready to make a confident move in 2026?

Whether you’re buying a home in the DMV with a $700K budget or preparing to sell, the right plan can turn today’s market into an advantage. The KS Team real estate experts will help you compare Arlington, Alexandria, Falls Church, and D.C. options with a payment-first strategy. If you want a quick game plan for your next move, you can Contact KS Team anytime.

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/