What to Expect from the Real Estate Market in 2026 and How to Prepare

The real estate market is always evolving, and 2026 promises to bring some notable shifts for buyers and sellers alike. With mortgage rates expected to dip below 6.5%, many people are wondering how this will affect their ability to buy or sell a home. Dominic Fonte & Associates, a trusted team with over 550 five-star reviews, offers clear insights into national and local trends, Federal Reserve interest rate considerations, and practical tips for navigating the market. Whether you are a first-time buyer, an experienced homeowner, or simply interested in the market, this guide will help you prepare for what lies ahead.

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Mortgage Rates and What They Mean for You

Mortgage rates have a direct impact on how much homebuyers can afford and how attractive the market is for sellers. Experts predict that mortgage rates will fall below 6.5% in 2026. This shift can make a significant difference:

• For buyers: Lower rates mean smaller monthly payments and more purchasing power. For example, a 0.5% drop in interest rates can reduce monthly payments by hundreds of dollars on a typical 30-year mortgage.

• For sellers: More buyers entering the market can increase demand, potentially driving up home prices and shortening the time homes stay on the market.

  
  

It’s important to watch how the Federal Reserve adjusts interest rates throughout the year. Their decisions will influence mortgage rates and, by extension, the housing market’s overall health.

National and Local Market Trends to Watch

The real estate market does not move uniformly across the country. While national trends provide a broad picture, local factors often have a stronger impact on your buying or selling experience.

• Urban vs. suburban shifts: Many buyers continue to seek suburban homes for more space and affordability, but some urban areas are seeing renewed interest due to job growth and lifestyle changes.

• Inventory levels: Some regions face tight housing supply, which favors sellers, while others have more balanced or buyer-friendly markets.

• Price growth: Home prices are expected to rise moderately in many areas, but some markets may see faster appreciation depending on local economic conditions.

  
  

Dominic Fonte & Associates recommend researching your specific area’s market conditions and working with local experts who understand these nuances.

Tips for First-Time Buyers

Buying your first home can feel overwhelming, but the right approach makes it manageable and rewarding.

• Explore available programs: Many states and cities offer first-time buyer assistance programs, including down payment help and favorable loan terms.

• Get pre-approved: Knowing your budget before house hunting saves time and strengthens your offer.

• Consider long-term costs: Look beyond the purchase price to property taxes, insurance, and maintenance.

• Work with trusted agents: Experienced agents can guide you through paperwork, negotiations, and inspections.

  
  

Dominic Fonte & Associates have helped many first-time buyers find homes that fit their needs and budgets by connecting them with suitable programs and lenders.

Advice for Experienced Buyers and Sellers

If you have bought or sold homes before, 2026 still holds opportunities and challenges.

• For buyers upgrading or downsizing: Use the lower mortgage rates to your advantage, but also consider market timing and your financial goals.

• For sellers: Pricing your home right is crucial. Overpricing can lead to longer time on market, while underpricing might leave money on the table.

• Stay informed: Market conditions can change quickly. Regularly check updates from trusted sources and consult your real estate team.

  
  

Dominic Fonte & Associates’ track record with over 550 five-star reviews shows their ability to support clients through various market cycles.

How to Make Smart Moves in 2026

Preparation is key to success in any real estate market. Here are practical steps to take now:

• Review your finances: Check your credit score, save for a down payment, and reduce debt.

• Research your market: Understand local trends, pricing, and inventory.

• Connect with experts: Find a real estate team with strong local knowledge and positive client feedback.

• Stay flexible: Be ready to adjust your plans based on market changes and personal circumstances.

  
  

By taking these steps, you can position yourself to benefit from the expected market conditions in 2026.