Real Estate Market Update: June 2026

It's a tale of two housing markets. Higher-income buyers continue to put upward pressure on home prices, while many first-time and moderate-income buyers are still struggling with affordability. 

Here's what you need to know from the June 2026 housing market.

June Housing Market Trends

We’re finally seeing some momentum from the spring market!

Existing Homes

Existing home sales saw a 3.2% jump month-over-month and year-over-year in May, according to the National Association of Realtors (NAR). 

This is terrific news! NAR chief economist Dr. Lawrence Yun noted that this is the highest level since December, with improvements in affordability largely driving the momentum. Income gains are also outpacing home price growth in most areas of the country.

Despite the median home price reaching $429,300, Yun said this means homeowners are also on solid financial footing.

New Construction Homes

While the existing home market is doing well, new construction dipped. 

Sales of new-built single-family homes fell 7.3% in May, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales is down 6.8% from last year.

Builder sentiment has declined. Despite incentives and pricing adjustments, many are still priced out of the housing market. As of May, the median new home sale price was $424, 900, up 2% from April and unchanged from a year ago.

Housing Inventory

Total existing inventory is up 3.3% from April, and up 0.6% year-over-year, according to NAR. There’s currently a 4.5-month supply of unsold housing, slightly down from 4.6 months a year ago.

NAHB reported that new construction is down 1.4% from a year ago, with a 10.3-month supply at the current building pace. There were 115,000 ready-to-occupy homes in May, the same as last year.

Mortgage Rates

The average 30-year fixed-rate mortgage has been stable over the last six weeks. As of June 25, the average rate is 6.49%, according to Freddie Mac’s Primary Mortgage Market Survey. Last year at this time, it was 6.77%.

Purchase activity has eased while refinance activity has picked up. Freddie Mac noted that this trend shows borrowers remain highly responsive to even modest changes in mortgage rates.

DMV Housing Market Update

Despite challenges and economic pressure, the D.C. metro area has remained stable. 

According to the Northern Virginia Association of Realtors (NVAR), the strong spring momentum has continued into the summer housing market, with May posting double-digit increases in both closed sales and sold dollar volume in Northern Virginia.

The median sold price reached $812,012, up 2.9% from last year. The pace of appreciation has slowed down, but home values continue to trend upward. Well-priced homes have attracted plenty of buyer interest, with homes spending an average of 15 days on the market.

The Northern Virginian housing inventory sits at around 1.93 months, down 1.2% from last year. This is well below what’s normal for a balanced market, which is generally around 6 months.

Looking at the greater metro area, demand still outpaces supply in many local markets. Homes have also been selling even more quickly, with the typically single-family detached home selling in just six days, according to Bright MLS,

Bright MLS called it a tale of two markets. Higher-income buyers are putting upward pressure on the single-family market. Inventory is still low, and prices continue to rise. There are fewer first-time and moderate-income buyers shopping around right now. However, those who are looking to buy are having better luck in the townhome and condo markets.

Save $25K By Buying a New Construction Home

Purchasing new construction often costs more than purchasing an existing home, but it can actually be cheaper over time. According to Realtor.com, new home buyers can expect to save an average of $25,335 over 10 years compared with buyers of 20-year-old homes. This is because of lower utility bills and fewer major system replacements.

It also depends on where you buy.

In Massachusetts, buyers could save nearly $39,000 during that time. In 16 of the country’s biggest metros, the savings are big enough to close the gap between the median new construction listing and the median existing home.

The listing price isn't always everything. Buyers need to consider which other expenses affect the total cost of homeownership. And with new construction, homes often have more efficient heating and cooling systems, better windows, better insulation, and newer major systems and components.

For example, a new HVAC system could cost as much as $22,000, according to Angi. And that’s just one system. Depending on the home's age and condition, it could be more.

D.C. Condo Owners Become Reluctant Landlords

According to Axios, condo owners across the D.C. area are facing a difficult decision. With condo sales at their lowest level in a decade, based on year-to-date data from Bright MLS, many homeowners are choosing to rent out their units rather than sell at a loss.

Several factors have contributed to the slowdown, including higher mortgage rates, rising condo fees, and a growing preference for renting over buying. While the condo market has been slower than the single-family home market, sales have gradually improved each month this year.

For buyers, this could mean more opportunities to negotiate on condos than in other market segments. However, buyers should also think long-term. If you plan to stay put for several years, find a condo you love and make sure you aren’t overpaying.

Final Thoughts

We’re still working toward balance. Although Redfin pointed out that the spring market ended with a whimper, it’s still a buyer’s market in much of the country. This means house hunters may be able to negotiate prices down. In May, nearly half of home sellers gave concessions to buyers.

Some homes and regions are still highly competitive – like the DMV – and the homes in the most sought-after neighborhoods in the best condition have seen bidding wars.

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.