On the sales side, Zillow expects existing home sales to climb about 4.3% next year to roughly 4.26 million — a sign that some of the pent-up demand from the past few years of tight inventory and high rates is finally starting to release. Mortgage rates, though, aren't expected to dip below 6% — so if you've been waiting for a dramatic rate drop before making a move, that's probably not the plan to bank on. The more realistic path forward is gradual improvement, not a sudden shift.
New construction is actually expected to slow down even further in 2026, which matters more than people realize — builders sitting on existing inventory means fewer brand-new options hitting the market, which keeps some pressure on existing home supply.
If you're renting and wondering whether now's the time to buy, there's an interesting shift happening too. A lot of renters are staying renters by choice these days — nearly 3 in 5 say they plan to keep renting next year, even with rates easing. That's a legitimate lifestyle decision for plenty of people. But if buying has been on your mind and you've just been unsure whether the market's actually turning a corner, this forecast is a pretty clear signal that it is.
If you want to talk through what any of this means for your specific plans — whether you're buying, selling, or just trying to figure out your timeline — give me a call. No pressure, just real numbers.
