Modest Prices, More Inventory, and Better Odds in 2026

The most recent 2026 real estate forecasts point to a cooler but stable market rather than a boom or a crash. Zillow and Redfin see U.S. home prices rising only about 1–1.2% in 2026, as affordability slowly improves but high prices and rates keep demand in check. Mortgage rate projections cluster around the low-6% range for much of 2026, with only gradual easing expected. Slightly lower rates and rising inventory should bring more transactions as the market continues to normalize after the pandemic-era rollercoaster.

When you blend these forecasts together, you get a pretty clear picture of where I think the national market is headed in 2026: increased sales and a modest bump in prices.

Here in Westchester County, and across much of the Northeast, the market still hasn’t really cooled. As I wrap up the 2025 year-end numbers, there’s some good news for buyers: annual sales were up, and single-family home appreciation is easing — from about 9% between 2023 and 2024 to 5.9% from 2024 to 2025. Even better, mortgage rates are now more than a full percentage point lower than they were at the start of 2024.