03/03/2026
Here is the January Market Report, (Received 2/24/26 from DAAR) along with my key takeaways:
As we head into the spring real estate market, our review of January and early February sales and activity helps us gauge the market’s likely direction for the coming months and the remainder of 2026.
We saw a temporary slowdown in closed home sales (overall transactions) in January. This was expected, as contract activity tends to decrease at the end of November and through December, during the holidays. However, our very first sale of the year demonstrated the market's underlying strength. We listed a single-family home in Broadlands at $1,000,000 at the end of January, right after the major snowstorm. The response was immediate: over 40 showings in three days, resulting in seven offers. The house sold on 2/26/26 for $1,110,000—$110,000 over the asking price —with all contingencies, including the HOA review period, waived. Sales like this will be reflected in the market reports over the next few months. Although not all sales will do as well, Price, condition, and location are key factors in a favorable outcome.
In the January Report (Received 2/24/26 from DAAR), the most telling data point is the Pending Sales activity. This is a crucial leading indicator for sales that will close in late February and March. Overall, Pending Sales are up almost 20% year-over-year.
On the financing front, interest rates are projected to continue their moderate decline throughout 2026. While we don't anticipate a return to the 3% or 4% range anytime soon, reaching the mid-to-upper 5% range by mid- to late-year is probable. A new Fed Chair has been nominated and will most likely take office in May, which will influence future policy and more pressure for lower rates.
Sources: Virginia REALTORS®, data accessed February 15, 2026 Freddie Mac