After a couple of years where the housing market seemed to stall, 2026 could be the year momentum returns. Expert forecasts suggest more people are expected to move — and that shift could open new opportunities for both buyers and sellers.
More Homes Are Expected To Sell
Over the past few years, many would-be movers have hit pause due to affordability challenges, higher mortgage rates, and limited options. But that pause button won’t stay pressed forever. People will always have reasons to move — new jobs, growing families, lifestyle changes — and experts believe more of them will take action in 2026.
(See graph below showing the projected increase in home sales.)
What’s driving this change? Two main factors: mortgage rates and home prices. Let’s take a closer look at both.
Mortgage Rates May Continue To Ease
For most buyers, mortgage rates have been the biggest barrier. After peaking near 7% earlier this year, rates have started to decline — and forecasts suggest that trend may continue through 2026.
It’s important to remember, though, that rates won’t fall in a straight line. As the saying goes, “when rates go up, they take the escalator; when they come down, they take the stairs.” In other words, expect a gradual and sometimes bumpy path forward as new economic data comes in.
Overall, experts predict a slow but steady decline, potentially reaching the low 6% range — or even dipping into the high 5s by late 2026.
Even small drops can make a big difference. Compared to earlier this year when rates hovered around 7%, buyers today are already saving hundreds of dollars per month on their potential mortgage payments. That kind of shift can make homeownership more achievable for many.
Home Prices Expected To Rise at a Moderate Pace
When it comes to home prices, forecasts show a continuation of growth — just at a slower, more sustainable rate.
As mortgage rates ease, more buyers are expected to return to the market. That renewed demand will likely keep upward pressure on prices and prevent any dramatic declines.
While some markets are seeing small dips right now, a major price correction isn’t expected. Even in areas where prices have softened, values remain well above pre-pandemic levels thanks to the strong appreciation seen over the past five years.
Of course, how prices move will depend on local inventory levels and regional demand, but overall, national experts agree that 2026 will bring steady, modest price growth.
(See graph below showing forecasted national price trends.)
This is good news for both buyers and sellers. For buyers, more predictable price growth makes it easier to plan and budget. For sellers, continued appreciation — even at a slower pace — helps maintain home values.
The Bottom Line
After a quieter stretch, 2026 is shaping up to be a year of renewed activity and opportunity in real estate. With sales expected to rise, mortgage rates trending lower, and price growth moderating, the market could finally find its balance again.
So the big question is: Will 2026 be your year to make a move?
If you’re thinking about buying or selling, now’s the time to connect with a trusted real estate professional and start preparing for what’s ahead.