What To Expect in the 2026 Real Estate Market

By Chris Doherty

Christian Doherty lists and sells more homes than any other agent in the Greater Lowell, Massachusetts market with over 300 homes sold in the past 12 months. Chris is ranked in the top 1% of all agents in the United States.

What should you expect from the real estate market in 2026? Every year around this time, I like to step back and look at what’s ahead for real estate and the broader market. There’s always a lot of noise, a lot of predictions, and a lot of opinions floating around. If you’re thinking about buying or selling this year, here’s a realistic look at what 2026 may bring, based on what we’re already seeing.

Interest rates. There’s been a lot of talk about them coming down, but I want you to know that a total collapse is not going to happen. I do think we’ll see a slight pullback, but nothing significant. Buyers waiting for a big drop should understand that 2026 is not going to bring a collapse in the interest rate market.

Inventory. Homes have been gradually building on the market since COVID-19. While there are more listings than a few years ago, we’re still below historical norms. I expect the number of homes for sale to continue increasing. Part of that comes from properties that carried over from 2026 and are taking longer to sell.

As new listings come in during the spring market, the existing inventory adds up. The result is more options for buyers, slightly longer days on market, and more price stability. This isn’t a sudden shift, but a steady, elevated level compared to what we’ve seen before.

Buyers: Decisiveness wins in 2026. Homes that are priced right and show well are still moving, even though buyers are taking more time overall. Rates are likely to stay close to where they are, so waiting won’t really give you an advantage. When the right house comes along, and there’s activity at an open house, lowball offers aren’t going to work. Acting quickly and confidently is what puts buyers in a winning position.

Sellers: Preparation matters more than ever. We’re seeing some softening in certain segments, including condos, single-family homes, and multifamily properties, but not across the board. Properties are still selling, and prices are still moving upward. The difference now is that sellers need to be realistic. Homes need to look good, which means addressing cosmetic issues, decluttering properly, and taking care of outstanding items before listing.

This isn’t the market where condition doesn’t matter. Pricing strategically, often just slightly below recent comparable sales, is what creates strong results.

Government and housing affordability. As affordability continues to be a challenge, there’s going to be more attention from federal, state, and local governments. We’re already seeing discussions around rent control, longer mortgage terms, and programs that would allow buyers to carry an existing interest rate to a new home. Across both political parties, there’s pressure to find ways to make housing and rentals more attainable, and that conversation isn’t going away in 2026.

Rental Market. The rental market is in the middle of a transition. A lot of different factors are influencing changes that aren’t fully reflected in the data yet. What we’re seeing is rental pricing beginning to soften, along with an increase in available rental inventory. That trend is expected to continue through 2026, which brings some much-needed relief for renters.

When you zoom out, 2026 looks a lot like 2025. Whether you’re buying or selling, opportunities are still there if you move with confidence and understand the conditions. That’s what we focus on every day, and that’s how we help people reach their real estate goals heading into the year ahead.

I know the market can feel confusing sometimes. If you’re buying or selling and want a little guidance to make sense of 2026’s conditions, give me a call at 978-746-0124 or shoot me an email at chris@dohertyproperties.com. I help people navigate the market like this every day, and I’d be happy to help you, too.