What 2026 Could Mean for the Housing Market...

As we head into what is sure to be another interesting year, I think it’s a good time to zoom out and talk about what 2026 could look like and what many of the big players and economists are predicting.

Before we look forward, it’s worth looking back for a second.

2025 was a better year than 2024, but that wasn’t a very high bar. 2024 saw one of the lowest numbers of homes sold in recent history. What 2025 did well was bring more consistency and stability back into the market.

And one thing I’ve learned over the years is this:

Nothing makes people more nervous than big swings in the market. When things feel unpredictable, people tend to do nothing. When the market feels more “normal,” confidence comes back and people are more willing to move forward with their plans.

That idea shows up clearly in how experts are talking about 2026.

So what are they predicting for 2026?

• Mortgage rates: Most forecasts expect rates to ease slightly compared to recent highs, likely settling somewhere in the low 6 percent range. That’s not a return to ultra-low rates, but it does help affordability feel more manageable.

• Home prices: Nationally and here in New Jersey, prices are expected to rise modestly. Think low single-digit appreciation rather than big jumps. The theme is stability, not a surge and not a crash.

• Inventory: Inventory is expected to continue improving slowly. In New Jersey, supply will likely remain tight compared to other states, but buyers should see more options than they’ve had over the past few years.

• Market balance: Many economists are describing 2026 as a more balanced market. Sellers still benefit from strong demand in desirable NJ towns, but buyers should see less frenzy, more room for negotiation, and fewer panic-driven decisions.

What this means locally in New Jersey

Our market is supported by strong fundamentals: proximity to NYC, transportation, schools, and limited land for new construction. Because of that, New Jersey is expected to stay relatively resilient, even as the market normalizes. Pricing, preparation, and strategy will matter more than simply showing up.

The big takeaway

2026 is shaping up to feel more steady and predictable. That sense of normalcy is often what gives people the confidence to make moves they’ve been putting off.

If you’re thinking about buying, selling, or just keeping an eye on the market, this is a good year to plan thoughtfully rather than react emotionally.

As always, happy to talk through what this could look like in your specific town or situation.