Jennifer Young Homes’ 2026 Real Estate Predictions for the DMV
After several years of a slower but steady real estate market, 2026 is shaping up to look very different. While 2024 and 2025 were marked by reduced transaction volume and affordability challenges nationwide, momentum is beginning to shift—especially here in the DC Metro area.
Jennifer Young, founder of Jennifer Young Homes, shares her 2026 real estate market predictions and what buyers, sellers, and investors should be watching closely this year.
A Shift After Historically Low Sales
Over the past couple of years, national home sales reached some of the lowest levels seen in decades. Locally, the DC Metro area felt that slowdown as well, even though demand remained relatively strong.
As we enter 2026, conditions are changing. Increased affordability, the potential for lower interest rates, and more homes coming onto the market all point toward increased real estate activity across the region.
Increased Home Sales Expected in 2026
One of the strongest predictions for 2026 is an increase in home sale activity across the DC Metro area.
As mortgage rates begin to ease, more buyers who were previously sidelined by affordability concerns are expected to reenter the market. At the same time, sellers who have been holding onto low-rate mortgages may finally feel motivated to move if rates drop further.
More inventory combined with renewed buyer demand creates an environment where transactions naturally increase—and early indicators suggest that’s exactly what 2026 may bring.
How Mortgage Rates Could Drive Affordability
There has been significant discussion around the federal government potentially purchasing $200 billion in mortgage-backed securities. If that happens, it would likely place downward pressure on mortgage rates.
Lower rates could push affordability back into reach for many buyers, particularly if rates move into the five percent range or lower through buy-down strategies. When affordability improves, buyer confidence rises—and that typically leads to stronger market activity overall.
It’s also important to note that the rates you see online are not always the best available. Working with trusted local lenders can often unlock more competitive options.
Inventory, Appreciation, and Market Balance
The DC Metro region is not a one-size-fits-all market. Some rural areas are currently experiencing more inventory than demand, while suburban and urban markets remain fairly balanced.
If rates drop aggressively and buyer demand surges, appreciation could increase in certain areas—particularly in closer-in counties. At the same time, markets with excess supply may see flat pricing or slight adjustments.
This balancing act will be a key factor to watch throughout the year.
Local Market Forecasts: What the Data Shows
The National Association of Realtors is predicting a 14% increase in home sale activity nationally. Even a more modest 5–10% increase would represent a meaningful improvement over the past two years.
Locally, economists from the Northern Virginia Association of Realtors expect:
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Flat or no appreciation in some suburban counties such as Fairfax, Prince William, and Montgomery
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Some appreciation in closer-in counties
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Possible depreciation in more rural markets
While forecasts provide guidance, real-time market data and neighborhood-level trends matter most—and those vary significantly throughout the region.
What This Means for Buyers, Sellers, and Investors
Overall, 2026 is shaping up to be a busy, steady, and strong real estate year for the DC Metro area.
Buyers may benefit from improved affordability and more inventory. Sellers could see stronger terms as demand increases. Investors may find opportunities as market activity accelerates.
The key is timing, strategy, and understanding how broader economic shifts impact your specific market.
Get Trusted Guidance for Your 2026 Real Estate Goals
If you’re thinking about buying, selling, investing, or simply want clarity on where the market is headed, the team at Jennifer Young Homes is here to help.
There is never any pressure or obligation—just trusted information to help you make the best decision for your goals.
Or call us directly: 703-956-5128
Here’s to a strong and successful 2026!
