Housing Market Forecast 2026: Should You Sell This Year?

The 2026 housing market is shaping up to be a transitional year. After years of historically low inventory and rapidly rising prices, the market is finding a new equilibrium. Here is what the data says and what it means for sellers.

Key Market Indicators

Mortgage Rates

Rates have stabilized in the 5.5-6.5% range after the volatility of 2023-2024. This is significantly higher than the 3% rates of 2021 but more manageable than the 7%+ peaks of 2023.

Inventory

Housing inventory is gradually increasing but remains well below pre-pandemic levels. New construction is helping, but the lock-in effect (homeowners reluctant to give up low mortgage rates) continues to constrain supply.

Buyer Demand

Demand remains solid, particularly from millennials entering prime home-buying years. Affordability constraints have shifted demand toward smaller homes and more affordable markets.

Regional Outlook

• Sun Belt: Continued growth but at a more sustainable pace
• Northeast: Stable prices with limited inventory
• Midwest: Best affordability and steady appreciation
• West Coast: Mixed, with some markets correcting and others rebounding

Should You Sell in 2026?

The decision to sell should be based on your personal circumstances more than market timing. However, 2026 presents favorable conditions for sellers who are ready: prices are near record highs, buyer demand is solid, and new construction has not yet caught up to demand.

Risks of Waiting

• Potential inventory increases could reduce your negotiating power
• Economic uncertainty could dampen demand
• Rising rates could price out some buyers in your market
• Carrying costs (mortgage, taxes, insurance) continue to accumulate

The Bottom Line

2026 is a reasonable year to sell for those who are ready. Prices remain strong, inventory is still relatively low, and buyer demand is solid. The key is pricing correctly and choosing the right selling method.