It’s hard to believe how quickly the year flew by. As we look back, the Northern Virginia real estate market remained relatively steady throughout the year, continuing a trend we’ve seen for some time now.

Home sales stayed lower than the boom years of the early 2000s and were more comparable to levels we last saw in the mid-1990s. That may sound surprising, especially considering how much the population has grown since then. Inventory did increase slightly this year, but it remained historically low. At no point did we exceed 4,000 homes for sale across Northern Virginia, and for most of the year, available homes hovered between 2,500 and 3,000. Months of supply stayed consistently under two months – generally in the 1.5 to 1.8 range, which is a clear indicator of a strong seller-leaning market.

The upside for homeowners? Prices continued to rise, which has been great news for equity. Despite lower overall sales volume, demand remained strong, helping values trend upward throughout the year.

So, what does this mean as we move into 2026?

I expect the pace of sales to remain fairly consistent. Nationally, we’re likely to see around 4.15 million home sales, with approximately 28,000–29,000 of those sales taking place here in Northern Virginia. While that isn’t a dramatic increase, the encouraging news is that demand remains incredibly strong. We’re already seeing multiple showings within days of listings going live and busy open houses early in the year – clear signs that buyers are actively looking!

Because of this demand, well-priced, well-maintained homes that are properly prepared and staged are still seeing strong activity and, in many cases, multiple offers. As a result, home prices are expected to continue rising, though at a more moderate and healthier pace – likely in the 3–5% range, similar to what we experienced this past year.

Interest rates are projected to settle somewhere between 5.75% and 6.25%, with the possibility of briefly reaching 6.5%. I don’t anticipate rates climbing much higher than that, which should help maintain affordability and buyer confidence. With inflation expected to remain under control and potential rate reductions from the Federal Reserve, the overall market outlook appears stable rather than chaotic.

That said, I don’t foresee a major surge in inventory, which means the number of total sales will likely stay constrained by limited supply. Simply put, there are more buyers than homes available, and that dynamic isn’t changing anytime soon.

If you have questions about what this market means for you, whether you’re thinking about buying, selling, or just planning ahead, I’m always happy to help. Please feel free to call or email anytime.

Wishing you a wonderful year ahead, and I hope you enjoyed a joyful holiday season and a great start to the new year.