NORTHERN VIRGINIA, MARYLAND & WASHINGTON, D.C.
Second Quarter & Year-to-Date 2026
The Northern Virginia housing market remained remarkably resilient through the second quarter of 2026, continuing to post gains in home values and sales activity despite elevated mortgage interest rates and ongoing affordability challenges. Average home prices across the region increased 5% during the second quarter and are up 3.0% year-to-date, while closed sales rose 6.6% for the quarter and 6% year-to-date, reaching 14,811 transactions compared to 13,948 during the same period last year. Although buyers have become more selective, homes continue to sell quickly, with average Days on Market increasing only one day—from 16 to 17 days—demonstrating that demand remains strong for well-priced properties.
Fairfax County remained the strongest large housing market in the region during the second quarter, with average home prices rising 7.8% and unit sales increasing 7.8%, while year-to-date gains reached 5.0% and 6.8%, respectively. Alexandria, Arlington, Loudoun, and Prince William also delivered solid performances, underscoring the continued strength of Northern Virginia’s housing market. Alexandria led sales growth with a 9.5% increase, Arlington maintained steady price appreciation of 5.5%, Loudoun benefited from healthy inventory growth and a 3.8% rise in prices, and Prince William continued to attract value-oriented buyers with 2.2% price growth and an 11.4% year-to-date increase in sales. Although Days on Market increased modestly across all jurisdictions, homes are still selling in less than 30 days, indicating a market that is becoming more balanced through increased inventory rather than declining buyer demand.
Despite mortgage rates remaining in the mid-to-upper 6% range throughout the first half of 2026, the Northern Virginia housing market has remained resilient. While higher borrowing costs have impacted affordability and kept many homeowners with low-rate mortgages from selling, strong employment growth, rising household incomes, and steady population gains have sustained buyer demand. Ongoing investments in major transportation and infrastructure projects—including the Long Bridge Project, I-66, the Silver Line corridor, and Fairfax County Parkway improvements—continue to enhance regional connectivity and support long-term property values. At the same time, new home construction remains concentrated in Loudoun, Prince William, western Fairfax County, and Arlington, although limited land availability and higher construction costs continue to constrain housing supply. Looking ahead, these strong economic fundamentals, coupled with improving inventory levels and continued infrastructure investment, position Northern Virginia for a stable and balanced housing market through the remainder of 2026, with steady home value appreciation and healthy buyer activity expected to continue.
Washington, D.C., Montgomery County, and Prince George’s County posted markedly different results during the second quarter of 2026, highlighting the region’s increasingly uneven housing market. Washington, D.C. remained under pressure, with average home prices declining 2.7% for the quarter (-2.3% YTD), despite a 9.2% increase in second-quarter sales, as luxury and condominium markets continued to lag. Montgomery County proved more resilient, with home prices rising 1.3% for the quarter (2.3% YTD) and unit sales increasing 6.4% (5.8% YTD), reflecting steady buyer demand even as marketing times lengthened. Prince George’s County delivered the weakest performance, with modest price declines, lower sales activity, and a 35.5% increase in Days on Market, signaling a slower-paced market. Overall, the region is becoming more balanced, giving buyers greater negotiating leverage while making strategic pricing and effective marketing increasingly important for sellers.
The Greater Washington housing market appears headed for a healthy normalization rather than a correction. Buyers have regained negotiating leverage thanks to increased inventory and longer marketing times, but the region’s strong employment base and chronically limited housing supply should continue to support home values. Northern Virginia is likely to remain the regional leader, Montgomery County should continue posting steady gains, while Washington, D.C., and Prince George’s County are expected to face a slower recovery. By year-end, the market should be more balanced than it has been in several years, creating opportunities for both buyers and sellers who adapt their strategies to current conditions.
Q2 2026
Single family, townhouses & condominiums
ALEXANDRIA ARLINGTON ASHBURN
FAIRFAX CO FAIRFAX STATION LORTON
McLEAN SPRINGFIELD VIENNA
2,259units soldQ22026 12%→ single family homes
2,025 units sold Q2 2025
MARKET BALANCE
The market balance is determined by the average months of supply, (all home types JUNE 2026)
$2.9B TOTAL SALES (SINGLE FAMILY HOMES) Q2 2026
Q2 2026
WASHINGTON, D.C.
Single family, townhouses & condominiums
24
GEORGETOWN KALORAMA LOGAN CIRCLE
MARKET BALANCE
The market balance is determined by the average months of supply (all home types), JUNE 2026.
$452M TOTAL SALES (CONDO & CO-OP) Q2 2026
Single family, townhouses & condominiums*
Q2 2026 *Data above represents Montgomery County only.
BETHESDA CHEVY CHASE POTOMAC
ROCKVILLE SILVER SPRING
CHARLES CO FREDERICK CO
CO
MARKET BALANCE
The market balance is determined by the average months of supply (all home types), JUNE 2026.
1701 Duke Street, Suite 100 Alexandria, VA 22314
703-535-3610