Planning to buy a home in 2026? This new housing report has an interesting update

Experts expect buyers and sellers to find common ground while negotiating in 2026.

PUBLISHED 2 HOURS AGO

Representative image of a family moving into their new home. (Cover Image Source: Getty Images | Photo by Lisa Lake)

One of the biggest indicators of the affordability crisis in the United States today is the housing market. Prices of homes have skyrocketed as potential sellers have held on to their properties in order to sell them for a larger profit. However, all that might change soon with welcome news for potential home buyers. As per a report in Newsweek, there is likely to be a rise in new homes for sale. This is as per the Top Agents Insights & Predictions Report from HomeLight.

A sign reading "Price Reduced" hangs below a for sale sign in front of a house. (Image credit: Getty Images | Photo by Mark Wilson)

The report states that 74% of real estate agents believe that the homeowners who had held off on selling their homes will enter the market in 2026. The competition will hopefully force the prices of these properties down, which will be a massive relief for those looking to buy new homes. The report also states that 70% or more than 850 real estate agents are optimistic about the housing market in 2026.

“The housing market is showing some positive signs, with mortgage interest rates gradually declining and the employment rate remaining steady. These factors have contributed to a generally optimistic outlook among builders for 2026,” Ken Harthausen, the president of the Builder Division at NewDay Home, said to Newsweek. It turns out that 47% might have predicted slow economic growth in 2026, but have ruled out a recession.

Representative image showing a woman finalizing the deal for a house (Cover image source: Pexels | Thirdman)

“However, it's important to note that both the cost of new construction and resale properties are expected to continue rising. This could present long-term challenges for buyers, particularly for first-time homebuyers, who may find it increasingly difficult to enter the market.” Experts believe that affordability is improving as wage growth outpaces home price growth. It might take time for most people to afford homes, but a significant percentage of home buyers could achieve their dream in 2026.

According to Selma Hepp, Chief Economist at Cotality, better wage growth and more options in the housing market will give home buyers better options. “Also, recent changes to personal taxes and increases in SALT deductions will make homeownership more appealing for middle-income buyers in some areas, such as California and the northeast. For sellers, pent-up demand could translate into steady activity once rates stabilize, especially in affordable regions,” she added.

Representative image of a woman receiving house keys (Cover image source: Pexels)

According to Sasha Poparic, the CEO and founder of Immobilium, the international real estate platform, the housing market is showing signs of stability as buyers are remaining steadfast in what they can pay and sellers are adjusting their asking price to more realistic expectations. “Homes will continue to sell, but factors such as pricing, condition, and location will regain their importance,” Poparic said.

“A healthier market makes it easier to find affordable options, reduces financial stress for families, and allows people to choose their housing based on what they truly need in life, rather than worrying about the ups and downs of the market,” he added.

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