Happy New Year 2026: What Today’s Real Estate Data Means for Buyers & Sellers
As we kick off 2026, the real estate market looks more balanced, more strategic, and filled with opportunity — and the data supports it. After several years of rapid changes driven by interest rates and low inventory, the market is entering a phase that rewards preparation and smart decision-making.
Home Sales Are Expected to Rise
According to the National Association of REALTORS®:
Existing-home sales are projected to increase by approximately 14% in 2026 compared to 2025.
This signals renewed buyer activity and increased movement — especially for well-priced, well-presented homes.
Mortgage Rates Are Stabilizing
After peaking above 7% in recent years:
The average 30-year fixed mortgage rate is entering 2026 around 6.1%–6.3%, offering buyers more breathing room and purchasing power.
While rates remain higher than historic lows, even small reductions significantly impact monthly payments — particularly in higher-priced markets.
Home Prices Continue to Grow (More Sustainably)
Major housing forecasts show steady appreciation:
Realtor.com projects national home prices to rise about 2.2% in 2026.
Zillow economists anticipate modest price growth with fewer markets seeing declines.
This creates a healthier environment where buyers aren’t rushed, and sellers can price confidently without relying on bidding wars.
Inventory Is Improving
After years of tight supply:
For-sale inventory is expected to increase by nearly 9% year-over-year in 2026.
More inventory means better options for buyers and more competition — making pricing, staging, and marketing more important than ever for sellers.
California & Los Angeles Market Snapshot
California home sales are forecast to rise roughly 2% in 2026.
The statewide median home price is projected to reach approximately $905,000.
Los Angeles County continues to see stable pricing around $850,000+, with improved inventory and steady demand in prime neighborhoods.
What This Means for 2026
Buyers gain leverage through better selection and negotiation opportunities.
Sellers benefit from increasing activity — if they prepare and price strategically.
Investors see a rebalanced market that still supports long-term appreciation and wealth building.
The takeaway? 2026 is not about rushing — it’s about strategy. Those who plan early and rely on real data will be positioned to succeed.
Here’s to a new year, new opportunities, and confident real estate decisions.