Insight and optimism as key indicators point to improving conditions in early 2026
The U.S. housing market has faced challenges over the past few years — namely tight inventory, elevated mortgage rates, and affordability pressures. Yet the most recent economic data shows genuine signs of momentum building as we head into 2026. For both prospective homebuyers and sellers, understanding these trends now can help you make smarter, more confident decisions. Below, we break down the latest housing statistics and what they mean for your real estate journey.
Existing Home Sales Showing Stronger Activity
According to the National Association of REALTORS® (NAR), existing home sales increased 5.1% in December 2025, jumping to a seasonally adjusted annual rate of 4.35 million units — the fastest month-over-month pace in nearly three years.
This acceleration came as mortgage rates eased modestly, with rates around the low 6% range by year-end — the lowest since late 2024.
Here’s why that matters:
- A pace of 4.35 million annual sales is a meaningful lift in market activity compared with the levels earlier in 2025.
- The December monthly gain beat economists’ expectations, indicating renewed buyer interest.
- All four major U.S. regions saw month-over-month sales growth as mortgage rates softened and inventory grew slightly.
What this means for buyers: Even if affordability still presents challenges, there are more committed buyers re-entering the market when conditions improve — especially with lower rates. For sellers, this uptick can be an opportunity to position your home during a window of rising buyer confidence.
Home Prices Are Rising — But Growth Is Moderating
The median existing home price reached $405,400 in December, marking the 30th consecutive month of year-over-year price gains.
However, the year-over-year increase was modest — and regional trends suggest price growth is slowing in some markets, especially where inventory has increased.
Why this matters:
- Price stability can make entry into homeownership more achievable, especially for first-time buyers.
- Sellers in markets with balanced supply-demand dynamics may enjoy strong pricing without the volatility of earlier in the cycle.
CapCenter’s expert mortgage advisors can help buyers understand home-price trends locally and identify opportunities where affordability aligns with long-term value.
Housing Supply: Small Improvements but Still Tight
Existing-home inventory in December grew by about 3.5% year-over-year to roughly 1.18 million homes — a modest increase but still well below pre-pandemic norms.
Here’s the takeaway:
- Buyers now have slightly more choice compared with a year earlier.
- Sellers still benefit from relatively low competition, meaning your home can attract strong interest — especially with strategic pricing and marketing.
CapCenter’s real estate team can provide current market insights for your area, helping you decide when and how to list your home.
New Home Sales and Construction Trends Point to Future Growth
Data from the U.S. Census Bureau shows new single-family home sales remain elevated compared with a year ago, even as median prices have softened in some months.
Meanwhile, construction indicators show:
- Housing starts and completions for single-family homes remain robust, with starts above recent historical averages.
Growing construction activity is crucial, as more housing supply can reduce affordability pressure over time — especially if builders continue focusing on entry-level and move-up homes.
What These Trends Mean for You
For Homebuyers
- Lower mortgage rates + rising sales = more buyer confidence and activity.
- Increased inventory means more options — and professional support is more valuable than ever.
CapCenter’s Zero Closing Cost mortgages make buying more affordable by reducing upfront costs — a major advantage in today’s shifting market.
For Home Sellers
- Even with tight inventory, December’s sales growth shows buyers are active when rates dip and affordability improves.
- Sellers who price homes competitively can take advantage of renewed buyer engagement.
CapCenter’s realty team can help you time your sale and maximize value with strategic market positioning.
Final Thoughts: Trends Point Toward a Healthier Market in 2026
After years of constrained activity, several key indicators — monthly sales gains, modest rate declines, and incremental supply improvements — suggest the housing market could be transitioning toward greater balance. Buyers and sellers who prepare now, understand trends, and enlist trusted partners stand to benefit from early signs of renewed momentum.
Whether you’re planning to buy your first home or considering selling in this evolving market, CapCenter is here to guide you. From Zero Closing Cost mortgage solutions to local real estate insights, our team helps empower confident decisions throughout your homeownership journey.
