2026 Housing Market Outlook

After a few years where the housing market seemed stuck in neutral, 2026 could finally be the year things pick up again. Experts are predicting that more people will be ready to move — and that could create new opportunities for you, too.

More Homes Expected To Sell
Over the past few years, many potential movers hit pause because of affordability challenges. But that pause can’t last forever — life happens, and people still need to relocate. Experts believe more of those moves will start happening in 2026 (see graph below):

What’s driving this change? Two major factors: mortgage rates and home prices. Let’s take a look at what experts are forecasting for both.

Mortgage Rates May Continue To Ease
One thing nearly every buyer has been hoping for is lower mortgage rates. After peaking around 7% earlier this year, rates have already started to come down — and that trend may continue into 2026 (see graph below):

As the saying goes: when rates go up, they take the escalator — but when they come down, they take the stairs. In other words, the path to lower rates will be gradual and sometimes uneven. Expect slight, steady improvements through next year, with some ups and downs along the way as new economic data comes out.

Even modest declines can make a noticeable difference. Compared to when rates were around 7%, today’s lower rates already mean hundreds of dollars in monthly savings for many buyers. That can make a real impact on affordability.

Home Prices Will Rise at a Steady Pace
What about home prices? Nationally, they’re projected to keep rising — just at a more moderate rate. With mortgage rates easing, more buyers will re-enter the market, which will keep demand strong enough to prevent major price drops.

While a few markets may experience slight declines, there’s no sign of a major crash. In fact, even areas seeing small dips are still up compared to several years ago.

Price trends will vary by location, depending on local inventory and demand, but overall, experts expect modest national appreciation (see graph below):

This moderation is actually good news. A steadier, more predictable rate of price growth makes it easier for buyers to plan — and gives more confidence that prices won’t spike overnight.

Bottom Line
After a slower stretch, 2026 is shaping up to be a year of renewed movement and opportunity. With sales likely to increase, mortgage rates easing, and price growth leveling out, the housing market could be headed toward a healthier balance.

So, the real question is: will 2026 be your year to make a move?
Connect with a trusted agent now to start preparing.