2026 Housing Market Outlook: A Year of Renewed Movement
After a couple of years where the housing market felt stuck in neutral, 2026 may be the year things shift back into gear. Real estate experts expect to see more buyers and sellers taking action again — and that could open the door for you to do the same.
More Homes Expected To Sell
High mortgage rates and affordability challenges have kept many would-be movers on the sidelines. But that pause is beginning to fade. Life events such as job changes, growing families, and downsizing needs don’t wait forever — and economists believe 2026 will reflect that renewed activity.
Industry forecasts project an increase in total home sales next year as consumer confidence improves and more people feel ready to make a move.
Mortgage Rates May Ease Further
Mortgage rates remain one of the biggest factors shaping buyer activity. After peaking near 7% earlier this year, rates have started to ease, and most major housing forecasters expect that gradual decline to continue into 2026.
Rates won’t fall overnight — it’ll be a steady, stair-step process with occasional bumps along the way as new economic data is released. But overall, experts anticipate average rates settling in the low 6s to possibly high 5s by late 2026.
Even a modest drop makes a difference. A reduction from 7% to 6% can translate to hundreds of dollars in monthly savings, bringing many buyers back into the market and improving overall affordability.
Home Prices Expected To Rise at a Healthier Pace
Home values are still projected to grow next year, though at a more balanced and sustainable rate. As lower mortgage rates draw more buyers, demand will continue to put mild upward pressure on prices — preventing a major decline.
Nationally, housing analysts expect moderate price appreciation, with regional variations depending on local inventory levels. Some areas may see small dips, but widespread price drops or a market crash remain highly unlikely.
This kind of steady growth gives buyers and sellers confidence. It means homeownership continues to be a strong investment, while also helping stabilize affordability for those planning to enter the market.
Bottom Line
After a quieter couple of years, 2026 is shaping up to be a year of renewed opportunity.
With more homes expected to sell, mortgage rates trending lower, and home prices rising at a measured pace, the market appears to be moving toward better balance and healthier activity.
If you’re thinking about buying or selling in the year ahead, now is the time to prepare. Connect with a trusted local real estate professional who can help you understand how these national trends align with what’s happening right here in the Greater Chattanooga market.
Source: Keeping Current Matters
