Forecasters from Zillow and Realtor.com describe the current climate as "The Great Housing Reset," a period of gradual normalization.
Nominal home prices are expected to rise modestly by 1% to 3% , but because wages are growing at a faster rate (3.6%+), the "real" cost of buying is technically declining for many. home buyers
Experts and recent surveys highlight the psychological shift among current prospective buyers. Forecasters from Zillow and Realtor
“More than 3 in 5 (62%) Americans feel buying a home in 2026 is unrealistic. This is up significantly from 49% in our 2025 Homeowner Outlook report.” 1031 Exchange Services If you'd like, I can: “More than 3 in 5 (62%) Americans feel
Remain the largest buyer group, frequently making all-cash offers or large down payments using equity from previous homes.
Rates have stabilized in the low 6% range , with some forecasts predicting they could dip below 6% by late 2026.