From Stalled to Moving: How 2026 Is Shaping Up for Buyers and Sellers

The Housing Market Is Waking Up Again (And 2026 Could Be Your Year)

After several years of high mortgage rates and nervous buyers sitting on the sidelines, momentum is quietly building under the surface of the housing market.

Sellers are reappearing. Buyers are re-engaging. And for the first time in a while, it feels like things are actually moving again.

Is it a frenzy? Nope. But it is a shift – and it could set the stage for a stronger, more active market in 2026.

Here are three big trends driving the comeback.

1. Mortgage Rates Have Been Trending Down

Rates are always going to bounce around. That’s normal. With all the economic noise right now, a bit of volatility is expected. But if you zoom out and look at the bigger picture, the direction lately has been encouraging.

Overall, mortgage rates have been drifting lower for most of this year – and in the last few months, we’ve seen some of the best levels of 2025 so far.

Sam Khater, Chief Economist at Freddie Mac, explains what that really means for buyers:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

In plain English: lower rates give you more buying power.

Redfin’s data shows a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than they could a year ago. That’s a big swing. And it’s one of the reasons activity is picking up again – buyers are finally able to make the math work.

2. More Homeowners Are Ready To Sell

For a long time, the “lock-in effect” froze a lot of would-be sellers in place. They didn’t want to give up their ultra-low pandemic mortgage rate, so they stayed put. That kept inventory tight and made it tough for buyers to find anything.

Now, that’s starting to crack.

As rates ease and life keeps happening – growing families, empty nests, job changes, aging parents – more homeowners are deciding they can’t stay frozen forever. They’re listing, even if it means trading up to a higher rate.

The latest data from Realtor.com shows the number of homes for sale has climbed and is approaching levels we haven’t seen in about six years. That return to more normal inventory is exactly what the market has needed:

• Buyers get more choices

• Sellers finally have a real path to move

• And the overall market moves closer to a healthy balance

3. Buyers Are Quietly Re-Entering the Market

It’s not just sellers making moves. As affordability has improved and options have expanded, buyers are waking back up too.

The Mortgage Bankers Association (MBA) reports that purchase applications are up compared to this time last year – a clear sign demand is rebuilding, not disappearing.

And the experts think this is just the beginning. Economists at Fannie Mae, MBA, and the National Association of Realtors all forecast moderate home sales growth heading into 2026.

This isn’t a “blink and you’ll miss it” boom. It’s a slow, steady recovery – the kind that usually lasts.

What This Means for You

The last few years have felt stuck: high rates, low inventory, and a lot of people in “wait and see” mode.

Now:

• Rates are lower than they were earlier this year

• More homes are hitting the market

• Buyer activity is building again

That combination is exactly what you want to see if you’re thinking about making a move in 2026.

Maybe you want to:

• Trade up to a bigger home

• Downsize and simplify

• Move closer to family

• Finally stop renting and buy your first place

Whatever your goal is, this quiet shift gives you time to plan, not panic.

Bottom Line

After a couple of slower, frustrating years, the housing market is finally turning a corner.

If you’re thinking about buying or selling in 2026, don’t wait until the last minute. Talk with a local real estate agent now about:

• What’s changing in your local market

• How much your current home is worth

• What it would take to be ready when the right opportunity hits

2026 could be your year – the smart move is to start planning for it now.