The real estate market remains steady in 2025, with national average prices flat, disappointing sellers who lack pandemic advantages. Buyers struggle with affordability and uncertain mortgage rates, leading to a stagnant market. Analysts predict slow growth in 2026, with Zillow anticipating a peak growth of nearly 1.9% in August.

Economists forecast declining prices for several quarters ahead, not expecting national price increases until 2028. Fannie Mae projects mortgage rates to drop to 6.4% by year-end 2025 and 5.9% by 2026, though this estimate may be optimistic. The Mortgage Bankers Association also predicts a potential rate drop by 2027.

Inventory is set to outpace sales, offering buyers more options in 2026. Fannie Mae forecasts an 8.9% increase in home sales by the end of 2026, a relatively positive outlook. The National Association of Realtors ties its sales forecast to a potential drop in mortgage rates to 6%, which could make 5.5 million more households affordable for purchase.

Despite high interest rates, the Mortgage Bankers Association anticipates a rise in sales for 2026, projecting 5 million new and existing home sales compared to 4.8 million in 2025. Real estate markets are cyclical, so predictions for 2026 may evolve as the year progresses.

Read more at Yahoo Finance: Experts Predict Where the Housing Market Is Headed in 2026