Reasons to Be Optimistic About the 2026 Housing Market

If buying or selling a home is on your radar for 2026, there’s encouraging news ahead. Compared to the past few years, the housing market is showing signs of greater balance, improved options, and clearer decision-making opportunities.

This doesn’t mean the market will suddenly become effortless. But it does mean several key conditions are shifting in a more favorable direction, creating a healthier environment for both buyers and sellers.

What Experts Are Saying About 2026

Housing economists across the industry are aligned on one theme: gradual improvement.

Danielle Hale, Chief Economist at Realtor.com, notes that after a challenging stretch for buyers, sellers, and renters, 2026 is expected to bring a modest but meaningful step toward a more stable housing market.

According to the National Association of Realtors, economists see 2026 as a year of opportunity. Lower mortgage rates and increased housing supply are expected to help reopen a market that has experienced years of stagnation, giving more people the confidence to move forward.

Mark Fleming, Chief Economist at First American, highlights that for the first time in several years, the fundamental forces of the market are beginning to align. While mortgage rates may decline slowly, income growth is expected to outpace home price appreciation, improving purchasing power. Affordability may not rebound overnight, but the market is moving in the right direction.

Mischa Fisher, Chief Economist at Zillow, adds that buyers are benefiting from increased inventory and improved affordability, while sellers are seeing steadier prices and more consistent demand. This balance should give both sides more breathing room in 2026.

Why Local Insight Matters More Than Ever

While national trends point toward improvement, real estate remains highly local. Market conditions will continue to vary widely by region.

As Lisa Sturtevant, Chief Economist at Bright MLS, explains, local economic factors will play a major role in determining market performance, making 2026 one of the most geographically divided housing markets in recent years.

Some areas will see stronger price growth and faster activity, while others may remain relatively flat. That’s why understanding your local market is essential. National trends set the backdrop, but local dynamics shape your real-world results.

The outlook for 2026 is more optimistic than it has been in years, with improving affordability, growing inventory, and greater balance across the market. To understand how these trends apply to your specific area — and how to take advantage of them — connect with a trusted real estate professional who knows your local market.