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n Jan. 2, 2026, at 5:25 p.m. EST, a segment on a possible housing market downturn aired on FOX’s LiveNOW with Andy Mac and Dave Meyer, Head of Real‑Estate Investing at BiggerPockets in Seattle. Meyer warned that while certain economic models point to a slump in specific sectors, the overall outlook for 2026 remains fairly balanced. Buyers may gain a slight advantage, yet high prices and mortgage rates still pose significant hurdles.
Realtor.com’s national forecast projects a modest rise in existing‑home sales this year, implying that more buyers could successfully navigate the market’s challenges. Key takeaways include:
- **Hot regions for 2026**: The Northeast is expected to lead price growth, with cities in that area seeing the largest increases in home sales.
- **Market metrics**: The average mortgage rate is projected at 6.3 %, easing affordability pressures slightly, while home prices are set to climb 2.2 %. Existing‑home sales should rise 1.7 % to about 4.13 million units, a modest rebound from the 30‑year low. For‑sale inventory is up roughly 9 % from 2025.
- **Buyer spending**: For the first time since 2022, buyers are forecasted to spend less than 30 % of their income on housing payments, signaling a shift toward a more balanced market. Nevertheless, high prices and rates continue to challenge affordability.
- **Seller dynamics**: The market is moving from a seller’s advantage toward equilibrium. In 2026, sellers may need to adjust expectations, especially for lower‑priced homes, as price cuts become more common. Homes above $1 million rarely see cuts, and inflexible sellers risk losing buyers. Yet many homeowners have long tenures, giving them leverage if they choose to sell.
Renters are also feeling the squeeze, particularly in the South and West, where softer demand is evident.
Overall, the report cautions that while the market may become more balanced, the improvement will be modest nationwide. Buyers and sellers should prepare for a gradual shift, with sellers potentially facing more competition and buyers needing to navigate persistent affordability challenges. The full Realtor.com report is available for reference.
