The 2026 U.S. housing market is entering a "great reset," characterized by a transition toward better balance, with 0% to slight price growth, increasing inventory (+12.1% active listings), and improving affordability. Mortgage rates are expected to stay in the 6%+ range, but market loosening means more seller concessions and longer, 73-day average, market times.
Key 2026 Housing Market Trends:
- Price Dynamics: While national prices are expected to remain flat or see minimal gains, some local markets may experience price dips due to inventory growth. However, median home prices remain high compared to 2020 levels.
- Inventory and Sales: Active listings have increased, offering buyers more choices. The market is shifting away from the extreme seller leverage seen during the pandemic, with more negotiations occurring.
- Mortgage Rates & Affordability: Mortgage rates are projected to remain elevated above 6%. Despite this,, NAR suggests that because incomes are rising and monthly payments are starting to ease, overall affordability is slowly improving.
- Builder Activity: New construction is increasing, and builders are offering more incentives and price cuts to move inventory in specific markets.
- Technological Shift: Generative AI is expected to become a "real estate matchmaker" in 2026, helping buyers find homes with specific, niche, or wellness-focused features.