Thinking about buying or selling a house in 2026? If so, you are likely wondering how the housing market will shape up in the new year — and whether it will offer more favorable conditions than this year did.

The news is good, but not great. In 2026, “it won’t be a quick price correction, and it won’t be a recession,” said real estate company Redfin in its annual predictions. Instead, the “Great Housing Reset will be a yearslong period of gradual increases in home sales and normalization of prices as affordability gradually improves.”

Will mortgage rates come down?

Most experts expect mortgage rates to “stay elevated and relatively steady” in 2026, said Experian . There are two dueling forces at work here keeping rates roughly where they are: the first is persistent inflation

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