MARKET UPDATE
2026 marks a step toward “normal.”
After four years of pandemic-driven extremes—including frozen migration, volatile mortgage rates, affordability challenges, and uneven supply—the U.S. housing market is entering a new phase.
Home sales are positioned to grow again, and affordability is beginning to improve as home prices stabilize and mortgage rates ease. Inventory is normalizing in many regions, mobility is gradually increasing, and buyers and sellers are recalibrating expectations.
Four Signals to Watch in 2026
Inventory
Nationally, buyers may benefit from an approximate 10% increase in homes on the market, providing more options and improved affordability.
Home Prices
Home prices are projected to rise modestly by approximately 0.5%, while incomes are expected to grow faster—supporting affordability.
Mortgage Rates
Mortgage rates are expected to range between 5.9% and 6.9%, with an annual average near 6.4%.
Home Sales
Home sales could reach approximately 4.25 million, a 5% increase from 2025, as inventory improves and rates moderate.
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CONTACT Alena Lehrer with any questions: m: 310.437.3700
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Have a fantastic day!
Alena Lehrer
Luxury Real Estate Specialist
Compass, Beverly Hills
DRE 02120134
m: 310.437.3700
[email protected]
www.AlenaLehrer.com
