Realtor.com’s 2026 Housing Forecast paints a picture of a slowly rebalancing housing market as the year begins, offering both opportunities and challenges for buyers and sellers across the United States. The report highlights several key trends, including modest improvements in affordability and inventory dynamics, that could benefit both groups, signaling a shift toward a more stable housing environment after years of volatility.
The forecast suggests that mortgage rates are expected to remain relatively stable, hovering near 6.3%, slightly lower than the levels seen in 2025. This slight decrease could provide some relief for homebuyers who have been navigating high borrowing costs in recent years. Additionally, rising incomes in many regions are helping to ease the traditional income-to-mortgage payment ratio, which has been a significant hurdle for prospective buyers. As more buyers see their purchasing power increase, this may translate into greater confidence in the market and a more balanced dynamic between demand and supply.
Realtor.com’s report anticipates that existing-home sale prices will increase by approximately 2.2% in 2026, a more moderate rate of growth compared to the rapid price increases seen in previous years. While prices are still expected to rise, the pace of growth will likely be more sustainable, allowing for more gradual price appreciation. This could provide a more favorable environment for buyers who have been contending with rising costs in recent years. At the same time, rents are projected to decline, offering relief to renters and further easing overall housing cost burdens for many Americans.
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One of the key takeaways from the forecast is that supply constraints will likely continue to limit the number of available homes for sale, meaning that existing-home sales may remain below historic norms. However, gradual improvements in housing inventory are expected throughout the year. While inventory levels may not return to pre-pandemic levels, the forecast indicates that there will be more options for buyers who have struggled with limited choices in recent years. This could help to re-engage potential homebuyers who have been sidelined by the lack of available homes or who have been reluctant to enter the market due to affordability concerns.
For homeowners looking to sell, the 2026 forecast suggests a more balanced negotiating environment than in recent years. Sellers will likely benefit from steady price appreciation, but prices are not expected to escalate at the breakneck pace seen during the housing boom of the past few years. This moderation in price growth means that sellers may need to be more realistic in their pricing expectations, but they will still have opportunities to capitalize on the continued demand for homes. For buyers, the increase in inventory and the gradual easing of affordability pressures could provide greater opportunities to enter the market and secure more favorable terms than in previous years.
The overall picture painted by Realtor.com’s 2026 Housing Forecast is one of gradual stabilization in the housing market, with a more balanced relationship between supply and demand. While challenges remain, such as the ongoing inventory constraints, the forecast suggests that both buyers and sellers will find more room for negotiation and less of the extreme price volatility seen in the past. As the year unfolds, these trends could lead to a healthier, more sustainable housing market that offers better opportunities for both parties.
