If you’ve been wondering what lies ahead for the housing market in 2026, you’re not alone. Over the past several years, affordability has been the single biggest challenge for buyers and sellers alike—causing many to pause their plans and wait for more favorable conditions. Encouragingly, the market is beginning to turn.
At Benson & Mangold Real Estate, we’re closely tracking the trends shaping the year ahead. The data shows that affordability improved in 2025 for the first time in three years, and industry experts agree that progress is expected to continue into 2026. This outlook is driven by three key factors: mortgage rates, housing inventory, and home price growth.
Mortgage Rates Have Stabilized
Mortgage rates have already come down from their recent highs—dropping by nearly a full percentage point over the past year. While that may sound modest, the impact on monthly payments and purchasing power is significant.
Looking ahead, forecasts suggest rates will remain relatively steady, hovering in the low 6% range throughout 2026. Where rates ultimately land will depend on broader economic conditions, employment trends, and future decisions by the Federal Reserve. What’s important to note is that today’s rates are already more favorable than they were a year ago—creating meaningful opportunities for those planning a move this year.
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For buyers: Lower rates can reduce monthly payments and increase buying power, making homeownership more attainable.
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For sellers: Rates in the 6% range may be the new normal, and with strong equity positions, many sellers are still well-positioned to make a move.
Inventory Is Continuing to Improve
Housing inventory saw a notable rebound in 2025, increasing by approximately 15%. This shift brought much-needed balance back to the market, giving buyers more options, more time to make decisions, and greater negotiating leverage.
While inventory growth is expected to be more moderate in 2026, experts at Realtor.com project an additional 8.9% increase in homes for sale this year. That continued improvement is helping ease competition and temper price pressures.
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For buyers: More inventory means greater choice and stronger negotiating power.
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For sellers: Strategic pricing and strong presentation will be essential to attract qualified buyers.
Home Price Growth Is Slowing—But Remaining Stable
With more homes on the market, price growth has cooled to a more sustainable pace. Nationally, most economists expect home prices to continue rising in 2026, though at a slower rate. On average, forecasts call for price growth of approximately 1.6%.
This is reassuring news amid speculation about sharp price declines. However, real estate remains highly local. Some markets may outperform national averages, while others could see flat or slightly declining prices. That’s why working with a knowledgeable local real estate professional is so important.
As Realtor.com notes:
“For homebuyers and sellers, the shift signals a more balanced market—one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers.”
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For buyers: Expect steadier, more predictable pricing rather than sudden spikes.
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For sellers: A balanced market helps protect equity while supporting consistent demand.
More Homes Are Expected to Sell in 2026
Taken together, stabilizing rates, growing inventory, and moderated price growth are creating a healthier affordability equation. As a result, experts anticipate increased home sales in 2026.
Zillow Chief Economist Mischa Fisher explains:
“Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026.”
Bottom Line
Affordability won’t improve overnight, but the momentum is clearly moving in the right direction. With several key trends aligning, 2026 is shaping up to be a year of greater balance, predictability, and opportunity in the housing market.
If you’re curious about how these national trends translate to our local Eastern Shore market, the experienced team at Benson & Mangold Real Estate is here to help.
Let’s talk about the opportunities ahead—and whether now is the right time for your next move.
