A balanced rebound is taking shape in the 2026 housing market: rising sales, easing mortgage rates, and expanding opportunities for buyers and sellers alike.

Rebounding Market and More Options

After a slower 2025, existing-home sales are projected to rise about 14% nationwide in 2026, according to the NAR. Falling mortgage rates and steady job growth are helping inventory recover, giving buyers more choices and easing the intense competition of recent years. First-time and move-up buyers can expect a smoother, more predictable purchasing process.

Steady Price Appreciation

Home prices are expected to grow 1%-4% nationally, supported by an estimated 4.7-million-unit housing shortage. While modest, this ensures healthy, long-term appreciation. Today’s homeowners hold over $200,000 in equity on average, offering buyers entering the market a solid foundation for future value growth.

Affordability Improvements

Wage growth is now outpacing home price increases in many markets, helping affordability. Mortgage rates are forecast to average 6.3%, down from 2025 peaks, increasing purchasing power by as much as $50,000 on a typical loan. While high-cost areas remain tight, emerging neighborhoods offer excellent opportunities for strategic buyers.

Demographics Driving Lasting Value

Millennials are in peak homebuying years, while many Baby Boomers are downsizing, sustaining demand across home types. This generational shift supports steady resale value, particularly for entry-level and midpriced homes, giving buyers long-term confidence.

Planning to buy or sell in 2026? Understanding how national trends intersect with your local market can help you make smart, timely decisions and take full advantage of current opportunities.