The 2026 Housing Market Outlook: A New Era Begins
The U.S. housing market is entering a fresh chapter — and our 2026 Housing Market Outlook is here to help you navigate what’s ahead with clarity and confidence. After four years shaped by pandemic-driven extremes, we’re finally seeing signs of balance return.
From frozen migration to rapidly shifting mortgage rates and major affordability hurdles, the early 2020s delivered a market unlike anything we’d seen before. But as we move into 2026, a new, more “normal” housing landscape is beginning to emerge.
What’s Changing in 2026? A More Stable Market Takes Shape
This next phase marks a meaningful step toward stability. Home sales are expected to grow again, affordability begins to improve, and the dramatic swings of recent years are starting to fade. Mobility is slowly increasing, inventory is normalizing in many regions, and both buyers and sellers are recalibrating their expectations.
In short: 2026 brings the return of predictability — and opportunity.
Four Key Signals to Watch in 2026
1. Inventory Expands
Buyers may finally feel some relief.
National inventory is projected to grow by 10%, bringing more options to the market and helping ease affordability pressure.
2. Home Prices Level Out
Home prices are expected to rise only modestly — around 0.5% — while incomes grow faster.
This dynamic supports improved affordability and creates a more balanced environment for buyers and sellers.
3. Mortgage Rates Stabilize
After years of volatility, mortgage rates are expected to settle into a 5.9%–6.9% range, averaging around 6.4% for the year.
A more predictable rate environment helps buyers plan and finance with greater confidence.
4. Home Sales Increase
With inventory rising and rates easing, home sales could reach 4.25 million, a 5% increase from 2025.
More buyers are likely to re-enter the market as conditions become more favorable.
A New Era of Opportunity
Improving affordability, increasing home sales, and a shift toward steadier market conditions signal that 2026 may be one of the most opportunity-rich housing years we’ve seen in some time.
Whether you’re planning to buy, sell, or explore your options, the trends are moving in a direction that supports clearer decision-making and greater confidence.
Your Local Market Expert for 2026 and Beyond
As your trusted real estate advisor, I’m here to help you navigate this new housing era with insight, strategy, and a deep understanding of our local market.
If you’re considering a move in 2026, now is the perfect time to start planning.
Explore the full 2026 Housing Market Outlook and let’s talk about your next steps.