From 2025 to 2026: 5 Real Estate Takeaways for the New Year
Published Jan. 8, 2026
January is a time of perspective, a great time for reflecting. Whether it’s for personal or professional goals, many of us ask the same question: what worked and what didn’t work last year? If you’re a prospective homeowner, it’s helpful to ask this question with the housing industry. You’ll want to know when to seriously dive into the market, how to time any potential rate drops, and begin strategizing your 2026 game plan.
- Improved Affordability
Realtor.com®’s chief economist cited three factors that have enhanced affordability for home buyers in the last year.
- Pricing sensitivity and balance
- There was a push and pull effect in 2025. With about 6% of sellers pulling their listings off the market, it’s reflective of a more balanced economy. While sellers have had to adjust property prices or delist altogether, buyers have been gifted with a little more room to negotiate. This is a big change considering that sellers had the upper hand throughout the pandemic.
- Monthly payments loosening
- It’s been forecasted that monthly payments are going to decrease for the first time since 2020. This prediction could mesh nicely with another forecast: incomes are expected to grow in 2026.
- Seller concessions, temporary buydowns, and loan programs
- The economic hurdles of the last few years have created exceptionally savvy home buyers. Throughout 2025, many turned to creative methods to boost housing affordability, including concessions with sellers, buydowns, and down payment assistance programs. They worked with knowledgeable lenders and agents to uncover options to keep costs down. This savviness will only continue in 2026.
The Takeaway: Link up with loan professionals to keep tabs on the economy and make a game plan, marking what conditions need to be met before you leap off of the sidelines.
- Rate Dips Boosted Competition
While rates didn’t drop below 6% in 2025 like many had optimistically predicted, the small nudges and dips still created sizeable boosts in mortgage applications. With every dip, the markets began moving faster. Admittedly, this meant that negotiating power was reduced for buyers, and fewer sellers were likely to offer concessions. A good note to keep in mind for rate dips in 2026!
The Takeaway: Buyers should prepare early and get preapproved ahead of time so that they’re better positioned to hop on rate drops when they happen. The early bird catches the worm!
- Emerging First-Time Buyers
With gradually increasing inventory and improving affordability conditions, first-time home buyers are emerging. They understand homeownership as a wealth-building tool and desire the stability it provides, wishing more than ever to kick their landlords to the curb. 2026 is predicted to entice first-time buyers off the sidelines even more, with forecasted rate drops and more homes on the market.
The Takeaway: Research first-time home buyer programs, many exist! There are regional down payment assistance options as well as ones for specific occupations.
- Home Sales Predicted to Rise
Redfin predicts that home sales will rise 3% in 2026, believing that a stronger home buying season awaits this spring. However, they’ve tempered this prediction with a realistic expectation: “sales will increase only slightly because affordability will improve just enough to lure some on-the-fence buyers.”
The Takeaway: While home sales may rise, more inventory is needed to match the incoming demand. A lot can happen between now and the spring. Again, pay attention to the market and keep your savvy loan officers on speed dial.
- A Much Needed Housing Reset
Redfin has predicted that 2026 will be the year of the Great Housing Reset. They’re forecasting a “yearslong period of gradual increases in home sales and normalization of prices as affordability gradually improves.” They’re optimistic that incomes will rise faster than home prices, for a potentially prolonged period not seen since the Great Recession.
The Takeaway: As mentioned, Redfin is touting a more optimistic prospective for 2026. While all those predictions could happen, it’s best to be realistic. As they say, prepare for the worst, hope for the best.
What a year 2025 was! While the housing economy seesawed and rates clung above 6%, the shifts in the market revealed some very helpful information for home buyers, homeowners, and sellers. Even small rate drops caused big waves, creating a flurry in mortgage applications. More and more first-time buyers are crawling out of the woodworks, ready to land in a home of their own. 2025 provided a year of preparations for the real estate market, heralding a much needed reset in 2026. It’s more important now than ever to link up with lenders and agents you trust. We’ve entered 2026 holding our breath, biding our time within the calm of a storm. Are you ready kick the year off with confidence?
Source: National Association of REALTORS®, Redfin