2026 Real Estate Predictions: A Year of Balance, Intention, and Opportunity

Unless there’s a significant economic shift, many forecasts for 2026 anticipate 30-year fixed mortgage rates averaging around 6.3% signaling that the market is moving away from extremes and toward something many of us have been craving: stability.

 After several years of volatility, the real estate landscape is expected to feel more balanced. Inventory should improve modestly, buyers are becoming more thoughtful and deliberate, and sellers are pricing with intention rather than urgency. While rates may remain above the historic lows of years past, buyers are adapting and prioritizing long-term value, lifestyle fit, and community over trying to perfectly time the market.

And if you know me, you know this already: I love a balanced real estate market for buyers and sellers. Let’s do it.  

What We’re Seeing Locally

Here in the Annapolis area we have more sellers preparing for late winter launches instead of waiting for the traditional spring rush. This earlier momentum could help spread activity more evenly throughout the year, creating healthier conditions on both sides of the transaction and fewer of those pressure-filled moments that defined recent markets.

The Bigger Picture

According to Compass’s Chief Economist, the market is transitioning into a more stable environment:

• Inventory is projected to rise, offering buyers more choice

• Home prices are expected to hold steady, not spike

• Income growth may outpace home-price appreciation, gradually improving affordability

After years of limited mobility - often referred to as “The Great Stay” - homeowners are starting to feel more confident about making a move. With pent-up buyer demand and shadow inventory waiting in the wings, 2026 is shaping up to be a year of increased activity - just not always in predictable ways.

What This Means for You

Those who thrive in 2026 won’t be chasing headlines or trying to game the market. They’ll be focused on preparation and clarity along with making thoughtful decisions rooted in lifestyle goals and long-term plans.

Whether you’re considering a move early in the year, exploring options for later in 2026, or simply wanting to understand what this next chapter could look like, I’m always happy to talk it through. A more balanced market rewards informed, confident decisions and that’s exactly the kind of market I love working in. Happy New Year!