The U.S. housing market is showing signs of a meaningful shift in 2026, offering renewed opportunities for both buyers and sellers. After several years of constrained inventory and high mortgage rates, affordability is improving and market activity is expected to pick up. According to recent forecasts, existing-home sales could rise significantly this year as inventory increases and mortgage rates ease from their recent highs, which may bring more buyers back into the market. National Association of REALTORS®
One of the most talked-about trends is the gradual improvement in housing affordability. While rates remain above historical lows, even modest declines can expand purchasing power for prospective buyers — especially first-timers who’ve been sidelined in previous years. More sellers are feeling confident to list their homes as financing becomes slightly more accessible, which can help ease the supply shortages that have dominated the market. PR Newswire
At the same time, demographic shifts and lifestyle preferences are shaping demand. Millennials and Gen Z buyers are increasingly influencing where homes are in demand — from suburban and secondary markets to properties with flexible, functional spaces suited for remote work. merrellpropertiesllc.com
For real estate professionals and investors, 2026 looks like a year to pivot with the market. Higher sales volumes, changing buyer priorities, and a more balanced market environment could spark activity after a period of stagnation — but success will depend on understanding local dynamics and staying responsive to market signals.