Housing Market Outlooks & What They Mean for Your Business

Almost one month into 2026, a clear consensus has emerged among housing market forecasters: This year is expected to be one of gradual normalization, rather than a dramatic rebound. For those of us in the industry, this means opportunity—but only for businesses that adapt their strategies and adjust their goals for a market moving toward more balanced, rate-sensitive demand.

Detailed here are outlooks for mortgage interest rates, housing inventory, and home prices and sales as well as tips to help you achieve success in the coming year.

Mortgage rates predicted to fall

Fannie Mae’s December 2025 Economic and Housing Outlook predicted that the 30-year fixed rate at 5.9% by the close of 2026. Meanwhile, at the Mortgage Bankers Association’s (MBA) 2025 Annual Convention and Expo, MBA Chief Economist Mike Fratantoni said that rates will hover between 6% and 6.5% this year.

Lower, more stable rates typically lead to a bump in purchase activity and a meaningful jump in mortgage originations. Additionally, existing homeowners may find it advantageous to refinance their mortgages to lower their monthly payments or pay off their loans faster.

Tips for 2026 success

  • Get your pre-approval machine tuned up. With more buyers entering the market, you will want fast turn times and cleaner pipelines.
  • Reconnect with past clients. Falling rates give you a natural reason to reach out—whether it’s to spark a refinance conversation or revisit a move they put on pause when rates were higher.
  • Educate with confidence. Sharing simple, upbeat explainer content—social posts, short videos, email tips—can help your audience better understand what falling rates mean for their budgets.
  • Team up early. Real estate professionals and loan officers who co-host market education sessions can establish themselves as go-to experts—well before buyer and seller activity kicks into high gear.

Housing inventory forecasted to increase

Realtor.com®’s most recent Monthly Housing Market Trends Report showed that the number of actively listed homes rose 12.1% year over year. While this marked the 26th consecutive month of annual inventory gains, active listing growth has slowed in each of the past six months, signaling a plateau in the post-pandemic inventory recovery. (Active listings were as high as 31.5% back in May.)

Nadia Evangelou, senior economist for the National Association of REALTORS® (NAR), said to anticipate further inventory increases in 2026, which will help create a more balanced housing market. But Evangelou also stressed that affordability would remain the market’s #1 challenge. “Even with more homes available,” she said, “many are still priced out of reach for the typical buyer, which continues to hold back overall activity.”

Tips for 2026 success

  • Highlight new inventory—but don’t ignore the affordability gap. Guiding buyers toward realistic price ranges and monthly payments will ensure expectations stay grounded.
  • Use inventory boosts to revive fence-sitters. Clients who paused their search in 2024–2025 may be ready to jump back in with more options available.
  • Double down on listing marketing. More inventory means more competition. Real estate professionals should sharpen their pricing strategies, refresh listing photography, and rely on loan officers to provide creative financing options.
  • Build an “affordability toolbox.” Use buydown strategies, down-payment assistance programs, and payment comparisons to make properties more attainable in a still-pricey landscape.

Prices expected to rise at a lower rate

After rising sharply last year, home prices are expected to increase at a much slower rate throughout 2026. Prices may even fall in various metros in the South and Southwest as they shift toward being buyer’s markets.

A recent U.S. News & World Report analysis predicted that from the end of last year through 2030, prices will rise at or slightly above the rate of inflation, for an estimated increase of about 10% to 11%. The National Association of REALTORS® forecasted prices to climb 4% next year, supported largely by job growth and persistent supply shortages.

Tips for 2026 success

  • Help buyers set realistic expectations. With price growth cooling, there’s less urgency and more room for thoughtful decisions—opening the door for buyers who once felt priced out.
  • Use “micro-market” data to your advantage. If your region is shifting toward a buyer’s market, lean into negotiation strategies. If it’s still tight, prepare buyers for competitive bids.
  • Remind sellers that pricing strategies matter more than ever. Gone are the days of “list it high and hope.” Smart, data-driven pricing will keep days on the market in check and maximize final sale prices.
  • Share calm, steady messaging. When price appreciation cools, consumers can become confused. Being the steady voice that explains what it all means builds trust and credibility.

Home sales poised for a comeback

The real estate industry may finally see a long-awaited surge in activity in 2026, with home sales poised for a significant comeback. Speaking at NAR NXT, The REALTORS® Experience, NAR Chief Economist Lawrence Yun predicted a 14% nationwide bump in existing home sales this year in addition to a 5% rise in new home sales.

Tips for 2026 success

  • Ramp up lead nurturing now. With sales expected to rise, the professionals who already have engaged pipelines will be positioned for success.
  • Strengthen builder relationships. New home sales rising 5% means extra opportunities for loan officers and real estate professionals with strong builder partnerships.
  • Prepare for a “busy season that never ends.” If 2026 produces a surge, staying organized—with CRMs, automated follow-ups, and referral systems—will be the difference between growth and burnout.
  • Stay hyper-visible. Share weekly market updates, client success stories, and educational updates so buyers and sellers think of your name first.

Ready to connect?

As 2026 approaches, one thing is clear: Success will belong to the professionals who plan smart, work hard, and strengthen their partnerships. Co-marketing with your referral partners should be an engine for growth—not a source of manual work, compliance headaches, or guesswork. That’s where Volly Network Connections can help.

Built to support today’s loan officer–realtor relationships, Network Connections removes the friction from co-marketing by automatically generating compliant, co-branded property websites and flyers the moment a new listing hits the MLS. No more typing in property details, no more manual setup. Just instant, compliant marketing that helps you gain an immediate edge over your competitors.

Simply put, Volly Network Connections can make every partnership more powerful and productive, setting you up for success in 2026. Contact us today to schedule a demo!