Market KnowledgeUncategorized November 21, 2025

Why 2026 Could Be the Year for Home Sellers

After a challenging and mostly stagnant housing market in 2025, experts predict a major turnaround in 2026. If you’ve been waiting for the right time to sell, this could be your opportunity.
The Forecast: A Strong Comeback
According to the National Association of REALTORS® (NAR), home sales are expected to jump 14% nationwide in 2026, following minimal growth in 2025. New-home sales are also projected to rise by 5%, signaling renewed confidence among buyers and builders.
This surge won’t come at the expense of price stability. NAR forecasts that home prices will climb another 4% in 2026, supported by steady job growth and persistent inventory shortages. For sellers, this means your home’s value is likely to rise—not fall.
Why the Market Is Turning Around
Several factors are setting the stage for this rebound:
  • Steady Job Growth: A strong labor market is giving buyers the financial security they need to make big moves.
  • Lower Mortgage Rates: Rates are expected to average around 6% in 2026, down from 6.7% this year. While we won’t see the ultra-low 3% rates of the past, even modest declines can unlock significant buyer demand.
  • Builder Activity: Homebuilders are adding supply, helping ease some inventory pressure.
  • Mortgage Applications Rising: Applications for home purchases are already up 31% compared to last year, a clear sign that buyer interest is growing
Who Will Drive the Market?
  • Repeat Buyers Dominate: Baby boomers and move-up buyers with strong equity are leading the charge. Many are buying with cash or leveraging years of appreciation.
  • First-Time Buyers Face Challenges: They’ve dropped to an all-time low of 21%, far below their historical norm of 40%. The median age for first-time buyers is now 40, as affordability hurdles like high rent, student loans, and childcare costs persist.
Pricing Still Matters
Even in a stronger market, homes that linger on the market often require price reductions. MLS data shows:
  • After 15–30 days: average cut of 6.1%
  • After 91–120 days: reductions can exceed 10%
  • Over 120 days: 13.8% cutCorrect pricing and strong marketing will be critical for sellers who want to maximize their return.
Bottom Line
With improving affordability, strong buyer demand, and rising prices, 2026 is shaping up to be a great year for home sellers. If you’ve been waiting for the right time to list, this could be it.
Ready to plan your sale?
📩 DM me for a free market analysis and personalized strategy.
Jane Kane
Real Estate Sales Executive
Coldwell Banker Realty
Direct: (714) 425-8500
Office: (949) 552-2000
DRE # 01001623