The U.S. housing market has shifted towards a more balanced state in 2026, with mortgage rates stabilizing and home prices easing. Real estate agents report more buyers moving due to life circumstances, indicating early signs of increased activity. Respondents in the CNBC Housing Market Survey noted a shift from a buyer’s market to a balanced market.

Many sellers are cutting prices to attract buyers, with 92% of agents reporting price reductions in the fourth quarter. Despite historically high prices, buyers are adjusting to the new normal and compromising less on home features. However, more sellers are delisting properties due to reluctance to cut prices.

Despite a slow end to 2025, agents expect an improvement in sales in the first quarter of 2026. Most agents anticipate a better year overall compared to the previous year. With more inventory available and buyers adjusting to economic conditions, sentiment is shifting from anxiety to cautious optimism in the market.

Read more at CNBC: Agents say starting to balance out