The outlook for the U.S. housing market in 2026 presents an encouraging shift for both buyers and sellers, according to recent forecasts from Realtor.com. After several years of tight supply and affordability challenges, the market is expected to offer a more balanced environment, potentially making homeownership more attainable for prospective buyers. With mortgage rates projected to average around 6.3% throughout 2026, slightly lower than in 2025, buyers may find more favorable conditions compared to the recent past.
A significant aspect of this forecast is the expected modest increase in inventory across several regions, which will provide buyers with more options. While the market is still anticipated to face some localized inventory shortages, overall, these increases could ease some of the pressure on prospective homeowners who have struggled to find suitable properties in recent years. For homebuyers, this could mean a better chance to find homes that meet their needs without having to compete in an overly tight market.
Existing-home sales are expected to see a slight rise of 1.7% compared to the previous year, with total transactions estimated to reach around 4.13 million homes. This increase reflects a more balanced approach to buying and selling, as both parties will likely find more room for negotiation and reasonable expectations. Sellers, too, may benefit from a market that allows for steady price appreciation, with home prices projected to increase by about 2.2% nationally. This moderate growth is expected to keep the market from becoming overheated while providing sellers with the opportunity to realize a healthy return on their investments.
One of the most promising aspects of the 2026 forecast is the anticipated increase in listings for single-family homes and a rise in housing starts. With construction and new listings expected to pick up, particularly in areas where supply has been constrained, buyers may find that their options broaden in the coming year. This increase in housing inventory and new builds is seen as a key factor in stabilizing the market, offering potential homeowners a better chance to secure a home without facing bidding wars and sky-high prices.
Overall, the 2026 housing market is expected to foster a steadier pace of sales, creating a more sustainable environment for both buyers and sellers. With a slight drop in mortgage rates, moderate price appreciation, and an increase in housing options, prospective homebuyers could find improved conditions that allow for greater flexibility and a more equitable market in the year ahead. The forecast suggests that 2026 could be a welcome shift toward a healthier housing market after years of challenging affordability and supply issues.
