February 2026 Market Update

Strong Demand, Low Inventory – What to expect as we head into spring.

February kicked off the early spring selling season in Northern Virginia with a few surprises. Despite snowstorms and icy weather, the real estate market has not slowed down.

Buyer demand remains strong, driven by relatively low interest rates and a continued shortage of available homes. Well-priced properties are selling quickly, and multiple-offer situations are still very common. In many cases, homes are selling well above the list price. One recent home in Centreville, for example, received 12 offers and sold for more than $100,000 over asking, underscoring just how competitive the market remains.

You may see national headlines suggesting that home prices are declining, but that is not what we are experiencing locally. Northern Virginia continues to show resilience, supported by strong employment, desirable communities, and steady demand. Prices here are holding firm and, in many cases, continuing to rise.

On the interest-rate front, the Federal Reserve held rates steady at its most recent meeting, which was widely expected. However, several Fed officials have indicated that rate cuts could begin as early as March, with the potential for multiple cuts later this year. Even modest reductions could bring more buyers back into the market, increasing competition and impacting affordability.

You may also be hearing about the current partial federal government shutdown. The Senate has approved a spending package, and the House is expected to vote soon. The National Association of REALTORS® is urging Congress to act quickly to minimize any impact on housing. For most buyers and sellers, real estate activity is continuing largely as normal. FHA loans are still being processed, VA and USDA loans are not affected, and most closings are moving forward. Some HUD-related services may experience minor delays, particularly for specialized loan programs, but there is no widespread disruption to the local market at this time.

Inventory remains limited, while sales are up compared to this time last year – clear signs of a strong and active market. As we move further into the spring season, I expect continued competition, fast-moving listings, and strong pricing.

If you’re considering buying, selling, or simply want to better understand how these market conditions affect your plans, please feel free to reach out. Having the right strategy and guidance matters more than ever in this market.

Leave a comment