2026 Real Estate Forecast:
What Buyers, Sellers & Investors Need to Know
As we head into 2026, the real estate market is showing clear signs of transition. After several years of elevated mortgage rates and limited inventory, conditions are shifting toward a more balanced housing market — with opportunities for buyers, sellers, and investors alike
1. A More Balanced Market — Not Boom, Not Bust
The housing market in 2026 isn’t expected to resemble the frenzied pace of the early 2020s — but it is poised for stability:
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Home sales are forecasted to rise nationwide: The National Association of REALTORS® (NAR) projects a ~14% jump in existing home sales, a significant rebound from flat sales in 2025. National Association of REALTORS®
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Realtor.com anticipates modest increases in transactions, with existing-home sales up about 1.7% next year. PR Newswire
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Zillow also predicts warmer market activity with more homes selling and fewer markets seeing price drops. PR Newswire
2026 could finally be the year that frustrated buyers and cautious sellers re-enter the market — though growth will be gradual, not explosive
2. Mortgage Rates & Affordability Trends
Mortgage rates are expected to settle in the low-6% range in 2026 — down from highs seen in 2023–2024 but still above the historic lows of the pandemic era. PR Newswire
What does this mean for affordability?
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Slower price growth and slightly lower monthly payments will help buyers stretch their budgets. Media | Move, Inc.
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For many markets, this marks the first affordability improvement in years. PR Newswire
3. Price Growth: Modest, Not Minimal
Across most forecasts:
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National home price growth is forecast to be modest — with Realtor.com estimating around ~2.2%, and Zillow projecting around ~1.2% for 2026. PR Newswire+1
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However, when adjusted for inflation, real-term prices may flatten or decline slightly in some areas. Media | Move, Inc.
This means homeowners still build equity, but buyers won’t face the same rapid price inflation seen post-pandemic
4. Inventory Isn’t Tightening — It’s Improving
Inventory — the lifeblood of a balanced market — is rising:
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Realtor.com forecasts an 8.9% increase in active listings in 2026. PR Newswire
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This steadier supply helps counter the “locked-in” market effect where homeowners stay put to retain low interest rates. HousingWire
More inventory means less hyper-competitive bidding wars and more negotiating power for buyers
5. What This Means for Different Audiences
Buyers
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More choices & better negotiating power
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Improved affordability as incomes grow faster than payment increases
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Less extreme competition in many markets
Sellers
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Prices rising modestly, not skyrocketing
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Strategic pricing and staging will still matter as buyers become more selective
Investors
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Shifts toward rental demand in specific markets
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Continued interest in single-family rentals and multifamily properties
Commercial and REIT segments (like senior housing and retail centers) are also anticipated to perform well in the 2026 economic environment. Barron’s
Final Outlook: A Year of Realignment
2026 won’t be a runaway seller’s market, but it will be a healthier one
Expect:
✔️ More transactions
✔️ Stabilizing prices
✔️ Gradual improvements in affordability
✔️ Greater balance between buyers and sellers
If you are ready to start your search for a new home then call or email me now to get started:
702-622-5232
tanacogan@gmail.com
