Updated about 1 month ago on . Most recent reply
2026 U.S. Housing Market: What Can We Expect
๐๐๐๐ ๐.๐. ๐๐จ๐ฎ๐ฌ๐ข๐ง๐ ๐๐๐ซ๐ค๐๐ญ: ๐๐ก๐๐ญ ๐๐ฎ๐ฒ๐๐ซ๐ฌ, ๐๐๐ฅ๐ฅ๐๐ซ๐ฌ & ๐๐๐ง๐ญ๐๐ซ๐ฌ ๐๐ก๐จ๐ฎ๐ฅ๐ ๐๐ฑ๐ฉ๐๐๐ญ
The U.S. housing market is slowly shifting toward a more balanced environment after years of buyer's insanity. The FOMO effect was strong!
Inventory is improving, giving buyers more choices and negotiation power compared with the past few years.
Mortgage rates are forecast to ease modestly in 2026. But it bears repeating: rates are not high, historically speaking. The average 30 year fixed rate mortgage over the last 50 years is 7.75%. Current rates are around 6.25% ๐๐ญ ๐๐ข๐ง'๐ญ ๐ซ๐๐ญ๐๐ฌ. ๐๐ญ'๐ฌ ๐ญ๐ก๐ ๐ฉ๐ซ๐ข๐๐!
Home sales and prices are projected to grow modestly, with Realtor.com anticipating slight year-over-year gains. For those of you drooling at the prospect of 5% or lower rates, be careful what you wish for. Housing prices will spike again. I'm speaking with sellers now who are raising their asking prices based on the ๐๐๐ ๐ ๐๐๐๐๐๐ก๐ฆ of declining rates. These are sellers whose properties have been on the market for multiple months without so much as an offer. Stop the insanity!
Renters may benefit from softer rents in parts of the South and West as rental supply keeps pace with demand.