As we kick off 2026, the housing market is entering a new phase: one that feels more balanced and functional after several years of rapid shifts. Here’s what you should know as we look ahead.
1) Market Stability Over Volatility
Experts broadly expect pricing and activity to normalize in 2026:
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Home prices are forecast to grow more slowly - not skyrocketing, but still positive - in most markets.
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Inventory levels are stabilizing after historic lows, which helps ease some competitive pressure for buyers and improves options on both sides.
This isn’t a runaway seller’s market. This year, we can expect to see realistic pricing, strategic prep, and clear expectations mattering more than ever.
2) Mortgage Rates: Slight Relief, Still Elevated
Mortgage rates are expected to modestly ease, hovering in the mid-6% range. This is better than recent highs, but still above long-term historical lows.
Impacts to watch:
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Buyers may see slightly improved affordability, especially on adjustable-rate products or new construction incentives.
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Sellers should be aware that borrowing costs still shape purchasing power, so pricing and buyer-education strategies are key.
3) Inventory and Sales Activity
Looking ahead:
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National forecasts project higher sales and slightly more inventory in 2026, including both new construction and existing homes.
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A more balanced market gives buyers more choices and time to decide, but hotspots will still vary widely by region and price point.
According to local data, the Colorado market is already showing signs of balance — more homes on the market, more buyer negotiating power, and pricing that isn’t moving as sharply as in past years. But for anyone making a move this year, the hyperlocal data is far more important than any national, state, or even citywide trends. Understanding what’s happening in your neighborhood or zipcode will give you a leg up on the competition, whether you’re buying or selling.
4) What This Means for Buyers
Buyers in 2026 may see:
✔ More inventory to choose from
✔ Slower price growth (better breathing room)
✔ Mortgage rates that are slightly more manageable
Tip: Being pre-approved, ready to act when the right property hits, and flexible on neighborhoods or housing types can make a big difference.
5) What This Means for Sellers
Sellers should focus on:
✔ Realistic pricing based on comparable sales in your neighborhood (especially if inventory is up)
✔ Strong presentation + staging — make homes stand out
✔ Education on market conditions (set expectations on timing and offers)
As the market becomes more balanced, strategy is more critical than ever to stand out from the competition while also achieving your personal selling goals.
At 8z, we believe ‘there is a market in every market.’ What’s most important is that you make the best move for you and your family, when the time is right for you. From there, I can help you create a strategy that’s tailored for you to succeed - regardless of market conditions. Feel free to reach out whenever you’re ready to discuss your 2026 real estate goals.
