THE 2025 REAL ESTATE MARKET BRIEF AND 2026 FORECAST
THE BIG STORY: BALANCE HAS ARRIVED
Nationally, housing inventory hit one million active listings this past year—the highest since 2019. It’s a milestone that came about due to 20 consecutive months of inventory growth, as the market continued to balance out after frothy home value appreciation immediately following the pandemic. Cities in the south and west in particular are experiencing inventory surpluses and affordability gains, which will offer buyers more options while increasing pressure on sellers to find middle ground. Average days on market returned to a pre-pandemic normal at 63 days. Twenty percent of listings reduced prices. Builders are offering major incentives —41% cut prices, and Lennar devoted 14% of home prices to concessions. Zillow reported affordability reached a three-year high in 2025.
2
THE 2025 REAL ESTATE MARKET BRIEF & 2026 FORECAST
FULTONGRACE.COM 3
FOR BU
The Rate Reality Mortgage rates currently range from 6% to 6.2%. If rates drop below 6% and stay there, we will see a feeding frenzy. Pent-up demand from two years of sidelined buyers is already starting to hit the market in some areas of the country—in fact, more than 11 major markets in the U.S. have shifted to “buyers markets” according to Realtor.com. When rates hit sub-6%, competition will intensify, multiple offers will return to many
desirable areas, and prices will accelerate even faster. The Equity Opportunity is Real
According to a study from the National Association of REALTORS®, a typical homeowner accumulated an unprecedented $147,000 in housing wealth over the last five years. As the old adage goes, time in the market, rather than timing the market, matters most. Bottom Line Acting before rates drop below 6% might be smarter—less competition, more negotiating power, and you can refinance later. Waiting for the “perfect” rate could mean paying significantly more in a bidding war. No matter your budget, my network of mortgage professionals knows every program and product to help you get into your home. Let’s explore your options today.
IN
UYERS
N 2026
FOR SELL ERS IN 2026
Location Matters Smart sales strategies this year really come down to your location. Some markets across the south and west have shifted significantly toward buyer advantages, while others in the midwest and northeast remain fairly balanced. That said, no matter where you are, if rates drop below 6%, seller conditions improve dramatically—pent- up buyer demand will create competitive environments we haven’t seen since 2021. Condition Matters Move-in ready properties command premiums. Homes needing substantial work experience longer market times. I have contractors and designers who can help you make strategic improvements that increase value. Bottom Line Pricing is critical this year. Nationwide, days on market are normal at 63 days. Overpriced homes sit. Well-priced homes move. Let’s work out the numbers together based on what your local market is showing.
FULTONGRACE.COM 7
THE RENT VS. BUY REAL ITY
E T . Y L Y
Here’s what consumers hear: renting is cheaper than mortgage payments in 50 of the largest metros. Here’s what you need to know: everyone who lives indoors pays a mortgage. The question is whether you’re paying yours or your landlord’s. First American’s data: If you bought in 2006 and stayed, homeownership put $181,000 in your pocket. Renting costs $268,000.
The equity gains available to homeowners right now are exceptional.
The biggest misconception? Most Americans think it takes 20% down to buy. It doesn’t. Having the right mortgage professional who knows actual products available—not just conventional wisdom—makes all the difference.
FULTONGRACE.COM 9
THE BOT TOM LINE
The opportunity to build wealth through real estate is as strong as it’s been in years. The consensus among economists: 2026 will see a 10-15% growth in transactions. Lawrence Yun, Chief Economist at the National Association of REALTORS® predicts measurable sales increases from slightly better mortgage rates and pent-up demand. Buyers: If you wait for rates below 6%, you’ll compete with every other buyer who had the same idea—driving prices higher. Act now with less competition.
this momentum market. If rates drop below 6% while you’re listed, you’ll benefit from surging buyer activity. The opportunity is real: balanced inventory, motivated sellers, builder concessions, and improving affordability after record appreci- ation. These conditions favor prepared home buyers and sellers. Real estate is about more than transactions— it’s about relationships and providing value at every stage of your journey. Whether you need a referral for anything related to your home and life, or you’re ready to make your next move, I’m here to help.
Sellers: Proper pricing and preparation matter. Well-positioned properties move quickly in
10
THE 2025 REAL ESTATE MARKET BRIEF & 2026 FORECAST
As Mark Fleming said:
"Affordability [in 2026] should continue to improve, allowing more households to unlock the homeownership door and start the equity building journey." That’s the opportunity. The question is whether you’ll take it.
FULTONGRACE.COM
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12Made with FlippingBook Online newsletter