Expert Forecasts Point to Affordability Improving in 2026

January 17, 2026

Wondering what to expect from the housing market in 2026? You’re not the only one. For the past few years, affordability has been the biggest barrier standing between most people and their next move. And a lot of buyers and sellers have been holding their breath waiting for things to get better. The good news? It’s finally happening.


In 2025, affordability was the best it’s been in 3 years. And experts agree the momentum will keep going in 2026. And that’s based on their analysis of the key factors shaping the housing market in the year ahead: mortgage rates, inventory, and home prices.


Lower Mortgage Rates Are Already Here


Mortgage rates have already come down from their peak. By some counts, they dropped by almost a full percentage point over the course of the last year. And that’s a big deal, even if it doesn’t sound like it. But how low will they go? And should you wait for them to come down more? Here’s your answer. 


Forecasts suggest they’ll stay pretty much where they are now and hover in the low 6% range throughout 2026 (see graph below):

Where they go from here really depends on what happens with the economy, the job market, and any changes in monetary policy the Fed makes in the year ahead. The important thing is, they’re already lower than they were just one year ago and that’s ideal if you’re planning a 2026 move.


  • For buyers: A lower rate reduces monthly payments and increases buying power. And, that combo helps more people qualify for homes that previously felt just out of reach.
  • For sellers: It may be time to accept that rates in the 6s are the new normal. And if you need to move, it’s doable, especially with your equity.


Even More Options Are on the Way


In 2025, the number of homes for sale improved by about 15%. As inventory rose, buyers regained things they hadn’t had in years: options, time to consider those options, and negotiating leverage. That helped restore more balance to the housing market.


Not to mention, the inventory gains are a big piece of what’s helped price growth slow down – which in turn improves affordability.


While the inventory gains this year aren’t expected to be as steep, experts at Realtor.com say the supply of homes for sale should grow by another 8.9% this year.


  • For buyers: That means even more choice and more negotiating power.
  • For sellers: Pricing your house right will be essential to draw in buyers.


Home Price Growth Is Slowing to a More Sustainable Pace


With more homes for sale, there isn’t as much upward pressure on prices right now. And we’ve seen that shake out over the past year. Even so, the overwhelming majority of experts say, nationally, prices will continue rising in the year ahead – just at a slower pace. On average, they say prices will rise by 1.6% in 2026 (see graph below):

And that's reassuring if you've been fed content on social media saying prices are going to come crashing down. But here’s what you need to remember most about this. It’s going to vary a lot by area.


So, lean on a local agent for the latest on what’s happening where you are. Some markets will see prices rise more than this. Others may see prices come down slightly. It really all depends on conditions in your local market


But overall, prices will continue to rise at the national level. And that’s good for the market as a whole. As Realtor.com explains:


“ For homebuyers and sellers, the shift signals a more balanced market —one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers.”


  • For buyers: Expect more moderate price growth, not the sudden and intense spikes just a few short years ago. That gives you fewer surprises and more predictability, which makes budgeting a whole lot easier.
  • For sellers: This slower price growth restores balance without putting your equity at risk. And that’s a win. 


More Homes Will Sell 


All of this adds up to a better affordability equation in 2026. And that’s exactly why experts are saying we should see more homes sell (and more people buy) this year.

As Mischa Fisher, Chief Economist at Zillow, says:


“Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026 .”


The bottom line is, more people are finally going to be able to make their move this year. So, the question is: will you be one of them? The market is giving you an opportunity you haven’t had in a while. Maybe it’s time to take advantage of it.


Bottom Line


Affordability won't change suddenly overnight in Granite Bay And Eldorado Hills, or anywhere in the Sacramento valley. However , with several key trends working together, it should slowly and steadily improve in the months ahead.


That’s exactly why, in 2026, you should see a market with more balance, more predictability, and more breathing room than you’ve had in years.


Want more information about the opportunities unlocking in our local market?



Let’s chat.

That House That’s Been Sitting Could Be Your Best Shot at a Deal

June 24, 2026
Open up a home search and you'll see them. Listings that have been on the market for two months. Three. Some longer. Most buyers scroll right past them, assuming something’s wrong with the house. But that instinct could be costing you, since the longer a home sits, the more motivated the seller usually gets. Where Some Buyers Are Finding Better Deals If affordability has been your #1 hurdle to buying, here’s a surprisingly simple strategy that could help you finally get your foot in the door. Start with the homes that have been sitting the longest. That’s often where the best deals are. Here’s why. Data from Realtor.com shows there’s a connection between longer time on the market and lower sales prices. Basically, the longer a house sits, the more likely it is that the seller will reduce the price (see graph below): 

Two Big Reasons To Move This Summer

June 20, 2026
A lot of people who want to move are telling themselves the same thing: " Maybe I'll just wait until later this year once things calm down ." While waiting sounds like a good plan, there's something worth knowing before you decide. Rates aren’t expected to change much, so if that’s the #1 reason you’re waiting, it may not pay off. And there may be other things you miss out on in the meantime. Historically, Summer is one of the strongest seasons of the year for both buyers and sellers. And if you delay your move until Fall or Winter, some of those opportunities may already be fading. Buyers: Fresh Inventory Is Your Real Summer Advantage One of the biggest frustrations buyers have faced over the past few years has been a lack of affordable options . Maybe you’ve run into that yourself: You find a house you like, but it's out of your budget. You find something in your budget, but you don’t like it. Or worse, nothing interesting hits the market for weeks. Historically, Summer helps with that. Looking at data from the last few years, Summer months consistently bring more sellers into the market than later in the year. And that gives buyers a real window of fresh choices. According to Realtor.com , any given Summer month typically sees about 32% more fresh options than the average month from September-December.

Should You Pay for Your Buyer’s Closing Costs? What Sellers Need To Know.

June 17, 2026
A few years ago, sellers could get away with saying "no" to just about everything. No repairs. No concessions. No negotiation. If buyers wanted the house, they pretty much had to take it on the seller's terms. But now that inventory’s grown, negotiations are becoming a normal part of the process again. That's why one of the most important things sellers need to understand right now is this: The goal isn't to “win” every negotiation. Sometimes, it’s worth meeting buyers where they are to get a deal done, fast. One example? Helping with a buyer's closing costs. Let’s break that down, so you know what to expect if it comes up in your sale. What Are Buyer Closing Costs? Closing costs are the extra expenses buyers pay on top of their down payment when they purchase a home. Freddie Mac gives some examples : Loan origination fees Appraisal and inspection costs Title and attorney fees Survey fees and more Typically, buyer closing costs range from about 2% to 5% of the home’s purchase price. So, on the typical $400,000 home, that could mean anywhere from $8,000 to $20,000 out of pocket. And in today’s affordability-challenged market, that upfront cash can be a major hurdle for some buyers – even if they can comfortably afford the monthly mortgage payment itself. That’s why more people are asking sellers for help. And More Sellers Are Saying “Yes” According to the latest data from Zillow , 67% of sellers reported paying some or all of the buyer’s closing costs in 2025 (see chart below) :

What Rising Inflation Means for Your Move

June 12, 2026
Data shows inflation is moving in the wrong direction. But before the headlines send anyone into a panic, here's what's actually going on, why it matters for the housing market, and what it means if you're thinking about buying or selling. Inflation Went Up – Here’s What That Actually Means The government tracks inflation in a variety of ways. One is something called PCE – the Personal Consumption Expenditures Price Index. It measures how much more (or less) people are paying for goods and services compared to a year ago. And just based on your own expenses, you can probably guess which way that’s trending. That’s the one everyone is talking about right now. Check out the yellow line to see how that’s spiked since February ( see graph below ). A big driver of this jump is the ongoing conflict in the Middle East, which has pushed gas and energy prices significantly higher.

Could Moving a Bit Further Out Change Everything About Your Budget?

June 10, 2026
Whether you're dreaming about buying your first home or wondering if it’s time to move on from the one you're in, affordability is probably weighing on your mind. Home prices are still high in many markets, and even though things have improved a bit over the past year, making the numbers work can still feel like a stretch. But the people finding ways to move right now usually have one thing in common. They didn't wait for affordability to come to them. They went looking for it. According to PODS , 61% of people across all generations say affordability is the biggest factor when deciding where to move. And it's led a growing number of people to do one thing – broaden their search to include more affordable areas they hadn't seriously considered before. As PODS , put it: ". . . moving is increasingly driven by affordability, connection, and quality of life. As economic pressures persist, Americans are taking a more intentional, values-driven approach to where they choose to live.” It’s Not Just the Home Price – It’s the Whole Cost of Living Here's where it gets really interesting. When people talk about moving for affordability, they're not just talking about finding a cheaper house. They're thinking about the full picture. What does it actually cost to live somewhere? WalletHub looked at exactly this, measuring housing costs as a share of median monthly household income across every state ( see map below ). Take a look at where you live on that map. The lighter the blue, the more affordable it generally is to live there. The darker the blue? Just the opposite. 

The Real Reason Some People Are Still Moving Right Now

June 6, 2026
You may be telling yourself you’re going to wait to move – maybe you’re hoping mortgage rates will come down, prices will fall, or the market will feel a little easier. And honestly? A lot of people feel that way right now. But here’s what some are starting to realize. Waiting doesn’t usually fix the thing that made you want to move in the first place. Your family still desperately needs more room. Your empty nest still feels too...empty. Your parents or grandparents still need you to live closer. You just got married... or divorced. Your vision of retirement has you living somewhere else. Eventually, life can reach a point where waiting feels harder than moving. That’s why some people are still deciding to buy right now, even in today’s market. Not because conditions are perfect . But because the life changes behind their move never really went away. And maybe that’s exactly where you are too. If so, you’re certainly not alone. The Real Reasons People Move Data from the National Association of Realtors (NAR) shows 1 in 5 buyers last year said they felt like they had to purchase a home at that time, no matter the market. That's an important reminder right now. Sure, the dollars and cents of your move have to make sense for you. But big life changes happen whether mortgage rates and home prices are high, low, or somewhere in between. And those big life events happen more than you may think. NAR says roughly 22.5 million people experience major life changes in a typical two-year span ( see graph below ): 

Less House, More Home: Why Smaller Homes Are Paying Off for Today’s Buyers

June 2, 2026
You started shopping with a specific mental image of your future home in your mind. Then the houses in your budget came in smaller than you pictured. That’s the reality for a lot of buyers right now. Affordability is tight. But don’t let that discourage you. Going smaller might actually be a smart play in today’s market – and the upside can be bigger than you'd think. Let’s break down two places to look where smaller won’t necessarily feel like a compromise. Homebuilders Are Focused on Smaller Options Lately For starters, smaller is kind of on trend right now. Newly built homes have been shrinking for years. According to the latest data from the Census , the median square footage of new single-family homes has been falling overall since 2014 ( see graph below ):

Newly Built Home Prices Hit a 5-Year Low

May 30, 2026
If you’ve always assumed a newly built home is just not in your budget , you should know the math just got a little friendlier. The median sale price of a newly built home is now at its lowest level since 2021, according to the latest data from the Census . And on top of that, builders are still rolling out incentives to bring buyers through the door. Here's what's happening, and what it means if you're shopping right now. Prices on Newly Built Homes Have Come Down After a steep climb during the pandemic years, prices have eased a bit. The median sale price of newly built homes is sitting at about $390,000 nationwide. That’s the lowest it's been in nearly five years ( see graph below ):

What Most Veterans Don't Know About Their VA Home Loan Benefit

May 27, 2026
Nearly half of Veterans (49%) feel homeownership is currently out of reach, according to a recent survey from NewDay USA . But many are closer than they think. And you might be, too. If you’re a Veteran, you probably know the Veterans Affairs (VA) home loan benefit exists – it's been around for over 80 years. What you might not know is what it actually covers. Three misconceptions trip up Veterans the most (see graph below): 

The Pricing Mistake That Could Cost You Your Sale

May 23, 2026
Most sellers come into the market with one number in mind. And it’s often the one that costs them the most. That's their asking price . A survey from Realtor.com shows about 8 in 10 (80%) of sellers expect to sell at or above their asking price today. But here’s where things get interesting. In reality, only about 4 out of every 10 (roughly 40% ) actually do. That’s a big gap. And it’s where a lot of sellers get caught off guard. So, why the disconnect? And how can you set yourself up to be one of the 4 in 10 that get top dollar? Let’s break it down. What Should You Really Expect To Get for Your House? That 40% may sound low at first, but it’s not. If you look back to the last typical year for the housing market (2019), what we're really seeing is a return to what’s normal ( see chart below ). If anything, slightly more homeowners are able to sell above list price today compared to 2019:
Show More

That House That’s Been Sitting Could Be Your Best Shot at a Deal

June 24, 2026
Open up a home search and you'll see them. Listings that have been on the market for two months. Three. Some longer. Most buyers scroll right past them, assuming something’s wrong with the house. But that instinct could be costing you, since the longer a home sits, the more motivated the seller usually gets. Where Some Buyers Are Finding Better Deals If affordability has been your #1 hurdle to buying, here’s a surprisingly simple strategy that could help you finally get your foot in the door. Start with the homes that have been sitting the longest. That’s often where the best deals are. Here’s why. Data from Realtor.com shows there’s a connection between longer time on the market and lower sales prices. Basically, the longer a house sits, the more likely it is that the seller will reduce the price (see graph below): 

Two Big Reasons To Move This Summer

June 20, 2026
A lot of people who want to move are telling themselves the same thing: " Maybe I'll just wait until later this year once things calm down ." While waiting sounds like a good plan, there's something worth knowing before you decide. Rates aren’t expected to change much, so if that’s the #1 reason you’re waiting, it may not pay off. And there may be other things you miss out on in the meantime. Historically, Summer is one of the strongest seasons of the year for both buyers and sellers. And if you delay your move until Fall or Winter, some of those opportunities may already be fading. Buyers: Fresh Inventory Is Your Real Summer Advantage One of the biggest frustrations buyers have faced over the past few years has been a lack of affordable options . Maybe you’ve run into that yourself: You find a house you like, but it's out of your budget. You find something in your budget, but you don’t like it. Or worse, nothing interesting hits the market for weeks. Historically, Summer helps with that. Looking at data from the last few years, Summer months consistently bring more sellers into the market than later in the year. And that gives buyers a real window of fresh choices. According to Realtor.com , any given Summer month typically sees about 32% more fresh options than the average month from September-December.

Should You Pay for Your Buyer’s Closing Costs? What Sellers Need To Know.

June 17, 2026
A few years ago, sellers could get away with saying "no" to just about everything. No repairs. No concessions. No negotiation. If buyers wanted the house, they pretty much had to take it on the seller's terms. But now that inventory’s grown, negotiations are becoming a normal part of the process again. That's why one of the most important things sellers need to understand right now is this: The goal isn't to “win” every negotiation. Sometimes, it’s worth meeting buyers where they are to get a deal done, fast. One example? Helping with a buyer's closing costs. Let’s break that down, so you know what to expect if it comes up in your sale. What Are Buyer Closing Costs? Closing costs are the extra expenses buyers pay on top of their down payment when they purchase a home. Freddie Mac gives some examples : Loan origination fees Appraisal and inspection costs Title and attorney fees Survey fees and more Typically, buyer closing costs range from about 2% to 5% of the home’s purchase price. So, on the typical $400,000 home, that could mean anywhere from $8,000 to $20,000 out of pocket. And in today’s affordability-challenged market, that upfront cash can be a major hurdle for some buyers – even if they can comfortably afford the monthly mortgage payment itself. That’s why more people are asking sellers for help. And More Sellers Are Saying “Yes” According to the latest data from Zillow , 67% of sellers reported paying some or all of the buyer’s closing costs in 2025 (see chart below) :

What Rising Inflation Means for Your Move

June 12, 2026
Data shows inflation is moving in the wrong direction. But before the headlines send anyone into a panic, here's what's actually going on, why it matters for the housing market, and what it means if you're thinking about buying or selling. Inflation Went Up – Here’s What That Actually Means The government tracks inflation in a variety of ways. One is something called PCE – the Personal Consumption Expenditures Price Index. It measures how much more (or less) people are paying for goods and services compared to a year ago. And just based on your own expenses, you can probably guess which way that’s trending. That’s the one everyone is talking about right now. Check out the yellow line to see how that’s spiked since February ( see graph below ). A big driver of this jump is the ongoing conflict in the Middle East, which has pushed gas and energy prices significantly higher.

Could Moving a Bit Further Out Change Everything About Your Budget?

June 10, 2026
Whether you're dreaming about buying your first home or wondering if it’s time to move on from the one you're in, affordability is probably weighing on your mind. Home prices are still high in many markets, and even though things have improved a bit over the past year, making the numbers work can still feel like a stretch. But the people finding ways to move right now usually have one thing in common. They didn't wait for affordability to come to them. They went looking for it. According to PODS , 61% of people across all generations say affordability is the biggest factor when deciding where to move. And it's led a growing number of people to do one thing – broaden their search to include more affordable areas they hadn't seriously considered before. As PODS , put it: ". . . moving is increasingly driven by affordability, connection, and quality of life. As economic pressures persist, Americans are taking a more intentional, values-driven approach to where they choose to live.” It’s Not Just the Home Price – It’s the Whole Cost of Living Here's where it gets really interesting. When people talk about moving for affordability, they're not just talking about finding a cheaper house. They're thinking about the full picture. What does it actually cost to live somewhere? WalletHub looked at exactly this, measuring housing costs as a share of median monthly household income across every state ( see map below ). Take a look at where you live on that map. The lighter the blue, the more affordable it generally is to live there. The darker the blue? Just the opposite. 

The Real Reason Some People Are Still Moving Right Now

June 6, 2026
You may be telling yourself you’re going to wait to move – maybe you’re hoping mortgage rates will come down, prices will fall, or the market will feel a little easier. And honestly? A lot of people feel that way right now. But here’s what some are starting to realize. Waiting doesn’t usually fix the thing that made you want to move in the first place. Your family still desperately needs more room. Your empty nest still feels too...empty. Your parents or grandparents still need you to live closer. You just got married... or divorced. Your vision of retirement has you living somewhere else. Eventually, life can reach a point where waiting feels harder than moving. That’s why some people are still deciding to buy right now, even in today’s market. Not because conditions are perfect . But because the life changes behind their move never really went away. And maybe that’s exactly where you are too. If so, you’re certainly not alone. The Real Reasons People Move Data from the National Association of Realtors (NAR) shows 1 in 5 buyers last year said they felt like they had to purchase a home at that time, no matter the market. That's an important reminder right now. Sure, the dollars and cents of your move have to make sense for you. But big life changes happen whether mortgage rates and home prices are high, low, or somewhere in between. And those big life events happen more than you may think. NAR says roughly 22.5 million people experience major life changes in a typical two-year span ( see graph below ): 

Less House, More Home: Why Smaller Homes Are Paying Off for Today’s Buyers

June 2, 2026
You started shopping with a specific mental image of your future home in your mind. Then the houses in your budget came in smaller than you pictured. That’s the reality for a lot of buyers right now. Affordability is tight. But don’t let that discourage you. Going smaller might actually be a smart play in today’s market – and the upside can be bigger than you'd think. Let’s break down two places to look where smaller won’t necessarily feel like a compromise. Homebuilders Are Focused on Smaller Options Lately For starters, smaller is kind of on trend right now. Newly built homes have been shrinking for years. According to the latest data from the Census , the median square footage of new single-family homes has been falling overall since 2014 ( see graph below ):

Newly Built Home Prices Hit a 5-Year Low

May 30, 2026
If you’ve always assumed a newly built home is just not in your budget , you should know the math just got a little friendlier. The median sale price of a newly built home is now at its lowest level since 2021, according to the latest data from the Census . And on top of that, builders are still rolling out incentives to bring buyers through the door. Here's what's happening, and what it means if you're shopping right now. Prices on Newly Built Homes Have Come Down After a steep climb during the pandemic years, prices have eased a bit. The median sale price of newly built homes is sitting at about $390,000 nationwide. That’s the lowest it's been in nearly five years ( see graph below ):

What Most Veterans Don't Know About Their VA Home Loan Benefit

May 27, 2026
Nearly half of Veterans (49%) feel homeownership is currently out of reach, according to a recent survey from NewDay USA . But many are closer than they think. And you might be, too. If you’re a Veteran, you probably know the Veterans Affairs (VA) home loan benefit exists – it's been around for over 80 years. What you might not know is what it actually covers. Three misconceptions trip up Veterans the most (see graph below): 

The Pricing Mistake That Could Cost You Your Sale

May 23, 2026
Most sellers come into the market with one number in mind. And it’s often the one that costs them the most. That's their asking price . A survey from Realtor.com shows about 8 in 10 (80%) of sellers expect to sell at or above their asking price today. But here’s where things get interesting. In reality, only about 4 out of every 10 (roughly 40% ) actually do. That’s a big gap. And it’s where a lot of sellers get caught off guard. So, why the disconnect? And how can you set yourself up to be one of the 4 in 10 that get top dollar? Let’s break it down. What Should You Really Expect To Get for Your House? That 40% may sound low at first, but it’s not. If you look back to the last typical year for the housing market (2019), what we're really seeing is a return to what’s normal ( see chart below ). If anything, slightly more homeowners are able to sell above list price today compared to 2019:
Show More