After a few years that felt like a rollercoaster ride, the housing market is finally catching its breath. If you've been on the sidelines waiting for things to settle down, 2026 might just be your year. The frantic bidding wars are behind us, and the market is shifting toward something more balanced—dare we say, more normal?

The National Picture: Steady as She Goes

Here's the story for 2026 in a nutshell: modest growth, improving affordability, and more homes to choose from. Home sales nationally are expected to jump nearly 10% by the end of 2026, with existing home sales forecast to reach an annualized rate of 4.446 million. That's a welcome change after 2025's sluggish market.

Home prices are expected to rise modestly, with national forecasts ranging from 2% to 4% growth. Some experts are even more optimistic—the National Association of Realtors projects median house prices will rise approximately 4% in 2026. This slower pace might not make headlines, but it's actually good news for buyers who've felt priced out.

Mortgage rates are expected to decline to around 5.9% by the end of 2026, down from the 6-7% range we've been stuck in. Even a half-percent drop can translate to meaningful savings on monthly payments, bringing more buyers off the bench.

What the Regions Are Telling Us

The national numbers tell only part of the story. Real estate is local, and 2026 will look quite different depending on where you live. Here's what HouseJet discovered in their research:

Northeast: Holding Strong

The Northeast is showing remarkable resilience. Markets in the Northeast are seeing pricing push upwards 2.4% quarter-over-quarter, bucking some of the cooling trends elsewhere. Atlantic City, New Jersey, is projected to see an increase of up to 4.3%, benefiting from greater affordability compared to nearby metropolitan areas.

Limited inventory continues to keep prices elevated across the region. If you're a seller in the Northeast, you're still in decent shape. But buyers will need patience and realistic expectations.

Midwest: The Quiet Achiever

While coastal markets grab the headlines, the Midwest is quietly becoming one of 2026's hottest opportunities. The Midwest is seeing prices rise, while markets in the South and West are likely to see small price declines.

Saginaw, Michigan, is projected to see around 3.8% appreciation. Most Midwest markets remain undersupplied, exerting sustained pressure on prices. Cities like Columbus, Kansas City, and Raleigh are attracting remote workers and investors looking for affordable markets with strong fundamentals.

Columbus is expected to see year-over-year price increases between 2.8% and 4.5%, with the median home price rising from $275,000 to between $282,700 and $287,375. The Midwest's diverse economies, lower unemployment, and job growth in healthcare, tech, and logistics make it a smart bet for long-term stability.

South and Southeast: Mixed Bag

The South and Southeast present a more complex picture for 2026. In Southeast Florida, single-family median sales prices are expected to appreciate at a modest pace below 5%, with supply at a healthy level of about 6 months.

However, approximately 24 Florida housing markets are projected to see home prices decline by mid-2026, with areas like Punta Gorda, North Port, and Cape Coral experiencing the most significant price moderation. These markets saw explosive growth during the pandemic, and now they're settling back to earth.

Rising insurance costs, particularly in flood-prone areas, are adding pressure. But it's not all doom and gloom—South Florida is on track to have the second-highest number of home sales of $10 million and up for a calendar year, with 426 ultra-luxury sales projected by the end of 2025. The high-end market remains strong, driven by international buyers and cash purchases.

Southwest: Adjusting Course

The Southwest saw a slight rent decline of -0.09% in recent data, reflecting the cooling happening across the region. Cities like Austin, Phoenix, and Dallas experienced massive growth over the past few years, and now they're adjusting.

Sun Belt metros like Austin, Phoenix, and Tampa have seen quicker inventory recovery than national averages, leading to more balanced markets. Denver and Dallas have returned to or exceeded pre-pandemic inventory levels, giving buyers more options and negotiating power.

This rebalancing doesn't mean these markets are crashing—it means they're normalizing after unsustainable growth. For buyers who were previously priced out of these hot markets, 2026 could offer opportunities.

Northwest: Golden State Stabilizing

California's housing market is finding its footing after some turbulent years. The California median home price is forecast to rise 3.6% to $905,000 in 2026, with existing single-family home sales expected to increase 2% to reach 274,400 units.

Lower interest rates and a slightly improved housing affordability environment will give room for modest growth. The Pacific Northwest, including Oregon, continues to attract tech workers and climate migrants. Oregon's real estate market is expected to continue outperforming national averages through 2026, driven by the region's tech corridor expansion and commitment to sustainable infrastructure.

North: Steady and Predictable

The broader northern tier, from the upper Midwest through parts of New England, continues to show stability. These markets didn't experience the wild swings of coastal or Sun Belt cities, which means they're well-positioned for steady, sustainable growth in 2026.

The Bigger Picture

One of the most encouraging trends heading into 2026 is improving inventory. After years of limited supply, more homes are finally coming to market. Housing inventory is expected to improve modestly in 2026, likely in the range of 6% to 7% growth.

This matters because more options mean less competition and better negotiating power for buyers. Baby Boomers looking to downsize, combined with homeowners finally willing to sell despite giving up low mortgage rates, should help ease the supply crunch.

What Does It All Mean?

As Mike Oddo, CEO of HouseJet, wisely notes: "The market can impact homebuying and selling, but it doesn't necessarily dictate exactly why you should or shouldn't buy or sell a home. That's a personal decision based on a number of factors outside of the real estate market."

The 2026 forecast suggests we're entering a more balanced period. Buyers will have more choices and breathing room. Sellers can still command fair prices, though the days of automatic bidding wars are largely over. For most people, that's actually refreshing news.

Whether you're looking to buy your first home, sell and upgrade, or invest in rental property, 2026 offers opportunities in different regions for different reasons. The key is understanding your local market dynamics and making decisions based on your personal circumstances, not just market timing.

The housing market rollercoaster has slowed to a more manageable pace. And honestly, after the past few years, that sounds pretty good.