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Will the Housing Market Rebound? Predictions for 2025 and 2026 | ” Your Real Estate ADVOCATE & Trusted Advisor”

The U.S. housing market is expected to see gradual growth through late 2025 and into 2026, with no major price drops on the horizon.
Existing-home sales rose 2% in July 2025, inventory is up 15.7% year-over-year, and the median price is holding steady at $422,400.
Mortgage rates, a key driver of affordability, are projected to dip from ~6.4% in late 2025 to potentially 5.8–6.0% in 2026, which could bring more buyers into the market.
Home prices are forecasted to rise modestly, with regional differences playing a big role in affordability and opportunity.
Inventory levels are at their highest since 2020, giving buyers more choices than in recent years.

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