Moderate price growth, steady rates, and more homes hitting the market may shape your plans for next year.

Have you been wondering what the 2026 housing market might look like? With the year coming to a close, it’s a good moment to look at what many industry experts, both locally and nationally, expect to happen.

National expectations for 2026. Across the country, most analysts agree on a few main points.

Home prices are expected to rise slowly. Home prices are expected to rise, but at a slower pace. Current forecasts show an average appreciation of around 2%.

For example, if a home is worth $500,000 today, it may be closer to $510,000 by the end of 2026. It’s not the large jumps we saw a few years ago, but it’s still steady growth.

Interest rates may drift within a moderate range. A big question people ask me is about interest rates. Are they going to drop?

According to several projections, rates may fall within a range of about 5.6% to 6.6%. That’s a fairly tight spread, and it suggests we may not see the very low rates of the past. Still, a small shift in rates can make a real difference in your monthly payment.

Sacramento Region expectations for 2026. Here in the Sacramento region, I’m seeing a few trends that line up with what clients are telling me.

More sellers may relist in the spring. A lot of homeowners listed this year but didn’t get the offers they were hoping for. Many of them paused and plan to relist in the spring.

I’m also meeting people who love their low 2% to 4% interest rate but can’t stay where they are any longer. They may need a single-story home, more space, or a different location, so they’re starting to think seriously about moving in 2026.

More opportunities for buyers. Buyers who’ve been waiting for big price drops or big rate drops are realizing that those changes aren’t happening soon. If you’re hoping to buy in 2026, the good news is that you’ll likely have more choices than you did in 2025 because builders are still active and more resale homes are coming soon

More supply usually helps keep prices from jumping too fast, which is why appreciation is expected to stay moderate.

"2026 looks like a year of small adjustments: moderate appreciation, steady rates, and a noticeable increase in inventory."

What this means for sellers. We’re starting to see a buildup of inventory that could hit the market early next year. That’s why I’m recommending that sellers consider listing late January or early February if possible.

More inventory is good for buyers, but it also means sellers need to be smart about timing. Homes take some prep work, and it usually takes 30 to 45 days to get everything ready. 

Listing early before the spring rush can help you:

• Stand out while demand is still strong
• Face less competition from other listings
• Capture motivated buyers who want to move sooner, not later

What this means for buyers. 2026 is shaping up to be a year of more options and steady prices, not dramatic swings.

If you’ve been sitting on the sidelines:

• You may see more homes that fit your needs
• Prices are likely to inch up, not spike
• Rates may move within a moderate band, so a small change could still help your payment

Instead of trying to time the absolute bottom, focus on finding a home that fits your life and a payment that fits your budget.

Nothing in the data points to major swings next year. Instead, 2026 looks like a year of small adjustments: moderate appreciation, steady rates, and a noticeable increase in inventory.

If you’d like to talk about your plans or want help deciding the best timing for your move, reach out to me or anyone on our team at (855) 935-6673 or email us at [email protected]. Because with Made for More Realty, you can expect more and get more.