Home values are expected to grow 1.2% in 2026 as easing mortgage rates improve affordability and steady buyer demand, according to Zillow economists.
They also predict 4.26 million existing home sales next year, a 4.3% increase from 2025. After years of sparse inventory and high mortgage rates, demand to move has built up, they say, and that pent-up demand is expected to release as affordability improves.
"The housing market is finally settling into a healthier state, with buyers and sellers starting to return," said Zillow Chief Economist Mischa Fisher. "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."
View the entire report here.
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