The District of Columbia’s residential property market has entered a transitional phase as of 2026, after many years of price growth unprecedented in history and an increasing number of competitors. As the number of sales decline, the number of days listings remain active increases, and prices moderate — what was historically a strong seller's market is transitioning into a buyer's market where buyers can negotiate, complete due diligence (inspect), and take their time making a purchase decision — all of which were impossible during the pandemic induced frenzy of homebuyers.

This report will assess whether the current market represents a viable buying opportunity or if we should be cautious with our purchasing decisions based on: 1) forecasted price data; 2) uncertainty about federal job markets; 3) migration trends; and 4) differences within the DMV. The report aims to provide a realistic view of who would benefit most by purchasing a property in 2026. Although there are still significant risks related to government policies and over-saturation of the urban condominium supply chain, motivated sellers, high levels of homeowner equity, and the normalization of the housing market could create a rare window of opportunity for those who are willing to commit to the long-term future of Washington D.C.'s unique economic and governmental ecosystem.

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