The 2026 Housing Market Outlook is here, offering clarity in a market that hasn’t always been easy to interpret. After years of pandemic-driven extremes, the U.S. housing market is entering a new, more stable era—one defined by improving affordability, growing inventory, and renewed confidence from both buyers and sellers.

According to Compass’ latest 2026 Market Outlook, featuring insights from Tucker Volk, Broker Associate at Compass, the housing market is taking a meaningful step toward “normal.”

A New Housing Market Era Emerges in 2026

After four years marked by frozen migration patterns, volatile mortgage rates, affordability challenges, and uneven supply, many of the unusual dynamics of the early 2020s are beginning to fade. Mobility is slowly picking up, inventory is normalizing across many regions, and buyers and sellers are recalibrating expectations after years of rapid change.

In this next phase, home sales are positioned to grow, and affordability begins to improve as home prices level out and mortgage rates trend lower.

Four Key Signals to Watch in the 2026 Housing Market

Inventory
Buyers may benefit from approximately 10% growth in homes coming to market, creating more choice and easing pressure in many regions.

Home Prices
Prices are expected to rise modestly—around 0.5%—while incomes grow faster, helping affordability slowly improve.

Mortgage Rates
Rates are projected to trade between 5.9% and 6.9%, averaging near 6.4%, offering a more favorable financing environment than recent years.

Home Sales
Home sales could reach 4.25 million, a 5% increase over 2025, as improving conditions draw more buyers back into the market.

Why the 2026 Housing Outlook Matters

For anyone considering a move, investing, or planning ahead, the data points to clear momentum across key housing metrics. The market ahead is shaping up to be more balanced, more predictable, and filled with opportunity for those who understand the landscape.

A new era of the housing market is on the horizon—one defined by stability, improved affordability, and renewed movement.

👉 To explore the full Compass 2026 Housing Market Outlook, including national insights, visit the complete report Compass

Tucker Volk, a dedicated member of the Denver Foothills Property team, specializes in recreational and agricultural land, as well as “as-is” and fixer-upper properties. With a deep understanding of land use and a passion for Colorado’s Foothills, Tucker provides personalized guidance to help clients uncover the potential in every property.

Denver Foothills Property, powered by Compass, is your trusted partner in navigating the unique real estate opportunities of Colorado’s Foothills. From luxury homes to sprawling estates and land, we bring expertise, dedication, and an unmatched understanding of the market. Contact us today to start your real estate journey.