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Are you asking yourself whether it’s smarter to move now or wait until 2026? That’s one of the biggest questions I’m getting from both buyers and sellers right now. Everyone wants to know where the market is heading and what to expect in the next year. After studying the latest data and seeing what’s happening in real neighborhoods every day, here’s what I believe the housing market will look like in 2026.
1. Modest growth and a more balanced market. Most reports I follow suggest modest growth in 2026, not a boom or a bust. In fact, some economists are predicting up to a 14% uptick in home sales next year if interest rates keep trending downward.
At the same time, the market is finally becoming more balanced. Inventory has increased, which means buyers now have more opportunities than they did a year ago. But that also means sellers are having to adjust their expectations. In some neighborhoods, over 50% of homes for sale have had price reductions to attract offers. The frenzy of the past few years is easing, and we’re settling into a more realistic, stable market.
2. Interest rates and affordability will drive activity. Two key factors continue to shape the market: interest rates and affordability. High rates have kept many buyers on the sidelines, but recently, we’ve seen a small decline that’s already encouraging people to re-enter the market. If rates continue to drop, more buyers will jump in, creating fresh momentum for 2026.
For sellers, improving rates can also be a win. Even if home prices aren’t soaring, those selling and buying again could come out ahead because better loan terms on their next home can offset lower sale prices.
3. Many homeowners are staying put for now. One reason inventory hasn’t surged faster is what’s known as the “lock-in effect.” Many homeowners have ultra-low mortgage rates from past years, often around 3%. I’m one of them; my own mortgage is at 3⅜%, and I understand why most people don’t want to give that up.
That’s why many are choosing not to sell unless they have to. Life events like job transfers, divorce, or inheritance are the main reasons people are listing their homes right now. Otherwise, most are holding on to their favorable rates.
4. Why 2026 could bring new opportunities. When you look at the full picture, the 2026 housing market is shaping up to be steady and full of opportunity.
- Inventory is rising, giving buyers more leverage and options.
- Rates are easing, helping affordability.
- Sellers are adjusting, which is bringing more realistic pricing.
While sellers might not get record-high prices, they could benefit when they move on to their next property in another market. The balance we’re seeing now is healthy and it’s creating better conditions for both buyers and sellers.
If you’re wondering how these trends could impact your plans, I’d be happy to talk through your specific situation. I’m helping buyers and sellers every day navigate this changing market and reach their goals. Feel free to send me a message at will@fendonproperties.com anytime to start planning your next move for 2026.
