2026 Housing Market Outlook: What You Really Need to Know

by Hilary Betley

If the past few years felt like the housing market was stuck in neutral, 2026 might finally press “play” again. The forecasts suggest more movement, more opportunity—and yes, a few new puzzles to solve together.

What’s Changing (And Why It Matters)

1. More Homes Will Be Sold

A lot of potential sellers and buyers have been in “pause” mode. But many of them won’t stay silent forever. Experts expect more people to re‑enter the market in 2026.

Why? Two big drivers: mortgage rates and home prices. Let’s unpack those.

2. Mortgage Rates Are Expected to Ease—Slowly

Rates spiked earlier this year (near ~7 %), but they’ve begun to ease. Keeping Current Matters
Forecasts suggest this downward trend may continue—but not in a straight line. Think “staircase,” not “escalator.” Keeping Current Matters
If things go well, we could land in the low 6s or even high 5s by year’s end. That might not feel dramatic, but even that shift can make a meaningful difference in monthly payments. Keeping Current Matters

Bottom line: don’t expect a wild freefall, but expect more breathing room for buyers who’ve been sitting on the fence.

3. Home Price Growth = Slower, But Still Up

The national trend is toward modest price growth—not collapse. Keeping Current Matters
Some markets are already softening. But many are still net positive compared to a few years ago. Keeping Current Matters
Prices will depend heavily on local supply dynamics. In markets where inventory is tight, growth may stay firmer. In markets with more homes for sale, softness could show first.

This is good for buyers: they won’t have to worry about prices skyrocketing overnight. And they won’t have to dread steep declines, either. Steady is our friend right now.

What This Means for You (Yes, You 👇)

Buyers: If you’ve been waiting for rates to collapse before jumping in, you might wait forever. A modest dip could already shift your affordability. Let’s run the numbers for your area—see what a 0.5–1 % drop might do to the monthly payment.
Sellers: This isn’t the “sell now or crash” market. You can price smartly and still generate interest—especially if your home is in good condition and in a desirable location.
Investors / Watchers: Keep an eye on inventory. A shift from “not enough to buy” to “a little more available” can change the mood of the market faster than a rate move.