Real Estate Market Update: March 2026

The spring market is finally taking shape, and March gave us a clear picture of where things are headed this season. While affordability has shown small signs of improvement, inventory is still catching up, and buyers are moving more carefully.

Here’s what you need to know from the March 2026 housing market and what it could mean if you’re planning a move this season.

March Housing Market Trends

There have been small improvements in housing affordability over the past month. However, inventory growth has been slow. If demand picks up and outpaces supply growth, home prices could rise.

Existing Homes

In February, existing home sales increased by 1.7% and by 1.4% over the past year, according to the National Association of Realtors (NAR). The median existing-home sales price was $398,000.

It may not seem like it, but housing affordability is improving. NAR Chief Economist Dr. Lawrence Yun pointed out that there are more than 6 million more jobs than in 2019, and wage growth is outpacing home price growth by almost 4 percentage points.

New Construction Homes

Sales of new single-family housing were at a seasonally adjusted annual rate of 587,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. This is 17.6% below the December 2025 rate and 11.3% below the January 2025 rate.

The median sales price of new houses sold in January was $400,500, which is 4.5% lower than in December. This is a great sign!

Housing Inventory

Total existing housing inventory sits at a 3.8-month supply, up 2.4% from January and 4.9% from February 2025. In the new construction market, there’s currently a 9.7-month supply at the current sales rate, which is 21.3% above the December 2025 estimate.

What does this mean? The number of homes for sale, both existing and new, continues to steadily increase.

Mortgage Rates

Mortgage rates dipped below 6% in February, but it’s a different story this month.

According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage was 6.38% as of March 26. But the good news is that rates are still much lower than they were last year, around the same time. Purchase and refinance rates are also up year-over-year, Freddie Mac pointed out.

DMV Housing Market Update

The Northern Virginia housing market is still experiencing a period of market recalibration.

Homes spent more time on the market this past month, but according to the Northern Virginia Association of Realtors (NVAR), sales remained steady, and inventory increased. Home sales increased by 3.9% in February 2025, and active listings increased 11.8% from last year. The current housing supply is 1.23, up 10% from last year.

We’re still seeing sales activity, but at a slower pace, as buyers weigh their options. NVAR CEO Ryan McLaughlin says that buyers continue to show confidence in the long-term value of owning a home in this region. Buyers also have more opportunities, with less competition than we saw several years ago.

Home prices are stable. The median sold price in February was $720,500, a 1.7% decrease from last year. Average days on market rose to 30 days, a 36.4% increase year-over-year.

McLaughlin stated that this is more of a deliberate market. Homes are selling, and sales volume continues to rise, but buyers have more time and flexibility to make a decision.

The Best Time to Sell Your Home in 2026

The best time to sell your home in 2026? It’s the week of April 12-18, according to a newly released report by realtor.com. 

This week is expected to have a balance of housing market conditions that favors sellers more than any other week of the year.

So if you’re thinking about listing, now is the time!

Here’s what you can expect if you sell this week:

• Higher sale price: Realtor.com pointed out that homes that sell this week historically sell for up to $5,300 more than the average week.

• Buyer demand: These listings get more views than a typical week. Mortgage rates are also lower than they’ve recently been, which helps!

• Faster sales: Homes sell 9 days faster than average.

• Less competition: There aren’t as many sellers in the market compared to the rest of the year.

• Fewer price reductions: You won’t see as many price reductions during this week.

There are 630,000 More Sellers Than Buyers

Redfin reported that there were an estimated 46.3% more home sellers than buyers in the U.S. housing market in February, or 629,808 more. This is the largest gap on record, dating back to 2013.

Does this mean it's a buyer’s market? According to Redfin, a buyer’s market is one in which there are more sellers than buyers. Under this definition, it’s been a buyer’s market since May 2024.

Redfin also pointed out that it’s only a buyer’s market for those who can afford to buy. The number of buyers in the market fell by 2.4% in February, while the number of sellers fell by 0.4%.

Many homebuyers have decided to sit on the sidelines due to high home prices and mortgage rates, layoffs, and economic and political uncertainty. This has also caused many sellers to retreat, with some delisting after watching their homes sit on the market, while others have decided not to list at all as nearby homes sell for below the asking price.

However, we may see more movement as we continue into spring.

Final Thoughts

Buyers have more time to make decisions, but affordability still plays a major role in who’s actively participating. Sellers are also facing more competition, which means pricing and presentation matter more than ever!

If you’re planning to buy or sell this spring, timing and strategy will make a difference. 

Looking to buy or sell in the DC area? Don’t navigate the complexities of the current housing market alone! Reach out today for expert real estate leadership.