DC Area Housing Market Update, September 2026: Bigger Supply, Lower Sales, Prices Largely Stable

The DC-area housing market is slowly shifting in buyers' favor. In Montgomery, Howard, Frederick, Anne Arundel, and Prince George's counties, as well as Washington DC and Northern Virginia, listings are growing while fewer homes are closing than a year earlier. Even so, median sold prices remain within about 4 percent of last year's marks. This is a cooling off of an overheated market, not a collapse, and the impact varies by county.

Key takeaways

• Inventory is up. Active listings are 14% to 23% above last September in Montgomery, Anne Arundel, Prince George's, Frederick, and Northern Virginia.
• Sales are down. In August, six of the seven markets recorded fewer closed homes than a year earlier. Howard County is the exception.
• Prices are holding. August median sold prices ranged from 1.7% lower to 4.0% higher than last August.
• Washington DC is the softest market, with 4.4 months of supply and homes taking 52 days to sell.
• Howard County is the tightest, with 1.4 months of supply and a 22-day average sale time.

DC area home sales and prices: August 2026 vs. August 2025

*Northern Virginia includes Alexandria, Arlington, Fairfax, Falls Church, Loudoun, Manassas, Manassas Park, and Prince William.

Housing inventory is climbing across the region

The latest reading, dated September 21, places inventory at its highest level in at least 13 months in five of the seven markets:

• Northern Virginia: 6,523 active listings, up from 5,405 a year ago
• Montgomery County: 2,732, up from 2,267
• Prince George's County: 2,631, up from 2,227
• Anne Arundel County: 1,755, up from 1,430
• Frederick County: 952, up from 833

That increase also shows up in months of supply, which estimates how long current inventory would last at the recent sales pace. Montgomery County stands at 3.4 months, up from 2.6. Northern Virginia and Anne Arundel are both at 2.8, compared with 2.1 and 2.0. A common benchmark treats about 5 to 6 months of supply as balanced, so most of the region still leans toward sellers. It is simply less one-sided than before.

Are DC area home prices falling?

Not in any material sense. What we're seeing is the usual retreat from spring peaks. Northern Virginia's median sold price hit $750,000 in April, May, and June, and homes were selling in as little as 16 days in May. By August, the median had dropped to $710,000 and the typical sale needed 26 days. Montgomery County moved from a $690,000 median in May to roughly $640,000.

The more useful comparison is year over year for the same month, since that strips out seasonality. On that measure, prices are essentially unchanged. The real shift is in market balance: more listings are chasing fewer buyers.

Howard County housing market: the outlier

Howard County remains the region's most competitive market. It has 1.4 months of supply, homes are selling in 22 days, and closed sales climbed nearly 11 percent. The driver is a lack of sellers. New listings in August totaled 350, down almost 13 percent from 401 a year earlier. The median sold price fell 1.7 percent, but median price is also shaped by which homes happen to close in a given month, so it should be interpreted with the other measures.

Washington DC housing market: the softest in the region

DC saw the sharpest slowdown. Closed sales were down almost 21 percent, and signed contracts declined by the same measure. The average home took 52 days to sell, up from 46. Even so, the median sold price increased 3.4 percent, suggesting a standoff: sellers are holding firm while buyers are less willing to agree.

Two caveats about the DC figures. September's 7.3 months of supply comes from a partial month, so August's 4.4 is the cleaner reading. Also, DC's 12-month average sold price of $917,381 is well above its $675,000 median because expensive sales lift the average. For a typical transaction, the median is the better reference point.

Prince George's, Frederick, and Anne Arundel counties

Prince George's County is the region's least expensive market, with a $445,000 median, and it is also the slowest-moving suburb. Homes averaged 38 days to sell, up from 32, and months of supply reached 3.4.

Frederick County illustrates the trade-off between pricing and patience. The median rose 4 percent, yet cumulative days on market, which includes relistings, increased from 44 to 54. Some properties are lingering or being relisted before they finally close.

Anne Arundel County offers a clear picture of the transition: inventory up 17 percent, closed sales down 10 percent, and a median price up 1.3 percent to $507,000.

What contracts signed suggest for fall

Pending sales typically lead closings by about a month. In August, contracts signed were down roughly 21 percent in DC, 19 percent in Montgomery County, 12.5 percent in Anne Arundel, and 9 percent in Northern Virginia. Frederick and Prince George's were flat to slightly higher. Expect closed sales in DC and Montgomery County to remain soft into early fall.

What it means for buyers and sellers

Buyers now have more selection and more breathing room than they did a year ago, particularly in DC, Prince George's County, and Montgomery County. Days on market and price history are useful negotiation points. In Howard County, competition is still likely to be fierce.

Sellers can still look for solid prices, but a hopeful list price is no longer enough. With more homes on the market, the quickest sales go to properties priced properly from the start. The gap between average and cumulative days on market in Frederick, Prince George's, and DC shows what happens when homes are missed on pricing.

Frequently asked questions

Is it a buyer's market in the DC area?

Not across the board. Most of the region sits between 1.4 and 3.4 months of supply, which is still below the 5 to 6 months generally used to define balance. Washington DC, at 4.4 months, is the closest to equilibrium.

Which DC-area county has the hottest housing market?

Howard County, with 1.4 months of supply, average sale times of 22 days, and rising closed sales.

Which area has the most negotiating room for buyers?

Washington DC and Prince George's County have the slowest pace of sales and the highest months of supply.

Will home prices drop this fall?

So far, the data does not point that way. August medians were within about 4 percent of last year in every market. The drop in contracts in DC and Montgomery County is something to keep an eye on.

Want a read on your specific neighborhood or price range? Get in touch for a local breakdown.

Source: Bright MLS, residential sales data for August 2025 through August 2026, reports run September 21, 2026. September figures are month-to-date and are used only for inventory snapshots. Data are deemed reliable but not guaranteed. Figures include single-family homes, townhomes, and condos, and county averages can mask wide differences by neighborhood and property type.