May 2026 Market Report: Rates Are Back Up. Is the DC Housing Market Still Climbing?
The spring market is ending. Rates have crept back up. The Fed has a new Chairman. Oil prices are up. The market is dealing with a lot right now.
So the question on everyone's mind: are home prices in the DC metro area going to keep climbing?
We cover all of it in our full May 2026 Market Report. Watch it here:
| 👉 Watch the May 2026 DC Metro Market Report
Â
What are mortgage rates doing right now in 2026?
The national average 30-year fixed mortgage rate sits at 6.46% according to Bankrate. That number has climbed back up after dipping earlier in the year, and it is understandably frustrating to watch.
But context matters. That rate is about a half point lower than it was a year ago, when buyers and sellers were still very active throughout the DC metro area. The market is in a better relative position than it was twelve months ago, even if rates do not feel that way.
Most analysts expect rates to trend lower over the course of 2026. How quickly and how far will depend on oil prices, what continues to unfold in the Middle East, and decisions coming out of the Federal Reserve under its new Chairman. There are real unknowns. What we can tell you is that our clients are regularly seeing better rates than the national average, and buyers who qualify for our rate buydown programs are seeing numbers in the high fives.
In the video, we walk through what rates mean for your purchasing power right now and how to explore your options with one of our preferred lenders.
Are home prices in the DC metro area still going up?
Yes. Across every property type — detached homes, row homes, townhomes, condos, and co-ops — median sale prices in the DC metro area continue to climb. Price per square foot is moving in the same direction across all five categories.
Some categories have flattened slightly over the last twelve months. But here is what that context actually means: every one of those property types is selling at higher prices today than it was five years ago, when rates were at record lows and the seller's market was at its peak. That is a significant and underreported story.
We talk to people every day who have the opposite impression, shaped by a neighbor's sale or a national headline. The local data tells a different story. We cover it fully in the report.
How much has DC metro home sales volume changed in 2026?
Total sales volume is down significantly from the 2021 peak. New listings in the DC metro area have dropped from roughly 10,000 per month in 2021 to about 5,000 per month today. Closed sales have followed a similar path.
But here is what most people do not realize: the percentage of listed homes that actually sell has barely moved. In 2021, 83 out of every 100 listed homes sold. In 2025, it was 86 out of every 100. So far in 2026, that ratio is holding in the same range.
Fewer homes are being listed. Fewer are selling. But the probability of a listed home selling is essentially unchanged. Volume is down. Efficiency is not.
Is the DC area a buyer's market or seller's market in 2026?
It depends on where you are and what you are buying or selling.
Months of supply across the DC metro has risen from about one month in 2021 to somewhere between two and three today. For reference: below one month is a red hot seller's market. Between one and two is still a seller's market. Between two and three is a balanced market. Above three, you are in buyer's market territory.
For detached homes and townhomes, the market remains in seller to balanced territory. Condos are a different story. Condo inventory has pushed into buyer's market territory across much of the metro area. The market has slowed. Objectively, it is still a strong market. But the old assumptions no longer apply equally across property types.
We walk through exactly where each category stands in the full video.
Why does the micro market matter more than the DC metro average?
This is the most important point in every report we publish, and it is worth saying clearly: the metro-wide average is a starting point. It is not the number that determines your strategy.
Here is a concrete example. In AU Park, detached home inventory has sat below one month of supply across nearly every data point of the last five years. That is a red hot seller's market. Buyers should expect competition, multiple offers, and prices that continue to climb. Sellers are in a very strong position.
In Trinidad, condo inventory sits at 11 months of supply. Meaning: at the current pace of buyer activity, it would take 11 full months to sell through the existing inventory with no new listings added. That is a genuine buyer's market. Sellers in that situation face real headwinds. Buyers have real leverage.
Same metro. Same month. Two completely different markets.
This is why the first thing we want to know when you reach out is not "what's the market doing" — it's your neighborhood and your property type. That is where the actual answer is. We go deeper on this in the video.
Watch the Full May 2026 Market Report
The highlights above are a starting point. For the full context, the data visuals, and a clear explanation of what all of this means for your specific situation, the video goes much further than we can here.
Final Thoughts
Rates are up. Volume is down. But prices are still climbing, and homes are still selling at the same rate they always have. The opportunity right now, whether you are buying or selling, comes down to understanding your specific neighborhood and property type.
Before you make any decisions, take a few minutes to watch the full May market report and get the complete picture.
If you or someone you know is looking to buy, sell, rent, renovate, or refinance anything residential in the Washington, DC metro area, reach out for a free consultation. We would love to be a resource.
Check out this article next
