The U.S. housing market is expected to stabilize in 2026, with Zillow forecasting a modest 1% increase in national home values. This signals an end to the extreme volatility of recent years, moving towards a period of slow, steady growth.
The national housing market is shifting from a strong seller's market to a more balanced, or "near-neutral," state. This means fewer bidding wars and more negotiation power for buyers, while sellers must focus more on strategic pricing and marketing.
National trends mask significant local variations, with different metropolitan areas moving in opposite directions. Sunbelt markets like Austin are experiencing price declines, while Northeast and Bay Area markets like Hartford and San Francisco remain strong seller's markets.
Housing affordability is showing signs of improvement as the typical monthly mortgage payment has decreased compared to the previous year. While still a major challenge, this trend, combined with modest price growth, offers some relief to prospective buyers.
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