The Northern Virginia real estate market is showing early signs of renewed buyer activity as mortgage rates moderate and policy changes point to further relief. After two years marked by high interest rates and slower sales, local agents report growing optimism as 2026 begins.
Desiree Rejeili, a 17-year real estate veteran and owner of Desiree Sells Homes LLC, has noticed a clear shift in buyer attitudes following recent policy moves. She points to the federal government’s request for Freddie Mac and Fannie Mae to purchase $200 billion in mortgage bonds, a decision intended to lower rates and stimulate demand. “I do see more buyers coming into the market, especially with the recent news about the mortgage rates,” Desiree says. “It’s giving confidence to buyers, and they’re coming out ready to buy.”
From Banking to Real Estate
Desiree’s career began in banking, where she rose from teller to vice president and branch manager at Chevy Chase Bank, which later became part of Capital One. After being laid off in 2007, she transitioned to real estate, attracted by the opportunity to work directly with people and make a tangible difference in their lives.
“I was very passionate about it and said, ‘This is my calling to go get my real estate license and start doing real estate,’” she recalls. “I haven’t looked back since.”
Now licensed in both Virginia and Maryland, Desiree has built her business through relationships with credit unions, referrals, and a strong social media strategy. She prioritizes long-term client relationships over chasing transaction volume. “I’m not one of those agents who’s motivated by a commission check,” she says. “My passion is about really helping people and making sure they get into the right home and the best deal. Even after they settle, we stay in touch.”
Market Dynamics Shift Toward Buyers
The local housing market has changed significantly over the past two years. Where sellers once held the advantage, conditions now favor buyers, with more homes available and longer days on market.
“Right now it is a buyer’s market because homes are sitting on the market for a lot longer,” Desiree observes. “Buyers can get a better deal. They can get closing costs, some wiggle room off the listed price for sure.”
Seller concessions have become more common. “I am seeing a lot of sellers now giving concessions to the buyers to get the deal done,” she explains. “That wasn’t happening back in 2021 and 2022. It was quite the opposite.”
Homes are now sitting on the market for 90 to 100 days, with repeated price reductions. “I see houses start at a million dollars, then drop to $975,000 and keep going down with four or five reductions, and the house is still sitting,” she says. This stands in contrast to the fast-paced, multiple-offer environment of the pandemic years.
Interest Rate Impact on Buyer Behavior
Higher mortgage rates have changed what many buyers can afford. Desiree offers a clear example: “What would have been a mortgage payment of $2,800 is now $4,500 for the same house. That’s a huge difference.”
This increase in monthly payments forced many would-be buyers to pause their search. “People can’t afford it, so they say, ‘I’m going to rent until the interest rates come down,’” she explains.
Now that mortgage rates have retreated to the high 5% to low 6% range—down from peaks near 8% last year—buyer interest is starting to recover. Desiree does not expect a return to the record-low rates of the recent past, but believes current levels are more sustainable. “I don’t think we’re ever going to see the 2% and 3% interest rates. I think it’s probably going to stay in the 5s, which is a great rate still, but I think we got spoiled a couple of years ago,” she notes.
Geographic Preferences and Price Sensitivity
Buyers are responding to affordability pressures by broadening their search areas and adjusting expectations. “I do see people looking further out to keep the prices down,” Desiree reports. “Going out like Winchester, maybe some people are going to West Virginia, some people from Virginia are coming to Maryland because Maryland is a lot cheaper.”
She is currently working with Northern Virginia residents who want to purchase in Maryland to get more value for their money. “They can get more house out there,” she explains.
Within Northern Virginia, certain areas remain strong. “Leesburg is a very hot market. I do see a lot of young people flocking down there, and those homes go pretty quickly,” she says. Arlington, Alexandria, and parts of Fairfax County are also attracting steady demand.
Investors are focusing on areas with growth potential. Loudoun County stands out due to ongoing data center development and infrastructure upgrades, while parts of Prince William County, such as Woodbridge and Manassas, offer more affordable entry points with good commuter access.
Evolving Buyer Preferences
The pandemic has permanently changed what buyers want in a home. “A lot of folks work from home now, so having some dedicated home office space is a must for a lot of my buyers,” Desiree notes. “Outdoor space, access to shopping, things like that are important for them.”
Buyers are also more discerning about home condition. “They want more move-in-ready homes,” she observes. “Schools are essential for a lot of people, location being close to the Metro. Buyers are becoming more and more picky for sure.”
Looking Ahead
Despite the disruptions of the past two years, Desiree is optimistic about the coming year. “I think this year is going to be a great year, and I feel like a lot of buyers are going to get back into the market. The ones that have been sitting on the sidelines, I feel they’re going to start coming out and buying homes.”
She expects the spring and early summer markets to show the most improvement if mortgage rates continue to moderate. “Once the spring market hits early summer, I think we’re going to see a change if rates go down, of course.”
The current landscape in Northern Virginia mirrors what is happening nationwide: buyers are adjusting to a new interest rate environment, and sellers are lowering expectations after years of rapid appreciation. For agents like Desiree, who navigated the slowdown, the increase in buyer activity suggests a return to more balanced conditions.
“There are a lot of people who just want to buy, but it’s just the rates,” she says. “Now that rates are starting to come down little by little, I think it’s going to really change the market a lot.”
What to Expect as the Market Rebalances
The following year, in Northern Virginia real estate, will likely be shaped by how quickly buyers return and how sellers adapt to new realities. With mortgage rates off their highs and more inventory available, buyers are regaining leverage, leading to more extended negotiations and more concessions from sellers. At the same time, many buyers remain cautious, unwilling to overpay or compromise on key features.
For sellers, this means pricing homes realistically and making necessary updates to meet modern buyer expectations. Homes that are move-in ready and well located—especially those with home office space and access to amenities—will have a clear advantage.
For buyers, the current market offers more options, less competition, and greater negotiating power than at any point in the last several years. Those able to act as rates stabilize may find opportunities that were unavailable during the frenzied pandemic market.
As the market continues to adjust, both buyers and sellers will need to stay informed and flexible. The era of rapid appreciation and bidding wars has ended for now, replaced by a more measured environment that rewards preparation and realistic expectations. The coming months will show whether this new balance leads to a sustained recovery in sales and a healthier market for all participants.
