2026 D.C. & Virginia Real Estate Forecast for Buyers and Sellers

By Diane and Brian Hagarty

With multiple industry awards from top brokerages and a loyal following of raving fans, Diane and Brian Hagarty continue to raise the standard for what real estate service should feel like.

The question we hear almost every day is simple. How is the market going to look in 2026? If you live in the D.C. area or Virginia, the answer depends on whether you are planning to buy or sell. Interest rates, buyer demand, and location choices are all shifting, and the decisions you make in the next year could shape your long-term results. I want to walk you through what we are seeing so you can plan your move with clarity. 

The D.C. region has always had a unique real estate market, driven by its strong local economy and the presence of the federal government. That stability will continue to matter in 2026. We have already seen a couple of small interest rate cuts, and we expect at least one more. Rates may not fall back to the historic lows we saw a few years ago, but even a modest drop can bring more buyers off the fence. When that happens, demand rises, and competition follows, especially in price points where most families shop.

What lower rates could mean for buyers. If you’re a buyer, 2026 is not just about chasing the lowest interest rate; it’s about choosing an area that fits your life and your budget. Start by deciding where you want to live, then make sure the payment is comfortable so you are not stretching to the point of hurting. The most crucial step is getting fully underwritten with a trusted lender, not just preapproved.

When we work with our lender partners, we help our buyers complete full underwriting upfront. That means the financing is solid, and you are essentially ready to go as soon as you find the right home. Sellers love that, because it reduces financial uncertainty and can put your offer ahead of others. 

Why move-in ready will matter for sellers in 2026. On the seller side, lower rates and more buyers sound exciting, but this is not a market where you can cut corners. Today’s buyers are often at the top of their budget, and they do not want to spend their savings on repairs right after closing. They are looking for move-in-ready homes. If your home needs work and you list it “as is,” you are more likely to attract investor offers, which are usually lower because investors need room to profit from a flip or rental. 

If you want strong offers from families who plan to live in your home, make sure the home is clean, updated where it counts, and in good condition before you go on the market.

Where mid-range buyers are headed. The D.C. market is broad, and what buyers choose often comes down to affordability. Many mid-range buyers, especially around the five hundred thousand dollar price point, are looking beyond the immediate suburbs. Areas like Front Royal, Winchester, Linden, and Culpeper are becoming very attractive because they offer more homes for the money.

Buyers are willing to trade a longer commute to Reston, Herndon, or the city for a better price and more space. If you own a home in these areas and are thinking about selling in 2026, you may see a healthy wave of interest from buyers who are finally ready to leave the sidelines.

How to time your move in 2026. So what should you actually do with all of this information? If you are a buyer, acting early in the year can be a smart move. Getting fully underwritten, staying within your budget, and buying before competition heats up can protect you from price jumps that might be larger than any extra savings from a slightly lower rate later on. If you are a seller, it can make sense to wait a bit and let buyer demand grow as rates ease. More buyers in the market can mean more showings, stronger offers, and better terms.

Whether you are buying or selling, you do not have to guess about the 2026 market. If you want a personalized plan for the DC and Northern Virginia area, call 703-386-7326, email hello@dianeandbrian.com, or visit www.dianeandbrian.com. We’ll help you review your numbers, timing, and goals so you can make the next move that feels right for your family.