DC Real Estate Market Update
MAY 2026
💡 ONE THING TO KNOW THIS MONTH
With fixed mortgage rates climbing to a seven-week high, adjustable-rate mortgages are surging in popularity — now accounting for the highest share of applications in months. If you’re buying this summer, it’s worth a conversation about whether an ARM fits your timeline. We put together a simple ARM-explainer. Reach out to our Buyer Team if you’d like a copy to get you started!
The spring sprint we tracked in April delivered real results — and May showed a market that’s recalibrating after a burst of activity.
RATES DROPPED THIS WEEK — AND THE TIMING MATTERS. The 30-year fixed dropped to 6.48% today, and Freddie Mac notes pending home sales have risen three months straight. Buyer demand is latent and rate-sensitive — this week’s dip could offer the kind of moment that moves people off the fence and into the market.
A few things to note looking back at April:
- In 20002, you’re getting more per dollar. Price per sq ft was down 4.7% ($503 vs. $528 last year). Homes are still moving fast (13 days median, down from 17), but that per-sq-ft dip is real value for buyers who move decisively. Pending sales surged 40%, and inventory is down 19.4%. Less competition, strong demand — a well-prepared home priced correctly is not sitting.
- In 20003, act fast or lose it. Median sold price jumped 21.1% to $1,020,000 and homes are selling in 9 days on average. New listings are up 16.1% — more options are coming to market — but many are being absorbed quickly.
- Homeowners, your equity position is likely stronger than you think. Even with the YoY dip, values remain well above pre-pandemic levels. If you bought five or more years ago, the numbers likely still work in your favor. A quick consultation costs nothing.
The theme heading into summer: precision matters more than ever. A well-prepared, well-priced home is still moving quickly, especially in 20003.
Want to know how these trends affect your price point or neighborhood?
Call or text 202.243.7707 for a free consultation—book a time with one of our Buyer Experts or our Listing Team to map out your spring strategy.
We’ll share our Real Know-How to help you make the right next move!