Why 2026 Could Finally Bring a More Active—and Affordable—Housing Market

After a couple of years where the housing market felt stuck in neutral, 2026 may be the year things shift back into gear. Expert forecasts show that more people are expected to move, signaling a healthier, more active real estate landscape. If you’ve been waiting for the right time to buy or sell, the conditions shaping up could finally open the door for you.

Below, we’ll break down the two major trends driving the shift: mortgage rates and home prices.

More Homes Will Sell in 2026

Over the past few years, affordability challenges led many would-be movers to hit the pause button. But that pause won’t last forever—people will always have reasons to move.

Real estate experts anticipate more activity in 2026, fueled largely by two major factors:

• Mortgage rates that continue to ease

• Moderate—yet steady—home price growth

Let’s take a closer look at what’s expected.

Mortgage Rates Could Continue to Ease

For most buyers, mortgage rates have been the biggest hurdle. After peaking near 7% earlier this year, rates have finally begun to ease. There’s a common saying in real estate:
“When rates go up, they take the escalator. When they come down, they take the stairs.”

In other words, declines happen slowly and often unpredictably.

What to Expect in 2026

Experts predict:

• Moderate improvement in mortgage rates over the next year

• Continued volatility as economic data shifts

• A potential dip into the low 6% range—or even the high 5s

Even small declines matter. Compared to the 7% highs we saw earlier, current rates already translate into hundreds of dollars saved each month for future homeowners. That relief can make a meaningful difference in affordability.

Home Price Growth Will Be Moderate

What about home prices? On a national level, forecasts suggest continued growth—but at a slower, more sustainable pace.

Here’s why:

• As mortgage rates ease, more buyers re-enter the market.

• Increased demand helps support home values.

• Price drops are expected to remain localized—not widespread.

Some markets are already seeing slight declines, but a major crash is not on the horizon. Even in areas where prices have softened, values remain significantly higher than they were just a few years ago.

Local Markets Will Vary

Price trends will depend heavily on:

• Local inventory levels

• Regional job growth

• Housing supply and new construction

But overall, experts agree: national home prices will keep rising at a healthier, steadier pace. This predictability helps buyers plan and budget with more confidence.

Bottom Line

After a quieter stretch for real estate, 2026 is shaping up to be a year of opportunity. With home sales projected to rise, mortgage rates trending lower, and home price growth stabilizing, the housing market is poised for a meaningful shift.

So the big question is—will 2026 be your year to make a move?

If you’re thinking about buying or selling, now is the time to prepare.
Connect with my team today and let’s get you ready for what’s ahead.