Washington D.C. Real Estate Market Update January 2026
Should you sell now or wait? Here’s what the numbers are really saying.

If you are a homeowner in Northern Virginia trying to decide whether to list now or hold off, the January numbers offer important insight. The market has shifted compared to last year, but it has not stalled. Understanding what changed, and why it matters, is the key to making a confident decision.

Let’s break down January 2026 compared to January 2025 and what it means for you as a seller.

WASHINGTON, DC JANUARY MARKET UPDATE:

JANUARY 2026
Total # Homes Sold: 336
Avg. Sold Price: $886,210
Days on Market: 63

JANUARY 2025
Total # Homes Sold: 475
Avg. Sold Price: $870,699
Days on Market: 58

What’s Happening in the Washington D.C. Housing Market?

1. Sales Volume Has Decreased

In January 2025, 475 homes sold across Washington D.C. In January 2026, that number dropped to 336. That is a noticeable decline in transaction volume.

This signals that buyer activity has slowed. Fewer contracts mean buyers are being more selective, often due to affordability, financing costs, or economic uncertainty.

However, 336 homes still sold in one month. There are active buyers in neighborhoods such as Capitol Hill, Navy Yard, Dupont Circle, and Petworth. The demand is simply more intentional.

2. Average Sold Prices Increased

Despite fewer sales, the average sold price rose from $870,699 in January 2025 to $886,210 in January 2026.

This is a critical insight for sellers. While volume has softened, pricing has remained resilient. Well positioned homes are still commanding strong values in the D.C. market.

3. Homes Are Taking Longer to Sell

Days on market increased from 58 days to 63 days. That five day shift may seem small, but it reflects a broader trend. Buyers are taking more time to evaluate options and negotiate.

This is not a rapid fire seller’s market. It is a strategic market.

What This Means for Pricing Your D.C. Home

The increase in average price can create false confidence. Some sellers assume that because prices rose year over year, they can stretch pricing.

That approach is risky in today’s Washington D.C. housing market.

With fewer overall buyers, pricing precision matters more than ever. Overpricing often leads to extended time on market, which weakens negotiating power. Buyers begin to question why a property has not sold.

Homes that are aligned with current comparable sales, not aspirational pricing, tend to attract stronger early activity and cleaner negotiations.

What This Means for Timing

Many sellers are wondering whether waiting for more buyers to return later in 2026 will lead to better results.

The challenge is that if demand strengthens, inventory often increases as well. More listings create more competition.

Selling now may mean navigating a smaller buyer pool, but it may also mean standing out more. Timing decisions should be based on your equity position, next move, and neighborhood level trends rather than broad headlines.

In Washington D.C., micro markets matter. Conditions in Georgetown may differ from Brookland or Shaw. Hyperlocal analysis is critical.

Common Mistakes Washington D.C. Sellers Are Making

  1. Pricing based on last year’s activity instead of current buyer behavior

  2. Ignoring the increase in days on market

  3. Assuming rising averages guarantee top dollar

  4. Underestimating negotiation leverage buyers currently hold

  5. Waiting for “certainty” instead of evaluating real data

The Washington D.C. real estate market in January 2026 is not declining, but it is more balanced and deliberate than January 2025.

Is Now a Good Time to Sell in Washington D.C.?

The data shows fewer transactions, slightly longer selling timelines, and higher average prices. That combination can work in your favor if you approach the market strategically.

If you are unsure whether to sell now or wait, clarity around your specific property, neighborhood, and goals makes all the difference.

We cover this in depth at our Home Seller Workshop | Every Fourth Tuesday of the Month @ 7 PM. It is designed to help you understand your options, avoid costly mistakes, and build a strategy that works in today’s market. If clarity is what you are looking for, this is the next best step. Don’t miss out on this incredible opportunity! You can sign up to attend HERE.

Your Price is Our Promise®. Your Home SOLD 100% of the Asking Price, or We Will Pay You the Difference! Call us at 202-759-1266 or visit us HERE.