Our best read on 2026: a slower, more balanced market than the boom years, with modest price growth, more listings over time, and more sales if mortgage rates ease.
Wondering what the housing market will look like next year? In 2025, a lot of buyers and sellers are worried about a crash, and they also don’t want to miss better timing.
Here are the three things I’d watch most closely going into 2026:
1. Home prices should grow modestly. Don’t plan on big drops or big jumps. One national forecast we follow calls for home prices to rise about 0.4% nationwide from mid-2025 through mid-2026. That’s close to flat, and nowhere near a crash.
In some areas, prices may cool a little, especially where affordability has become a problem. In other places, demand may stay strong enough to hold values up. Bottom line: I wouldn’t plan on a crash, and I wouldn’t count on another runaway price jump either. A flatter, more balanced market is the safer bet.
2. Sales could rebound if rates improve. After two slow years, there’s hope for more sales in 2026. Forecasts vary. Some call for as much as a 14% increase in home sales next year, and one puts existing-home sales up 9.6%. The common thread is that both depend on mortgage rates coming down.
“We’re likely headed into a period of more balance, where buyers and sellers both have room to act. “
If rates fall, buyers who have been priced out may be able to afford a monthly payment again. More buying power could get things moving in a lot of markets, especially for mid-priced and entry-level homes.
3. More listings, and more bargaining power for buyers, may come back slowly. Many homeowners are hanging on to the ultra-low rates they got years ago. As rates soften, more of them may be ready to list. Some forecasts expect new listings to grow gradually as that “lock-in effect” wears off.
For buyers, more homes for sale means more choices and possibly fewer bidding wars.
For sellers, it means a listing alone won’t be enough. You’ll need the right price, a well-prepared house, and some flexibility.
Our take: the 2026 housing market won’t look like the past few years, and that’s mostly good news. What matters for you is your timing, your local market, and how the national trends play out where you live.
If you’re planning to buy or sell in 2026, start with your likely timing, price range, and monthly payment. We can help you compare what waiting would cost you against listing early or moving sooner. Call, text, or message us at 888-333-4838 anytime and we’ll talk it through.
