Happy New Year! As we step into 2026, the frantic "boom and bust" energy of the early 2020s has officially left the building. Real estate experts are calling this year "The Great Housing Reset." After years of record-high rates and "locked-in" inventory, the market has finally found its rhythm.
If you’ve been holding your breath, here is the deep dive into why 2026 is the year to finally exhale.
1. The Thaw of the "Lock-In" Effect
For the last three years, millions of homeowners refused to sell because they didn't want to trade their 3% mortgage for a 7% one. But life doesn't wait for the economy. Families have grown, retirees are ready to downsize, and career paths have shifted. In 2026, we are seeing a significant "thaw." National forecasts predict a 7% to 10% increase in inventory as sellers prioritize their lifestyle over their interest rate. This means more choices for you and a more balanced playing field.
2. Mortgage Rates: The New "Normal"
The era of 3% rates is in the rearview mirror, but the 8% peaks are gone, too. We’ve entered The Great Plateau, with rates hovering in the low 6% range. While it's not the "steal" of 2021, it provides something far more valuable: Predictability. Buyers can now budget with confidence, and sellers can price their homes without fear of a sudden market freeze.
3. Appreciation vs. Affordability
Wages are finally growing faster than home prices for the first time in nearly a decade. While home values are expected to rise a modest 1% to 3% this year, the "affordability gap" is narrowing. You aren't just buying a house; you’re buying into a market that is finally sustainable.
The 2026 Strategy: Don't try to "time" the bottom. In a stable market, the best time to move is when your current home no longer fits your life. Focus on the long-term equity because in 2026, slow and steady wins the race.
Let's connect to discuss your real estate goals!
Imran Ali
The Ali Group
📧 [email protected]
📞 604-616-555
