2026 REAL ESTATE OUTLOOK: WHY NEXT YEAR COULD BE THE BEST TIME TO SELL YOUR HOME

If you’ve been waiting for the right moment to sell your home, 2026 may finally be the year the market turns in your favor. After several years of record-low transactions, affordability challenges, and cautious buyers, new projections show a meaningful shift ahead — one that could bring stronger demand, more activity, and rising home values.

Here’s what sellers need to know.

A MARKET WITH REAL MOMENTUM IS FORMING

For the past three years, the housing market has been operating at its slowest pace since 1995. High interest rates and limited affordability kept millions of buyers on the sidelines.

But those conditions are beginning to change.

The National Association of Realtors® (NAR) is now predicting a major rebound in 2026 — with existing home sales projected to jump 14% after years of stagnation. New-home sales are expected to rise as well.

According to NAR Chief Economist Lawrence Yun, "Next year is really the year that we will see a measurable increase in sales." After years of caution, the pent-up demand is finally ready to move.

PRICES EXPECTED TO RISE — NOT FALL

Despite the slowdown in activity, home prices have remained stable nationwide. Now, NAR is forecasting that home prices will rise another 4% in 2026 due to a combination of:

• Solid job growth
• Persistent housing shortages
• Strong underlying demand from buyers
• Gradually improving mortgage rates

In other words: sellers are not walking into a declining market. Quite the opposite. The fundamentals are pointing toward appreciation, not depreciation.

BIG POLICY CHANGES MAY BOOST BUYER ACTIVITY

On the policy side, several major changes could stimulate the market even further:

1. Portable Mortgages
The idea of allowing homeowners to “take their mortgage with them” when they move is gaining national attention. If implemented, this could dramatically increase mobility by eliminating the fear of losing a low interest rate.

2. 50-Year Mortgages
Longer mortgage terms are being discussed as a way to improve affordability and reduce monthly payments for buyers. While not finalized, these concepts show the level of creativity policymakers are bringing to the housing slowdown.

3. New Federal Leadership at the Fed
President Trump has made it clear he plans to replace the current Federal Reserve Chair with someone aligned with his goal of lowering interest rates. His administration has openly signaled a strong desire to bring rates down to stimulate economic activity, including home sales.

Even small rate drops can make a big difference. As Yun notes, 2026 mortgage rates are expected to average around 6%, down from roughly 6.7% this year. That modest improvement alone is enough to bring more buyers back into the market.

BUYER INTEREST IS ALREADY BUILDING — THEY JUST NEED THE RIGHT CONDITIONS

Mortgage applications throughout 2025 have been consistently higher than the year before — a clear sign that buyer demand is alive and well. The challenge has been converting applications into closings.

In early 2025, only 55% of mortgage applications were resulting in actual home purchases, compared to 77% in 2021. That gap is largely due to affordability.

As rates improve and new programs roll out, more of those eager buyers will finally be able to make the move they’ve been waiting for.

WHAT THIS MEANS FOR YOU AS A SELLER

If you’re thinking about selling your home next year, here are the key takeaways:

• Buyer demand is rising and will strengthen through 2026
• NAR predicts double-digit increases in home sales
• Home prices are projected to increase another 4%
• Affordability improvements could unlock millions of sidelined buyers
• Policy changes may further accelerate mobility and demand
• You may be able to sell into a stronger, more active market than we've seen in years

After a long stretch of uncertainty, optimism is finally returning to the real estate market.

If you’re planning a move in 2026, now is the time to start preparing — whether that’s reviewing your home’s value, discussing light improvements, or outlining your selling strategy.

I would love to guide you through the process and help position your home to take full advantage of what’s coming next year.

Written by:
Worrell Thomas
Real Estate Advisor
Century 21 Connect Realty
678-236-4262
worrellt@c21connectrealty.com
www.worrellthomasrealestate.com