As we look toward 2026, the real estate landscape is showing signs of transitioning into a more balanced and steady growth phase.
Below is a breakdown of the key trends and opportunities shaping real estate in 2026.
1. Interest Rates: A Key Market Driver
Mortgage rates are expected to ease. Many forecasts project average 30-year mortgage rates in the low- to mid-6% range throughout 2026. Compared with 50-year historical averages, these rates remain extremely favorable for consumers. This marks modest relief from the higher rates seen from 2023 to 2025, giving more buyers breathing room without returning to the dramatic lows of the pandemic era. More information can be found on PR Newswire.
This trend is important for both buyers and sellers. Lower borrowing costs typically translate into more qualified buyers entering the market, which can mean increased foot traffic and a broader pool of potential offers.
2. Home Prices: Slow but Positive and Steady
Across the U.S., home price growth is expected to slow but remain positive overall. National forecasts suggest modest price increases of about 2% to 4% in 2026, though the pace will vary by region. Zillow predicts a 1.2% rise in home values, with fewer markets experiencing declines next year. Expect stability rather than volatility in 2026 — good news for homeowners and cautious buyers alike.
3. Sales and Activity: An Uptick in Motion
After several years of slower sales activity, forecasts indicate a renewed uptick in transactions. Many predict sales increases in the 3% to 5% range. Zillow forecasts sales to rise by nearly 5% in 2026. This suggests demand will begin to be met as rates ease and more listings become available.
4. Listings Expected to Increase
One major theme for 2026 is greater balance between supply and demand. Listings are expected to increase, helping ease the tight conditions experienced in prior years, according to PR Newswire. Realtor.com also forecasts roughly 8.9% more inventory in 2026, nudging the market closer to equilibrium. A more balanced market means less upward price pressure, greater negotiating power for buyers, and shorter waiting periods for moving decisions.
5. Regional Variation Matters
Not all markets will look the same, and each will take time to see the growth coming. It is important to research the area you are considering. Understanding your specific metro or neighborhood can be just as important as tracking national trends. Working with a local Howard Hanna agent is key to interpreting your local market. Our agents can help you understand market conditions as you navigate buying or selling.
Conclusion
2026 is shaping up to be a year of steady growth. We are likely to see more buyers returning to the market, improved affordability compared with recent years, and more balanced supply and demand conditions. Whatever your real estate needs may be, Howard Hanna Real Estate Services will be there to help.
Howard Hanna Real Estate Services proudly provides real estate, mortgage, title, and insurance services across 14 states. As the largest family-owned and -operated real estate brokerage in the United States, Howard Hanna operates more than 500 offices with 15,000 sales associates and staff. Recognized as the most innovative brokerage, Howard Hanna provides solution-based programs and platforms to empower their agents to provide more resources for homebuyers and home sellers, resulting in their agents achieving a sales success rate that is 53% higher than agents at the top 1000 brokerages nationally. Since 1957, Howard Hanna has helped agents build the skills and experience needed to thrive in the ever-changing landscape of real estate. Learn more at www.HowardHanna.com.
