As the housing market continues its slow recovery, homebuyers may finally see a glimmer of hope in 2026. Real estate experts are calling this a potential "reset" year, offering more breathing room for those seeking to purchase a home after years of challenging market conditions.

The upcoming year is expected to bring subtle but meaningful shifts, with housing inventory gradually expanding and giving buyers more negotiating power. According to Realtor.com, new construction has been steadily increasing, allowing homes to sit on the market longer and creating more opportunities for potential purchasers.

Despite these positive signals, the market isn't suddenly becoming affordable. Median home prices remain approximately 25% higher than 2020 levels, and 30-year fixed mortgage rates are predicted to stay above 6%. Chris Reis, a broker with Compass in Seattle, describes 2026 as a "transitional year" where the market will find its equilibrium after pandemic-driven disruptions.

Several major housing forecasters predict modest price changes, with some metropolitan areas experiencing flat or even declining home values. Particularly in western and southern regions, buyers might discover more room for negotiation. Joel Berner, senior economist at Realtor.com, notes that builders are increasingly willing to offer incentives and price cuts to move recently completed inventory.

The 10 largest U.S. metros expected to see the most significant home-price declines include markets primarily in the West and South. These projections consider multiple factors, including local economic conditions, mortgage rate expectations, and current housing inventory levels.

While the housing market isn't experiencing a dramatic transformation, the incremental changes represent a positive trend for potential homebuyers. Increased supply, more negotiation opportunities, and a stabilizing market suggest that 2026 could be the year many Americans have been waiting for in their home-buying journey.

Mortgage rates, currently averaging around 6.2%, are anticipated to remain relatively consistent. This stability, combined with growing housing inventory, provides a more predictable landscape for those considering entering the real estate market in the coming year.