H
ome prices are expected to fall in 22 of the U.S.’s top 100 cities in 2026, according to a new Realtor.com study. The report projects that mortgage rates will ease to an average of 6.3% next year, down from 6.6% in 2025, creating a more buyer‑friendly environment. “2026 will be a year where the market steadies and moves back toward normal,” says senior economist Jake Krimmel.

    The forecast anticipates a modest uptick in existing‑home sales, with 4.13 million transactions projected for 2026 versus 4.07 million in 2025—an increase of less than 2 %. This slight rise reflects lower borrowing costs and strong wage growth, which should encourage more buyers to enter the market.

    Price declines are concentrated in the Southeast and West. Seven of the eight largest Florida cities—except Miami—are slated for drops. Cape Coral‑Fort Lauderdale is expected to see the nation’s biggest decline, with prices falling 10.2 %. The North Port‑Sarasota‑Bradenton area follows with an 8.9 % drop. Krimmel notes that these markets have seen expanded inventory and a post‑pandemic slowdown in demand, which are driving the projected decreases.

    In contrast, the remaining 78 major cities are forecast to experience modest gains, with a median price increase of about 4 %. The study’s methodology weighed factors such as inventory levels, new construction, price trends, wage and job growth, and unemployment rates across the 100 cities.

    Overall, the analysis suggests that 2026 will bring a more balanced housing market, where neither buyers nor sellers hold a clear advantage.