2026 Real Estate Market Forecast

After several years of a stagnant housing market, 2026 could mark a turning point. Experts predict increased movement, with more people ready to make a change—potentially creating new opportunities for you as well.

More Homes Expected to Sell
In recent years, affordability challenges have kept many potential buyers and sellers on the sidelines. However, that standstill won’t last forever. Life events and changing needs continue to drive people to move, and industry forecasts suggest that 2026 will see a noticeable rise in housing activity (see graph below).

What’s driving this shift? It comes down to two main factors: mortgage rates and home prices. Let’s explore the latest expert predictions for both to understand why more people are likely to make a move in the coming year.

Mortgage Rates May Keep Declining
For most buyers, lower mortgage rates have been the top priority. After reaching nearly 7% earlier this year, rates have finally begun to drop.

Current projections suggest this downward trend could continue into 2026, though it may fluctuate along the way (see graph below).

There’s a saying that goes, “When rates rise, they take the escalator—but when they fall, they take the stairs.” That’s a good reminder that the process of lowering rates tends to be gradual and uneven.

You can expect modest improvements in mortgage rates over the next year, but some fluctuations are likely as new economic data emerges. The key takeaway is that the overall trend points toward a gentle decline. Experts predict rates could dip into the low 6% range—or possibly even the high 5s.

Keep in mind, even small rate drops can make a noticeable difference. Compared to when rates were around 7% earlier this year, today’s lower levels already translate to significant savings on monthly mortgage payments—boosting affordability for many potential buyers.

Home Prices Expected to See Steady, Moderate Growth
So, what’s the outlook for prices? Nationally, experts predict they’ll continue to rise—but at a slower, more balanced pace. As mortgage rates ease from their earlier highs, more buyers are expected to return to the market. This renewed demand will keep some upward pressure on prices and help prevent any major declines.

While a few areas may experience small price dips, there’s no indication of a widespread crash. In fact, thanks to the substantial gains of the past five years, most markets remain well above their pre-pandemic levels.

Of course, price movement will vary depending on local conditions, particularly housing supply. Some regions with tighter inventory may see stronger appreciation than others. Still, overall forecasts point to moderate price growth nationwide (see graph below).

This is another encouraging development for buyers and overall affordability. Although home prices are expected to keep rising nationwide, the pace will be far more manageable. That stability allows for better budgeting and provides reassurance that prices aren’t likely to surge unexpectedly.

Bottom Line
After a relatively slow period, 2026 is shaping up to be a year of renewed activity and opportunity. With home sales projected to climb, mortgage rates gradually easing, and price growth stabilizing, the market appears headed toward a healthier, more balanced phase.

The real question is—will you be among those making a move in 2026?
If you’re thinking about it, now’s the perfect time to connect with an agent and start preparing.