➤ Key Highlights
Realtor.com released its 2026 Housing Forecast, projecting a cautious stabilization in the housing market after several years of affordability challenges, limited supply and tepid activity.
Buyer conditions are expected to improve gradually as mortgage rates ease, incomes rise and more homes come onto the market.
The recovery is expected to remain slow, with existing-home sales staying well below normal levels and broader political and economic uncertainty keeping the outlook fragile.
Realtor.com forecasts the average 30-year mortgage rate will hover near 6.3% in 2026 slightly below the 2025 average of 6.6%.
Home prices are projected to rise 2.2% in 2026, following a 2.0% increase in 2025.
Active listings are expected to grow 8.9% in 2026, the third consecutive year of expansion.
The market is expected to maintain a balanced 4.6 months of inventory — slowly inching toward the six-month level traditionally associated with a buyer’s market.
Realtor.com released its 2026 Housing Forecast, indicating a slow recovery for the residential market. The forecast anticipates gradual improvements in buyer conditions as mortgage rates decline slightly, incomes rise, and inventory expands. Existing-home sales and supply levels are expected to remain below historical averages.
The lens focuses on anticipated changes in buyer participation as affordability and supply factors shift. This means the market environment is evolving, with the interplay between mortgage rates, home prices, and available inventory shaping buyer activity. As these factors recalibrate, buyer engagement may adjust, influenced by broader access and purchasing power. The outlook underscores the importance of monitoring how affordability and supply trends affect demand signals in the residential sector.
⚠️ Why it matters now
For CRE professionals, understanding the impact of changing affordability and supply conditions is critical when evaluating tenant and buyer demand signals. The lens highlights the need to track how shifts in inventory growth and mortgage rates influence residential absorption and purchasing behaviors. This context can inform planning, risk assessment, and engagement with both capital and operational partners as the market transitions.
Stop Reading Headlines
Start Understanding the Market
➤ TAKEAWAY
As mortgage rates and inventory levels slowly adjust, market participants may observe incremental changes in buyer activity. The ongoing recalibration of affordability and supply is likely to continue shaping demand signals. Monitoring these shifts could offer further insight into the pace and character of the residential market's gradual adjustment.
