"[A] substantial level of uncertainty continues to surround the housing market, making conditions in 2026 difficult to predict,"
"The trajectory of federal interest rate policy remains unclear, inflation and broader economic volatility continue to weigh on consumer confidence, and housing affordability challenges persist for a wide range of potential homebuyers."
"While home prices are expected to continue rising in 2026, the pace of their ascent is expected to be slower than wage growth, which will improve affordability, according to Redfin."
The U.S. housing market began to improve in 2025, easing conditions that had sidelined many buyers due to scarce supply, strong demand, and high prices. Home prices are forecast to keep rising in 2026 but at a slower pace than wages, which should improve affordability. Existing-home inventory is expected to increase as more homeowners accept current 30-year fixed mortgage rates in the low-6% range, supporting gradual sales growth from 2024’s multi-decade low. Major real estate platforms project modest year-over-year sales gains, though forecasts vary, and lingering uncertainty around interest rates, inflation and broader economic volatility persists.
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