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Housing Market

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December 30, 2025

Real Estate Predictions for 2026

Real Estate Predictions for 2026 - United Home Loans

If you search for 2026 real estate projections, there’s one word you will see come up quite a bit: “reset.” Across the board, analysts are predicting a more balanced market in 2026. Here’s a little pre-celebration of the good things to come for both buyers and sellers! 

Price Growth 

Following relatively stagnant growth in 2025, chief economist at the National Association of REALTORS®, Lawrence Yun, predicts the median home price to grow by a whopping 4% in 2026. This is a sigh of relief as we saw price reductions toward the end of 2025, leaving everyone wondering if the trend would last. As generally agreed upon, it appears not- which should continue attracting sellers to the market. 

If you’re a seller, you can expect to get the best price for your home! If you’re a buyer, you can expect more inventory to choose from, so you can buy the perfect home!  

Sales Increase 

Once again, everyone seems to be nodding “yes” to the question of whether sales will increase in 2026. Redfin predicts an overall increase of 3%, while NAR is zeroing in on a new homes sales increase of 5%. The latter aligns with Zillow’s prediction that more builders will be offering better incentives given the current pipeline. 

With more builder incentives, that means there will be more affordable inventory for buyers! 

Mortgage Rates  

The overall consensus seems to be that, throughout 2026, mortgage rates will look about the same as they do now. No one is predicting a significant or lasting dip below 6%, nor major increases from the 6.20%’s. The average interest rate in 2025 ended up around 6.7%. 

If you are a buyer or seller who left the market this year, interest rates predicted to be averaging around 6% in 2026 is a great reason to jump back in!  

Your Plans for 2026 

We may not know for sure what the future holds for prices, sales, and interest rates, but we know that we’ll be right by your side! If you have new homeownership plans for 2026, let’s carve out a personalized path to financing. 

Dittmann Tracey, M. (15 Nov 2025). Housing Market Set for a 2026 Comeback, NAR Predicts. National Association of Realtors. https://www.nar.realtor/magazine/real-estate-news/economy/housing-market-set-for-a-2026-comeback-nar-predicts

Fairweather, D., Zhao, C.(2 Dec 2025). Redfin’s 2026 Predictions: Welcome to The Great Housing Reset. Redfin. https://www.redfin.com/news/housing-market-predictions-2026/

Kelleher, S. (15 Dec 2025). Housing Market Predictions for 2026: What’s Next for Buyers and Sellers. Zillow. https://www.zillow.com/learn/housing-market-predictions/

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