🔹 Prices
- Moderate continued price growth — lower than the 10%+ spikes of recent past, likely in the mid-to-low single-digit range (perhaps 2–5% depending on segment). This mirrors broader forecasts for slower but steady increases.
- Waterfront and highly desirable lifestyle properties will likely continue to outperform general market averages due to limited supply.
🔹 Inventory
- Inventory may gradually expand, especially as higher mortgage rates and affordability issues temper some buyer demand. That will translate into more choices for buyers and slightly longer selling times on average.
- However, true balance (i.e., 6+ months of inventory) is unlikely without a significant boost in new construction.
🔹 Market Balance & Buyer Power
- Buyer conditions improving modestly:
- Fewer extreme bidding wars.
- More negotiated deals, particularly for non-waterfront or standard family homes.
- Sellers in premium segments (waterfront, luxury) will still see advantages but should prepare for longer marketing periods and competitive pricing strategies.
🔹 Affordability & Demand
- Affordability will remain a constraint for many households in the Lakes Region, especially first-time buyers, due to elevated rates and high relative prices.
- Some demand may shift to rental or seasonal markets if buying outright remains out of reach.
🔹 Longer-Term Structural Drivers
- The Lakes Region’s settings — natural amenities, outdoor recreation, and remote work appeal — continue to attract demand from out-of-state buyers, supporting long-term pricing resilience.
- However, housing supply limitations (zoning, buildable land) are likely to keep upward pressure on values unless policy and construction activity change significantly.
🧠Summary – What to Expect in 2026
| Factor | Likely Trend |
|---|---|
| Home Prices | Modest growth (2–5% range regionally) |
| Demand | Stable to moderate increase, seasonal & lifestyle buying strong |
| Inventory | Slowly rising but still constrained overall |
| Affordability | Remains a barrier, particularly with elevated mortgage rates |
| ** Market Balance** | Shifting slightly toward buyers compared with the rapid sellers’ market recently, but sellers still hold leverage in key segments |
The Lakes Region real estate market in 2026 looks poised for steady but slower growth, with continued demand for premium and lifestyle properties, gradual easing of inventory, and persistent affordability challengestempering activity for some buyer segments.