Rates may shift slightly, prices may grow steadily, and good homes will continue to move fast.

‘How is the market, and what’s coming next?’ I’ve been hearing this question a lot. As 2025 ends, it’s the perfect moment to look at past trends, current conditions, and what 2026 may bring.

Based on everything we’re tracking locally and nationally, here are my simple, realistic, and grounded predictions for 2026, no hype, no fear, just what the data tells us.

1. Stability in the market. We’ve been in a steady market throughout 2025, and I expect that stability to continue into 2026. Over the past several years, home values have grown at about 4% each year, and nothing in the data suggests a major swing in the opposite direction. Slow, steady appreciation is a sign of a balanced and healthy market.

2. Interest rates may fluctuate. While small ups and downs are expected, I don’t anticipate any dramatic drops or spikes. This is because inflation is still higher than the government would like. 

Interest rates are one of the key tools used to manage inflation, so they aren’t eager to make big changes that remove their ability to stabilize the economy. When you tune into the news, you might hear about slight shifts in interest rates, but don’t let that fool you into thinking we're in for anything like the wild swings of years past.

”Stable, steady growth, not extreme highs or lows, is the most realistic outlook for 2026.”

3. Inventory will likely remain tight. We’ve been dealing with low inventory for several years now. Many homeowners are holding onto the low rates they locked in years ago, and that’s limiting the number of homes coming to the market. I expect this trend to continue into 2026. That means:

• Well-priced, well-prepared homes will still sell quickly.

• Homes that are overpriced or not in good condition for the price point may sit longer.

Buyers are more value-focused today, especially with rates where they are, so pricing and presentation matter more than ever.

4. Unemployment. This is the one factor that could shake things up. If unemployment rises sharply, that can affect buyer demand and the overall economy. If it stays stable, the housing market likely stays stable with it.

I watch unemployment numbers closely because they have a direct impact on housing, even more than rates sometimes.

If you're thinking about a move in 2026, your situation is unique, and while general predictions are helpful, you deserve advice specific to your home, your neighborhood, and your goals.

I invite you to reach out for a complimentary, no-pressure strategy session. I can walk you through what these market expectations mean for your plans. Reach out at (651) 998-9829 or info@holzgroup.com. I’ll help you build a smart, confident strategy for 2026.