US Housing Market to See Shift in 2026: Experts Predicted Price Dips and Easing Mortgage Rates
A new analysis from Realtor.com suggests that the US housing market is poised for a shift in 2026, with home prices forecast to dip in 22 of the largest 100 cities across the country. The report, which analyzed inventory, new construction, price growth, wage and job growth, and unemployment among other factors, predicts a "most balanced" housing market next year.
The good news for buyers is that mortgage rates are expected to ease slightly, dipping to an average of 6.3% next year, compared to 6.6% in 2025. This decrease is forecasted to encourage more buyers to enter the market, as lower borrowing costs are often a significant barrier to entry.
According to Jake Krimmel, senior economist at Realtor.com, 2026 will be a "year where we think the market is going to steady" and show signs of returning to normal. The report also predicts that existing-home sales will increase by less than 2% to around 4.13 million properties in 2026, up slightly from this year's projected 4.07 million home sales.
But where will prices drop? A total of 22 cities are forecasted to see price declines next year, mostly located in the Southeast and West regions of the US. The largest price decline is expected in the Cape Coral-Fort Lauderdale metropolitan area, with homes dropping by a whopping 10.2%. Other cities with projected price drops include those where inventory has expanded and demand from buyers may be decreasing.
The reasons behind these predictions are varied, but experts point to the end of the COVID-era real estate boom, fueled by low mortgage rates and work-from-home policies. As demand returns to more normal levels, prices are expected to stabilize, making it a more buyer-friendly market for those looking to purchase homes.
While home prices may dip in some areas, others will see modest price gains. The median price increase is forecasted to be around 4% across the remaining 78 largest US cities.
Realtor.com's report provides valuable insights into the shifting landscape of the US housing market and what buyers and sellers can expect in 2026.
A new analysis from Realtor.com suggests that the US housing market is poised for a shift in 2026, with home prices forecast to dip in 22 of the largest 100 cities across the country. The report, which analyzed inventory, new construction, price growth, wage and job growth, and unemployment among other factors, predicts a "most balanced" housing market next year.
The good news for buyers is that mortgage rates are expected to ease slightly, dipping to an average of 6.3% next year, compared to 6.6% in 2025. This decrease is forecasted to encourage more buyers to enter the market, as lower borrowing costs are often a significant barrier to entry.
According to Jake Krimmel, senior economist at Realtor.com, 2026 will be a "year where we think the market is going to steady" and show signs of returning to normal. The report also predicts that existing-home sales will increase by less than 2% to around 4.13 million properties in 2026, up slightly from this year's projected 4.07 million home sales.
But where will prices drop? A total of 22 cities are forecasted to see price declines next year, mostly located in the Southeast and West regions of the US. The largest price decline is expected in the Cape Coral-Fort Lauderdale metropolitan area, with homes dropping by a whopping 10.2%. Other cities with projected price drops include those where inventory has expanded and demand from buyers may be decreasing.
The reasons behind these predictions are varied, but experts point to the end of the COVID-era real estate boom, fueled by low mortgage rates and work-from-home policies. As demand returns to more normal levels, prices are expected to stabilize, making it a more buyer-friendly market for those looking to purchase homes.
While home prices may dip in some areas, others will see modest price gains. The median price increase is forecasted to be around 4% across the remaining 78 largest US cities.
Realtor.com's report provides valuable insights into the shifting landscape of the US housing market and what buyers and sellers can expect in 2026.
... like I get that prices might dip or something, but like how do people even afford houses right now? 
mortgage rates are already kinda high, so like wouldn't that stop people from buying homes? 
anyway, I guess it's good for buyers in the long run, but what about all the people who can barely pay their rent now? 
does this mean they'll be able to afford houses too? 
. And what about those who can already afford the mortgages? Won't they be okay? 
But at the same time, I'm not sure how low prices can go - we don't want it to become a buyer's nightmare again 
. Anyways, sounds like 2026 is gonna be an interesting year for housing! 
. What's driving this supposed "return to normal" market? I need some concrete data and sources to back up these claims 
. I mean, what about the ongoing construction boom and supply chain issues that have been holding back new home inventory? 
How do these factors factor into Realtor.com's analysis? 
I mean, I know prices have been insane lately but a 10% drop is like... wow 
. Anyway, it's gonna be interesting to see how this all plays out in 2026, I'm just hoping my friends who are trying to buy homes can finally get into the market without breaking the bank 
what really got me thinking though is the end of the covid real estate boom and how that's affecting the market 
. The experts are predicting a more balanced market next year, and I think that's super exciting. With mortgage rates easing, more buyers will be able to get into the game 