E
xperts forecast a more balanced housing market in Washington, D.C., for 2026. Listings are lingering longer and often selling below their asking price, even after recent modest rate cuts. Zillow economists predict that home values will remain largely flat in the coming years.

    Senior Zillow economist Orphe Divounguy told WTOP that this trend should benefit prospective buyers. “With slightly lower prices and a larger pool of homes on the market, buyers in 2026 will have better opportunities than they have in recent years,” he said.

    While the national market is expected to rise 1.2% in value, Zillow projects a 0.7% decline for the D.C. area in 2026. Despite the dip, sellers still stand to gain. “Most owners hold record equity—home values climbed about 31% during the pandemic—so most sellers in 2026 will do well,” Divounguy added.

    The current market differs sharply from the pandemic‑era frenzy when homes sold within hours for above‑asking prices. Lydia Benson, vice‑president and associate broker at TTR Sotheby’s International Realty, notes that homes now stay on the market for roughly 45 days, a week longer than last year and far longer than during COVID. “The market hinges on consumer confidence,” she said. “People are unsure about job security, so they’re hesitant to buy or sell.”

    After federal workforce cuts and a record‑long shutdown, confidence in the region remains low. The recent interest‑rate cuts are beginning to shift buyer behavior. Benson reports that contracts have risen 14% since last week and 3% compared to the same period last year. “Homes are moving faster than a short time ago, possibly because buyers want to settle before the new year or due to the rate cuts,” she said.

    Divounguy expects the cuts to stabilize rates in the low‑6% range, a welcome change from the volatility of recent years. Benson cautions that buyers should not expect the pandemic‑era 3%–3.5% mortgage rates again; a 5.5%–6% rate is considered favorable today. She reminds buyers that “you date the rate, but you marry the house,” and that refinancing remains an option if rates drop significantly.

    For those currently searching, Benson advises: if a home resonates with you and fits your long‑term vision, purchase it if you can afford it. Both Benson and Divounguy agree that the market is not dead; it has become healthier and less volatile over the past half‑decade.