2026 U.S. Housing Market: What Can We Expect

2026 U.S. Housing Market: What Can We Expect

Investor 路 Fort Lauderdale, FL 路 Member since 2013 路 917 posts 路 606 votes

饾煇饾煄饾煇饾煍 饾悢.饾悞. 饾悋饾惃饾惍饾惉饾悽饾惂饾悹 饾悓饾悮饾惈饾悿饾悶饾惌: 饾悥饾悺饾悮饾惌 饾悂饾惍饾惒饾悶饾惈饾惉, 饾悞饾悶饾惀饾惀饾悶饾惈饾惉 & 饾悜饾悶饾惂饾惌饾悶饾惈饾惉 饾悞饾悺饾惃饾惍饾惀饾悵 饾悇饾惐饾惄饾悶饾悳饾惌

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%   饾悎饾惌 饾悮饾悽饾惂'饾惌 饾惈饾悮饾惌饾悶饾惉.  饾悎饾惌'饾惉 饾惌饾悺饾悶 饾惄饾惈饾悽饾悳饾悶!

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 饾憹饾憸饾憼饾憼饾憱饾憦饾憱饾憴饾憱饾憽饾懄 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.

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  • Nicholas L.Pro Member
    Flipper/Rehabber 路 Pittsburgh 路 Member since 2018 路 6k+ posts 路 5k+ votes
    8mo

    @Michael Carbonare

    I know that conditions are different depending on the market but I am not really seeing buyers have much negotiation power.

  • Investor 路 Fort Lauderdale, FL 路 Member since 2013 路 917 posts 路 606 votes
    8mo

    Nick, I'm in south FL, one of the softest markets in the US currently.  I am surprised at the resistance that some sellers are still putting forward.  There is an anger, it seems, from these sellers whose property is overpriced and sitting unsold for 5 months.  I say it's the hangover from the glory of yesteryear's record sellers market, when it was pretty much name your price and some buyer with the FOMO syndrome will over 5% more than asking price.
    If these sellers don't need to sell, they won't; they'll delist.  But the ones who must sell, well, there are deals to be found among them.

  • Jaron WallingPro Member
    Rental Property Investor 路 Indianapolis, IN 路 Member since 2018 路 4k+ posts 路 4k+ votes
    8mo

    @Michael Carbonare We have a listing for sale right now. I'm getting the same responses over and over again from interested buyers. 

    "They loved the house, it's #1-2 on there list, but they want to look at other properties.

    "Client liked the house, price is okay, but not rushed to make an offer."

    I'm trying my best to sell by asking thoughtful questions 24hrs after a showing. I connected with agents from other properties we bought/sold. None of it matters. Buyers have leverage but they're not making offers. You can lead a horse to water, but you can't make it drink. 

    It feels like I'm beating a dead horse. We're giving it 10 more days and then delisting.   

  • Investor 路 Fort Lauderdale, FL 路 Member since 2013 路 917 posts 路 606 votes
    8mo

    Jaron, not an uncommon scenario these days. I'm working with another investor and we are trying to move a property that has excellent appeal as a second home, (it's in the mountains), or as a STR with a strong rental history. It's received over 1K views online, with nary a nibble.
    Just dropped the price $20K.  I'm convinced it's a bargain, but the market thinks otherwise, apparently.

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