Will the Housing Market Improve in 2026?
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Are you hoping to buy your forever home in the coming year? Is it a good time to buy a home?
We know and understand that the housing market can be difficult to navigate and finding your dream home can feel like an impossible task. The housing market has been volatile in recent years, driven by high mortgage rates and higher home prices and many potential home buyers want to know — will the housing market improve in 2026?
Realtor Jackie Giroux may be able to help answer your questions about the future of the housing market in the next year and beyond. With a first-hand perspective of the housing market in Lawrence, KS and the rest of the area — Jackie Giroux and her team are ready to help make you a homeowner.
5 Housing Market Predictions for 2026
Lawrence-area homebuyers who are interested in dipping their toes into the market and purchasing their first home or investing in real estate want to know if the market will improve in 2026. With mortgage rates expected to be lower, an increase in homes for sale, and more moderate home prices, the outlook for the housing market is positive and potential homebuyers are excited to see what the future looks like.
Here are a few predictions for the housing market in 2026 and beyond:
1. Mortgage Rates Will Decrease
Potential homebuyers can expect to see mortgage rates decrease below 6% in the next year according to many industry experts including Fannie Mae that project rates to reach 6.4% by the end of 2025 and 5.9% by the end of 2026. With the Federal Reserve lowering interest rates in September 2025, the projections for lower mortgage rates look even more realistic for homebuyers.
2. More Stable Home Prices
Homebuyers have seen home prices skyrocket in recent years that can be tied to multiple factors that include a high demand for new homes with low numbers of available homes, higher interest rates, economic inflation and more. With interest and mortgage rates expected to be lower in the next year and the supply of for sale homes expected to increase, homebuyers will see home appreciation rates that are more moderate — from 2% to 4% — which will contribute to more stable home prices.
3. Increase in Home Sales
The volume of home sales has decreased in many parts of the country in the past few years due in part to higher mortgage rates — but with lower interest rates and mortgage rates on the horizon, many industry experts are predicting a marked increase in home sales in 2026. Analysts at Fannie Mae and the National Association of Realtors (NAR) expect that home sales will increase by as much as 10%. The higher mortgage rates in past years have made many potential homebuyers wait to buy a home and those same homebuyers are expected to be back in the market as mortgage rates go down.
4. Increased Supply of New Homes
A primary reason why home sales have decreased in volume in the past few years is a simple lack of supply. Indications are that the number of homes available for sale will increase in 2026, providing potential buyers with more options on the market and more affordable prices. Industry experts expect there to still be a shortage of homes for sale, but even a small increase will have an impact on the housing market moving forward.
5. Gradual Shift to a Buyer’s Market
It has been a seller’s market in most recent years with higher home prices and limited availability — but market projections for the next year indicate a shift toward a buyer’s market. The anticipation of lower interest rates, increased inventory, lower appreciation rates, and additional factors are expected to create a more balanced market for those interested in buying a new home. While homes are still expected to sell quickly, homebuyers will be able to better negotiate prices.
Are you interested in purchasing a home next year? You may have questions about what the market will look like when you finally decide to buy your dream home. You may have questions like — will the housing market improve in 2026? Realtor Jackie Giroux may be able to help shed some light on the market and help you find your dream home right here in Lawrence.
Contact Jackie Giroux and her team today to kickstart your home buying journey!
