After a couple of years where the housing market felt like it was idling, 2026 may finally bring some forward momentum. According to industry experts, more people are expected to move next year and that could open up new opportunities if you’re thinking about doing the same.
More Homes Are Expected To Sell
High mortgage rates and affordability challenges have kept many would-be movers on the sidelines recently. But as we move into 2026, that pause seems to be easing. Life doesn’t stop; people will always have reasons to move, and analysts anticipate a steady increase in home sales next year (see graph below).
So, what’s fueling this shift? Two main factors: mortgage rates and home prices. Let’s take a closer look at each.
Mortgage Rates Could Gradually Ease
For many buyers, the top concern has been clear; waiting for lower mortgage rates. After rates peaked near 7% earlier this year, they’ve finally started to dip.
Current forecasts suggest that trend could continue into 2026, though not in a straight line (see graph below).
There’s a saying in real estate: “When rates go up, they take the escalator. But when they come down, they take the stairs.” That means expect a slow, uneven decline. Rates could fluctuate as new economic data comes out, but the broader trend points toward gradual improvement.
Experts predict modest drops, with average rates potentially landing in the low 6s or even high 5s by the end of 2026. Remember, even a small dip can make a big difference. The gap between today’s rates and those near 7% earlier this year already translates to hundreds of dollars in savings on a typical monthly mortgage payment. That kind of shift can make homeownership more attainable for many buyers.
Home Prices Expected To Rise at a Sustainable Pace
What about home prices? The outlook remains steady. Experts forecast continued price growth, though at a slower, more balanced rate than we’ve seen in past years.
With mortgage rates trending downward, more buyers are expected to return to the market. That renewed demand will keep some upward pressure on prices, preventing major declines.
Even in markets where prices have softened slightly, values are still well above pre-pandemic levels. Nationally, we’re not looking at a housing crash; just a more sustainable pace of growth (see graph below).
Local conditions will continue to matter, though. Inventory levels — or how many homes are available — will play a key role in determining how prices behave from one area to the next.
For most of the country, this balance means prices should continue to rise modestly, offering greater predictability and confidence for buyers and sellers alike.
What This Means for Buyers and Sellers
The combination of lower mortgage rates, moderate price growth, and more market activity points to a healthier real estate environment overall.
For buyers, that means greater affordability and more options. For sellers, it signals renewed demand and potential for quicker sales.
After two relatively quiet years, 2026 could be the year the market finds its rhythm again; one where both sides can benefit.
Bottom Line
After a slower stretch, the housing market looks poised for more activity in 2026. With sales projected to climb, mortgage rates on a gradual decline, and prices leveling into a sustainable pattern, the outlook is bright.
So the real question is: will you be one of the movers making 2026 your year?
Let’s connect and talk through what this could mean for your plans; whether you’re buying, selling, or just exploring your options.
