The 2026 real estate market forecasts are in, and early indicators confirm good news. After two years of a mostly stagnant market — defined by high mortgage interest rates, hesitant buyers and sellers, ongoing affordability challenges, and low inventory — a reset may be coming.
Let’s dive into the highlights, so you have the intel you need to plan a successful 2026 in real estate.
2026 Market Predictions at a Glance: A Reset On the Way?
According to the National Association of REALTORS® (NAR®) 2026 housing forecast, there are a lot of changes on deck this year. Among them: home sales will rise, mortgage rates will ease, home prices will increase, and affordability could improve.
“Redfin and others in the industry are using the term the 'Great Housing Reset,'” says Michelle White, The CE Shop’s Director of Real Estate Service Experts and our National Mortgage Expert. “The housing market has been in quite a state since COVID, and it has to reset sometime. I think that time is now.”
Home Sales Finally Poised to Rise
NAR’s forecast suggests that existing home sales will increase by 14% in 2026 and new home sales will increase by 5% after several stagnant years. Zillow’s forecast projects a more modest increase of a few percentage points.
What does this mean for agents? Essentially, whether home sales are projected to increase by a little or a lot, the figure is on the rise.
Mortgage Rates Will Ease, But Won’t Return to Pandemic Lows
Realtor.com’s 2026 housing market forecast predicts that mortgage rates will average at 6.3%. Still, affordability will likely still remain strained despite stabilizing rates. Mortgage rates are still roughly double pre-COVID rates, though they are down 1.8% year-over-year.
Could the Trump administration’s proposal of a 50-year mortgage help make it easier for first-time home buyers to afford homes? Maybe. There’s lots of analysis to read up on.
What’s important to remember for agents? Home buyers don’t technically need perfect mortgage rates to make a move. But they do need clarity on what’s realistic in the current market. Agents can provide this education.
Home Prices to Inch Upward, Affordability Could Improve
Based on Realtor.com’s forecast, home prices will continue to rise, potentially increasing 2.2% in early 2026 and then decreasing during the latter half of 2026. When the pace of home price growth is nominal and wage gains are projected, affordability challenges ease. The forecast also projects incomes to outpace inflation in 2026. This could lead to a homeowner’s typical mortgage payment share of income dropping below 30% for the first time since 2022.
White adds that regulatory reforms may also help improve affordability.
“In 2026, we have new legislation being proposed in some states to eliminate property taxes altogether,” she says. “We will also see a change in the credit scoring models, which is a big shift from the traditional credit scoring we use now.”
What’s in Store for Homebuyers in 2026?
Working with buyers primarily? Here’s what to expect.
Pent-Up Buyer Demand to Unlock as Conditions Normalize
Many buyers have been on the sidelines for the past two years due to affordability constraints, changing rates, and limited inventory. But if the market stabilizes, buyer demand could stir the market, albeit modestly.
This is a good time to shift conversations with your buyers. How can you advise them to move forward with a purchase smartly?
The CE Shop Instructor and National Real Estate Expert Amy Adams shares this strategy to kickstart your prospecting.
"Prep your contacts with reminders or soft touch reach-outs ahead of the busy spring 2026 season,” she says. “Now is when you can get your name out there and ask for upcoming business. Don’t wait to start in the spring."
Review NAR’s 2025 Profile of Home Buyers and Sellers for additional insights on how to meet your buyers where they are with valuable guidance.
Lifestyle and Regional Trends Will Shape Buyer Demand
Regionally, easing affordability may continue to push buyers toward secondary cities and Midwest markets. Home prices and monthly payments tend to be lower in these areas than in coastal areas. In higher-cost coastal markets, buyers may still feel pressure from elevated home prices, rising insurance costs, and overall cost-of-living challenges.
Climate risk and insurance issues have also become a part of homebuying decisions. In some high-risk areas, insurance costs and limited insurance coverage options make buying harder for many people.
How can you guide buyers through these challenges? Agents who can explain how broader national trends apply in their local market give buyers the clarity and confidence they need to make smart purchasing decisions.
Review these reports to understand how affordability, climate risk, and insurability challenges affect the housing market in various regions of the U.S.
What’s in Store for Home Sellers in 2026?
Working with sellers? Here’s what to expect.
More Listings, But No Oversupply
According to Realtor.com’s forecast, housing inventory could increase 8.9% in 2026. But inventory would still be 12% below pre-COVID averages. The forecast projects an average of 4.6 months of inventory by year’s end. This Months Supply of Inventory figure (MSI) is generally a sign of a balanced market and an indication of a brewing seller’s market.
What does this mean for your day-to-day dealings with sellers? Pricing, presentation, and marketing strategies matter.
Pricing Strategy Will Be Key
According to NAR data, price cuts to listings rise the longer a home sits on the market. In 2025, Days on Market (DOM) ticked upward steadily by a few days each quarter. This is expected to continue in 2026.
Increasing price reductions and higher DOM highlight the need for effective pricing strategies when you’re working with sellers.
Generational Trends to Watch in 2026
Millennial and Gen Z Buyers Are Delayed, Not Gone
Affordability challenges affect millennial and gen Z buyers the most by delaying first-time homeownership. Their demand hasn’t disappeared, however. Creative ownership paths using creative financing, co-buying, and house-hacking are making purchases easier for first-time homebuyers.
Learn about these alternative homeownership strategies, so you’re able to explain them to younger clients and lead them through their options.
Baby Boomers and Seniors Continue to Downsize
Downsizing patterns are on the rise as older homeowners age into new life stages. In fact, baby boomers are now the top generation of homebuyers, according to NAR’s 2025 Home Buyers and Sellers Generational Trends Report.
Downsizing moves are usually driven by a need to relocate closer to family, maintain a smaller home, or plan for retirement. They might also involve estate sales or inherited properties after the death of a spouse. These transactions often take longer than the standard home sale or purchase.
When working with older homeowners in this life stage, adopt a teaching mindset to help educate them on their options. Plus, maintaining a strong referral network that includes other professionals who may be involved in an estate sale process (attorneys, financial advisors, estate planners) helps position you as a one-stop advisor.
Rental Market Shifts to Watch in 2026
In some markets, based on Zillow’s forecast, rent growth will continue to slow, nudging renters to pause and reconsider their next move. Rent remains high in many areas of the U.S., but the pace of rent increases has slowed compared to recent years. This is changing how conversations about renting versus buying play out.
When rising rent slows, buyers have more time to save, prepare their finances, and explore all of their homeownership options. Position yourself as a valuable educator and advisor on rent-versus-buy scenarios, including explaining monthly costs, equity, and true cost of homeownership considerations. Do this well and renters will look to you and your services when they’re ready to buy.
10 Easy Ways to Prepare Your Real Estate Business for 2026
With the changing market in flux, spend some time preparing your business for the busy year ahead using these tips from our experts.
Update Your Market Talking Points. Be ready to explain rates, prices, and inventory clearly.
Reset Buyer Expectations Early. Help buyers plan around today’s market, not past conditions.
Price Listings Realistically. Use current data to guide smart pricing from the start.
Re-Engage Old Leads. Reconnect with buyers and sellers who previously paused.
Organize Your Contacts. Group contacts by buyer type or life stage.
Lead with Education. Share helpful market insights to add value.
Build Strong Referrals. Partner with professionals who clients can trust.
Focus Your Audience. Choose one or two client types to specialize in.
Set a Simple 2026 Plan. Create clear goals based on today’s market.
Plan for Continuing Education. Stay compliant, build your skills without last-minute stress.
Adams adds this final thought.
“Keep your head in the game,” she says. “The agents who are busy are busy because they are living, breathing, and eating real estate. Staying immersed and focused will bring in business.”
Save and Share Our Q1 2026 Real Estate Market Report with Your Network
Curious about conditions for the first quarter of 2026?
Download our Q1 2026 Real Estate Market Report.
Plus, save and share it with your agent friends, network, and clients!
Make 2026 Your Best Year in Real Estate with The CE Shop
Shifting market or not, one thing remains constant: real estate agents who are informed, educated, and adaptable are best positioned to succeed. Bookmark our Agent Essentials blog and stay fresh on real estate trends and knowledge to help you along the way.
As you plan your 2026, The CE Shop’s Continuing Education and Professional Development courses help you stay compliant, sharp, and ready to guide clients through today's market.
