The 2026 Housing Market Outlook: Will Inventory Finally Improve?

The 2026 housing market is expected to see increased availability with a rise in both existing and new home sales. Mortgage rates may slightly drop, and median home prices could increase by about 4%. New home construction is forecasted to grow by 4%, boosting supply. Higher loan limits and low down payment options may improve opportunities for first-time buyers. Preparing with mortgage pre-approval is advised to compete effectively in a low-inventory market.