
"Home Sales: A significant increase in home sales is expected. The National Association of Realtors (NAR) forecasts a 14% increase in existing home sales, while other sources like Zillow and Redfin predict more modest gains of around 4.3% and 3%, respectively. This growth is largely attributed to pent-up demand being released as affordability gradually improves. Home Prices: Home price appreciation is expected to be modest, with national forecasts generally ranging from 1.2% to 4% growth."
"Mortgage Rates: Rates are anticipated to decline slightly and stabilize, generally averaging between 6% and 6.4%. While this is still above pandemic-era lows, it represents an improvement from 2025 levels and is expected to attract more buyers back to the market. Inventory: The number of homes for sale is expected to continue its gradual recovery, offering buyers more choices and slightly more negotiating power. However, inventory levels will likely remain below pre-2020 norms, preventing any major price drops."
The housing market is expected to move toward a more balanced, 'reset' state rather than a dramatic rebound. Existing home sales are forecast to increase significantly, with NAR projecting 14% growth and Zillow and Redfin estimating roughly 3–4.3% gains as pent-up demand meets gradually improving affordability. National home price appreciation should be modest, generally in the 1.2%–4% range, preventing price declines while aligning with wage growth to ease affordability. Mortgage rates are forecast to decline slightly and stabilize around 6.0%–6.4%, encouraging more buyers. Housing inventory is expected to recover slowly, offering more choices yet remaining below pre-2020 levels.
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