DC REAL ESTATE MARKET UPDATE

District of Columbia Weekly Market Data

BRIGHT MLS DATASET	WEEK ENDING 9/13/26	PRIOR YEAR	PRIOR WEEK
WEEKLY SHOWINGS	2,459	+12.3%	+51.0%
NEW SALES CONTRACTS	154	+35.1%	+51.0%
MEDIAN DAYS TO CONTRACT	37	-9 days	-24 days
NEW LISTINGS	372	-16.6%	+82.4%
MEDIAN LIST PRICE	$672,450	-3.7%	+12.1%
ACTIVE LISTINGS	2,836	+4.2%	+15.8%
% ACTIVE WITH PRICE DROP	6.7%	-1.5 pp	+0.5 pp
CANCELLED LISTINGS	38	-11.6%	+18.8%

Summary

DC’s fall market returned sharply in the first full week after Labor Day. New listings rose from 204 during the holiday week to 372, an 82.4% increase, while active inventory increased 15.8%. Buyers returned too, with showings and new contracts both rising about 51%. Those week-over-week percentages are dramatic, but the post-holiday rebound isn’t unusual: new listings jumped 136% during the comparable week last year. In fact, this week’s 372 new listings were 16.6% below the 446 recorded during the same week in 2025.

The more important question may be what happens to the new fall inventory from here. Mortgage rates climbed above 7% just as the fall market got underway, potentially reducing buyer purchasing power at a time when more homes are coming to market. DC buyer activity rebounded strongly this week, but the relationship between new supply, contracts and price reductions bears watching closely.

The next question is whether buyers absorb this new fall inventory. DC buyer activity rebounded strongly this week, but with mortgage rates moving higher just as the fall listing season gets underway, the relationship between new supply, contracts and price reductions bears watching closely.

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Washington DC Metro Area Weekly Data

The DC Metro Area market consists of District of Columbia, Arlington Va, Alexandria Va, Alexandria City Va, Fairfax County, Fairfax City, Falls Church, Montgomery County Md, Loudoun County Md, and Frederick County Md.

BRIGHT MLS DATASET	WEEK ENDING 9/13/26	PRIOR YEAR	PRIOR WEEK
WEEKLY SHOWINGS	16,627	-5.9%	+22.9%
NEW SALES CONTRACTS	866	-25.2%	-7.8%
MEDIAN DAYS TO CONTRACT	36	+4 days	0 days
NEW LISTINGS	1,842	+13.1%	+25.6%
MEDIAN LIST PRICE	$649,900	+3.0%	+8.3%
ACTIVE LISTINGS	11,860	+16.0%	+9.3%
% ACTIVE WITH PRICE DROP	10.2%	+1.0 pp	+1.3 pp
CANCELLED LISTINGS	147	+20.5%	+5.0%

Summary

The Washington Metro also saw a strong post-Labor Day return of new inventory, but buyers did not keep pace. New listings jumped 25.6% from the holiday week to 1,842 and were 13.1% higher than the same week last year. Showings rebounded 22.9%, while active inventory increased 9.3% for the week and now stands 16% above last year.

Contract activity moved in the opposite direction. New sales contracts fell 7.8% from the prior week to 866 and were 25.2% below the same week last year. At the same time, 10.2% of active listings had experienced a price reduction, up 1.3 percentage points in just one week. The median time to contract remained 36 days.

The holiday week makes the week-over-week comparisons unusually volatile, but the broader pattern is worth watching: sellers returned to the fall market with substantially more inventory while contract activity weakened. With mortgage rates now above 7%, the coming weeks should show whether buyers absorb that additional supply or whether inventory and price reductions continue to build.

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DC (City) Monthly Data

AUG 2026

Sept. 2026 data will be released Oct. 11, 2026

METRIC	AUG 2026	YOY	MOM
TOTAL SOLD DOLLAR VOL	$464,963,547	-2.4%	-19.1%
AVG SOLD PRICE	$1,050,690	+22.9%	+12.7%
MEDIAN SOLD PRICE	$681,500	+1.7%	+1.3%
UNITS SOLD	438	-19.5%	-28.0%
AVG DAYS ON MARKET	51	+15.9%	+13.3%
AVG SP TO OLP	95.7%	+0.5 pp	-0.2 pp
ACTIVE LISTINGS	2,514	-4.3%	-4.4%
NEW LISTINGS	571	-15.9%	-21.9%
NEW PENDINGS	373	-14.6%	-28.1%
ALL PENDINGS	557	-7.3%	-16.2%

Source: SmartCharts Pro

Summary

August 2026 DC (City) Summary

Washington’s housing market slowed considerably in August, as is seasonally expected. Closed sales fell to 438, down 19.5% from August 2025 and 28% from July. New pending sales also weakened, falling 14.6% year over year to 373, while new listings declined 15.9%. With both buyers and sellers pulling back, active inventory actually finished the month 4.3% below its year-ago level.

Prices held up considerably better than transaction activity. The median sold price rose 1.7% from a year ago to $681,500, while the average sold price jumped 22.9% to more than $1.05 million. That unusually large increase in the average was heavily influenced by the mix of properties sold: detached homes averaged $2.27 million, up 49.4% from August 2025, despite only 72 detached sales.

The August numbers point to a market with fewer participants on both sides rather than a broad decline in prices. Homes that sold took longer, averaging 51 days on market compared with 44 last August, but sellers still received an average 95.7% of their original asking price.

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DC Metro Area Monthly Data

AUG 2026

Sept. 2026 data will be released Oct. 12, 2026

METRIC	AUG 2026	YOY	MOM
TOTAL SOLD DOLLAR VOL	$3,975,361,184	-4.5%	-15.8%
AVG SOLD PRICE	$731,298	+2.3%	-1.4%
MEDIAN SOLD PRICE	$597,500	+1.7%	-0.4%
UNITS SOLD	5,404	-6.5%	-14.9%
AVG DAYS ON MARKET	31	+6.9%	+10.7%
AVG SP TO OLP	98.2%	+0.2 pp	-0.3 pp
ACTIVE LISTINGS	15,366	+12.9%	-1.0%
NEW LISTINGS	5,978	-3.8%	-15.9%
NEW PENDINGS	5,207	-10.4%	-10.6%
ALL PENDINGS	6,565	-5.4%	-9.1%

Sources: Smart Charts Pro

Summary

August 2026 DC Metro Summary

The Greater DC housing market also slowed in August, although the decline was considerably less pronounced than in the District. Closed sales fell 6.5% from August 2025 to 5,404, while new pending sales declined 10.4%. New listings were down a more modest 3.8% year over year.

Prices remained relatively stable. The median sold price rose 1.7% from a year earlier to $597,500, while the average sold price increased 2.3% to $731,298. Homes took somewhat longer to sell, averaging 31 days on market compared with 29 days last August, while sellers received an average 98.2% of their original asking price.

Unlike DC City, however, the broader region continues to carry substantially more inventory than it did a year ago. Active listings totaled 15,366, 12.9% above August 2025, even after slipping 1% from July. That combination of higher inventory and a 10.4% year-over-year decline in new pending sales suggests buyers across the region had more choices while demand softened heading toward the fall market.

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The Condominium Market: Washington DC’s Weakest Link

One of the biggest stories of the past two years has been the steady deterioration of the District’s condominium market. While other property types have held up better, condominiums and co-ops remain the weakest segment of Washington’s housing market and account for a disproportionate share of the city’s available inventory.

Condos are highly reactive to market and economic conditions and often show changes in buyer demand earlier than other housing types. The District’s condominium market was beginning to recover from the severe demand disruption of the pandemic when DC’s economic trajectory changed again in early 2025. Federal employment and spending uncertainty added another challenge to a market already contending with high mortgage rates and rising ownership costs. Since then, tighter condominium financing and insurance requirements have added further pressure to the buyer pipeline.

Median sold price for Condo & Coop units in August was $390,000, down 1.3% vs July, and a drop of 4.4% from Aug of 2025. Average days on market for units sold in August was 45 days, 46% above the 5-year August average of 31 days. There was a 16.9% month over month decrease in new contract activity with 951 New Pending sales; a 9.4% MoM decrease in All Pendings (new contracts + contracts carried over from July) to 1,258; and a scant 0.1% decrease in supply to 4,606 active units. This activity resulted in a Contract Ratio of 0.27 pendings per active listing, down from 0.30 in July and down from 0.38 in August of 2025. The Contract Ratio is 48% lower than the 5-year August average of 0.52.

A higher Contract Ratio signifies a relative increase in contract activity compared to supply, and indicates the market is moving in the seller’s favor.

A lower Contract Ratio signifies a relative decrease in contract activity compared to supply, and indicates the market is moving in the buyer’s favor. In this case, the contract ratio is nearly half the 5 year average.

Declining Values

So why haven’t condo prices fallen further? Part of the answer is in the math. Many condo sellers simply don’t have as much room to cut their prices. Condominiums tend to have thinner equity margins than more expensive property types, particularly when the owners purchased recently or financed with relatively small down payments.

Unlike detached homeowners who often:

• Bought years ago
• Accumulated significant appreciation
• Paid down principal
• Have flexibility to negotiate;

many condo owners:

• Purchased more recently
• Put 3–10% down
• Paid peak-pandemic prices (this is the part where you care more about what you paid for your condo than what you pay per month)
• Financed mortgage insurance
• Paid premiums on new construction
• Experienced little or no appreciation and in many cases loss
• Continue paying rising HOA dues, insurance and utility costs.

Their margins are erased, or even negative.

When prices soften, it doesn’t matter a great deal to those with 40% equity, but it is a sale-killer for others. And as inventory levels continue to rise, prices continue to lower, widening the gap between what’s owed and current market value. Even modest price declines can make it difficult to sell without bringing cash to closing, leaving some owners effectively trapped in their homes.

Washington’s condominium market has historically depended on two primary buyer groups:

The first is first-time homebuyers. Condominiums have long served as the entry point into homeownership for young professionals beginning careers in government, law, consulting, lobbying, nonprofits, healthcare, and related industries. These buyers traditionally purchase a condominium as their first home before moving up to a rowhouse or detached property;
The second is part-time or pied-à-terre buyers. Members of Congress, federal executives, diplomats, attorneys, corporate executives and other professionals have historically purchased condominiums because they wanted a low-maintenance residence close to Capitol Hill, downtown, or federal agencies. They weren’t necessarily looking for the least expensive housing, they were buying convenience, security and a lock-and-leave lifestyle.
Both groups have backed off.

Certainly the first-time buyer pool shrank because affordability deteriorated, mortgage interest rates rose, and cratering federal employment caused many younger households to search elsewhere. But also, the city’s overall desirability has suffered over the past two years. Net migration in the District was −4.1k in 2025. Fewer of the city’s new residents are entering its for-sale housing market this year.

That’s a real problem for condominiums.

Condominiums are not just another housing type in Washington. They are the foundation of the District’s homeownership ladder. When fewer buyers enter through that first rung, fewer owners move up to larger homes, reducing liquidity throughout the entire housing market.

Unfortunately, the challenges facing condominium owners are poised to become even greater.

Beginning this summer, Fannie Mae and Freddie Mac are implementing sweeping underwriting changes that will make financing more difficult for many condominium and cooperative buildings. Higher reserve funding requirements, stricter reserve study standards, lower deductible thresholds, and the elimination of limited reviews for most projects will leave many underfunded or poorly managed associations unable to meet agency standards. Buyers may not discover that a building is non-warrantable until late in the financing process, causing transactions to fail just before closing.

At the same time, the DC Council is considering the Condominium Insurance Amendment Act of 2025 (B26-0495), legislation that would substantially increase the financial exposure of condominium owners by raising deductible pass-through limits, expanding insurance requirements, and requiring broad waivers of subrogation. Although presented as consumer protection, the proposal could shift significantly more financial risk from condominium associations onto individual owners, particularly in situations where the origin of property damage is disputed, a common occurrence in multifamily buildings.

Taken together, these trends suggest the District’s condominium market is no longer facing a temporary cyclical slowdown, it’s undergoing a structural shift. A smaller pipeline of first-time and part-time buyers, rising ownership costs, tighter financing standards and additional legislative uncertainty are all reducing the buyer pool. Until that buyer pipeline begins to expand again, condominiums are likely to remain the weakest segment of Washington’s housing market, and the first place where broader economic changes become visible.

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Mortgage Rates And Impact

Septamber 2026

The Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75%–4.00% following the FOMC meeting in September, indirectly pushing average 30-year fixed mortgage rates to around 6.76%, though most mortgage lenders had already priced in the move and those who were more aggressive may actually shave rates down in the coming week.

The unanimous 12-0 vote by the Federal Open Market Committee marked the first rate increase after five consecutive meetings on hold.

How the Fed Rate Affects Housing

Fixed mortgages track long-term bond yields such as the 10-year Treasury note. When the benchmark rate rises signaling a tighter economy, bond yields and mortgage often rise in response.

Since higher interest rates raise monthly mortgage payments, many buyers take a step back from the market, impacting home sales volume.

Homeowners are also affected because borrowing costs increase overall. Home Equity Lines of Credit (HELOCs) have variable rates, as do other adjustable rate mortgages. A Fed rate hike has an immediate effect on those products.

The home building industry is also impacted. Smaller builders rely on short-term loans to build houses and higher rates means costs rise and the final project increases in price to homebuyers. An unfriendly lending environment can also deter builders altogether, slowing down the creation of new housing supply.

Don’t expect drastic price drops as a result of higher mortgage rates. The norm is for prices to flatten, or rise slowly. Sellers often choose to remain in their homes or become landlords until conditions improve.

The Fed signaled that there would be at least one more rate hike this year and nearly half the board sees at least 2 more hikes in this cycle.