Michael RushReal Estate Broker, Keller Williams Realty DTC · Real Estate Broker at Keller Williams Realty DTC

Major housing authorities expect 2026 to be the strongest year for home sales since the pandemic. 🔥

24 Dec 2025 · 1 min

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In this market update, the presenter notes that mortgage rates have stopped the weekly volatility of the past two years, stabilizing in the high‑5% to low‑6% range and giving buyers better budgeting predictability. Major housing authorities—including the National Association of Realtors, Zillow, and Redfin—forecast that 2026 will be the strongest year for home sales since the pandemic began. Home prices are expected to grow modestly, only 1% to 4%, while wage growth is projected to outpace price growth, effectively improving affordability even without price declines. Sales are projected to rise about 16%, and an inventory thaw is anticipated, with a 10% increase in listings as the lock‑in effect eases and more baby boomers list their homes, providing much‑needed mid‑price inventory for first‑time buyers.

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We are no longer seeing the weekly wild swings in rates that characterized the last 2 years, giving buyers much-needed predictability for budgeting. Most major housing authorities— National Association of Realtors, Zillow, Redfin— all expect 2026 to be the strongest year for home sales since the pandemic began. Mortgage rates are expected to average in the high 5% and low 6% ranges. What to watch for in 2026: Affordability gains. Home prices are expected to have modest growth of 1 to 4%, and for the first time in years, wage growth is expected to outpace home price growth, meaning homes will technically become more affordable even if prices don't drop. Home sales are forecasted to rise 16%, and there's going to be an inventory thaw. We're projected 10% inventory growth as the lock-in effect finally breaks, and more baby boomers are expected to list their homes in 2026, Finally providing the mid-price inventory that first-time homebuyers have been desperate for.