Washington DC Real Estate Market 2026: A Score of 90 While Prices Fall

PropertyIQ scores Washington DC a 90 out of 100 as of February 28, 2026.

Prices are down 5.17% year over year as of February 2026. Inventory is up 21% year over year. Yet the score is 90. Understanding that gap is the most useful thing you can take from this market.

The Score Is Measuring Demand Execution, Not Price Trajectory

The pending-to-active ratio is 0.6211 as of February 2026 — 62% of active listings are under contract. Homes average 38 days on market. The sale-to-list ratio is 100% as of November 2025. Home sales volume is up 5.67% year over year.

These are not the metrics of a collapsing market. Buyers are still transacting. The score reflects that active demand picture, not the fact that list prices have come down from prior peaks.

The Affordability Gap Is Wide

Median household income: $123,896 (2023 Census). The income needed to buy at the current median listing price of $550,000 is approximately $146,188 as of February 2026. A median-income DC-area household is about $22,000 short of qualifying at median price — even in one of the highest-income metros in the country.

The Zillow median home value is approximately $572,590 as of January 2026. The metro is 30.8% overvalued relative to local fundamentals as of February 2026.

Inventory Is Expanding

There are 9,865 homes for sale in the Washington DC metro as of February 2026 — in a region of over 6.2 million people. That ratio is tighter than it sounds, but inventory is up 21.06% year over year. New listings are also up 11.77% year over year. More supply is entering the market at the same time prices are declining.

Price cuts affect 9.75% of listings as of February 2026 — below the national norm but up from prior periods.

The Economic Foundation

Unemployment: 3.8% as of December 2025 — below the national average. The DC metro's employment base is anchored by federal government, defense contracting, consulting, healthcare, and technology. Average rent is approximately $2,338/month as of December 2025.

Zillow forecasts 0.3% near-term appreciation as of December 2025 — essentially flat. Five-year home value growth is 11.68%.

What the Score Means Here

A score of 90 in this context means demand is holding against expanding supply. It does not mean prices are poised to rise. The combination of rising inventory, declining prices, and a wide affordability gap suggests a market in transition — buyers gaining leverage slowly, sellers adjusting to new reality.

The 38-day median days on market and 62% pending ratio confirm that well-priced listings still move. Overpriced ones are getting cut.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Rent and forecast data as of December 2025. Census and economic data 2023-2025. All data for informational purposes only.