If you’ve been wondering what to expect from the housing market in 2026, you’re not alone. For the past few years, affordability has been the biggest challenge standing between many people and their next move. Buyers waited. Sellers hesitated. And a lot of plans were put on hold.
The good news? Things are starting to improve.
In 2025, affordability reached its best level in three years. And experts agree the momentum should continue into 2026 — driven by three key factors: mortgage rates, inventory, and home prices.
Mortgage Rates Are Lower — and Stabilizing
Mortgage rates have already come down from their peak, dropping nearly a full percentage point over the past year. That may not sound dramatic, but even small changes have a meaningful impact on monthly payments and buying power.
So, will rates keep falling?
Most forecasts suggest rates will hover in the low 6% range throughout 2026. Where they go next depends on the broader economy, job growth, and future decisions by the Federal Reserve. But what matters most is this: rates are already lower than they were a year ago — and that creates opportunity.
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For buyers: Lower rates improve affordability and help more people qualify for homes that previously felt out of reach.
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For sellers: Rates in the 6s are likely the new normal. If you need to move, today’s conditions are workable — especially if you’re bringing equity into your next purchase.
Inventory Is Growing, Bringing Back Balance
Inventory was one of the biggest missing pieces in recent years. In 2025, the number of homes for sale increased by about 15%, giving buyers something they hadn’t had in a long time: options.
More inventory restored balance by slowing price growth and giving buyers more negotiating leverage. And while the gains in 2026 may be more modest, Realtor.com forecasts inventory will grow by another 8.9%.
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For buyers: More homes to choose from and more room to negotiate.
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For sellers: Pricing strategy matters more than ever. Homes priced correctly are the ones that stand out and sell.
This steady rise in supply is a major reason affordability is improving — and why the market feels less pressured than it did just a few years ago.
Home Price Growth Is Slowing to a Healthier Pace
With more homes available, price growth is cooling — but not collapsing. Most experts agree that national home prices will continue to rise in 2026, just at a slower, more sustainable pace.
On average, forecasts call for about 1.6% price growth next year.
That’s important to understand. Despite alarming headlines on social media, a national price crash isn’t expected. Instead, the market is shifting into a more predictable rhythm.
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For buyers: Slower growth means fewer surprises and easier budgeting.
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For sellers: Price stability protects your equity while restoring balance.
Of course, price trends will vary by location. Some markets may grow faster, while others could level off or dip slightly. That’s why local insight is critical.
More Homes Are Expected to Sell
When you combine lower rates, growing inventory, and slower price growth, the result is a healthier affordability equation. And that’s exactly why experts expect more homes to sell in 2026.
As affordability improves, more buyers are able to step back into the market — and more sellers feel confident listing their homes. According to Zillow’s Chief Economist Mischa Fisher, both sides should have more breathing room this year.
That means more movement, more opportunity, and fewer people stuck on the sidelines.
Bottom Line
Affordability isn’t going to change overnight. But with several key trends moving in the right direction, 2026 is shaping up to be a year of greater balance, predictability, and opportunity than we’ve seen in quite some time.
If you want to understand how these trends apply to your local market — and what opportunities may be opening up where you live — the right guidance makes all the difference.
✨ Ready to explore what 2026 could mean for you?
👉 Connect with a trusted local expert at https://aceestate.com/ and let’s talk through your options with clarity and confidence.
