No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
Last year was a relatively healthy one for the housing market, especially during the latter part of the year. And based on what analysts have seen thus far, many of the housing trends that we saw last year will likely continue for most of this year, of course, with a few key changes and rising challenges.
That said, in order to help you prepare for successfully navigating the current 2026 market, there are a few housing trends and market predictions that you should be aware of—regardless of whether you are selling or purchasing a home this year.
According to the National Association of Realtors (NAR), existing home sales — which include previously owned single‑family homes, condos, and townhomes — were at a **seasonally adjusted annual rate (SAAR) of about 4.13 million homes in November 2025. This figure represents the annualized pace of sales based on closings during the month.
This was 0.5 % higher than in October 2025, marking three straight months of modest increases as mortgage rates eased slightly, but it was still about 1% lower year‑over‑year compared with November 2024.
Yet another trend to look out for this year is the continued growth of the luxury real estate market. Analysts expect the demand for exclusive residential properties or homes to continue throughout most of 2026. What’s more, many people are now rethinking their second homes, thanks to the increase in remote work.
In fact, there has been an increasing trend to make second homes the permanent primary residences for those who did leave the city. And for others, swapping their primary residences for second homes or making them co-primary is also gaining more momentum and is likely here to stay at least for another year.
Speaking of leaving the city, clearly remote working has pushed people out of cities and led to an increase in home buying in the suburbs. It is clear that suburban areas have seen higher home sales growth as compared to cities or urban areas, and many homebuyers have increased their willingness to commute.
Homebuyers are more likely to find traits that are increasingly desirable in the suburbs—larger houses for more time spent at home, dedicated office space, personal outdoor space, as well as proximity to beaches, trails, and open space.
As a result, for the last 12 months, competitive real estate markets such as Seattle, Denver, Portland, Omaha, Lexington, Indianapolis, Oklahoma City, Sacramento, Oakland, and Tulsa boomed and are expected to continue to thrive in 2026, especially in their suburban areas.
Furthermore, many people are leaving high-tax areas as we speak. Thus, the effects of the ultra-affluent leaving high-tax areas will likely be felt throughout. This is especially true since many foretell that others will follow suit and take advantage of lower taxes since remote work opens up the potential to work from anywhere, and finances are tight for many people.
A historically tight supply of existing homes for sale is the name of the game in 2026 — a trend that shows little sign of slowing in 2026. Housing inventory is poised to continue in the very low range at least for the next few months.
Thanks to the increase in homebuyers, the increased demand for more living space, and dipping mortgage rates, the housing market has been somewhat competitive. But all signs indicate that inventory will be tight but not low in major sought-after areas throughout the country.
A significant number of new builds available for sale is more likely in 2026. Of course, new houses will help to ease the need for more homes on the market, so the pressure to build sooner rather than later is going to be on for the rest of this year.
In 2026, mortgage rates in the U.S. have shown a downward trend, offering relief to homebuyers after a period of elevated borrowing costs.
Early last year, average rates on 30‑year fixed‑rate mortgages moved lower as inflation pressures eased and markets adjusted to expectations that the Federal Reserve would maintain or reduce key interest rates. This shift has helped decrease monthly mortgage costs, making homeownership slightly more accessible for buyers who had been priced out during previous rate peaks.
Lower rates can stimulate demand by reducing financing costs, encouraging some buyers to re‑enter the market or consider upsizing. For existing homeowners, lower rates also create opportunities to refinance, potentially reducing long‑term interest expenses and freeing up household income.
While rates remain above historic lows, the recent dip in 2026 is meaningful for those planning to buy or refinance, contributing to a more active housing market after a slowdown in 2026.
That said, analysts say it is inevitable that, in the upcoming months, mortgage rates will be rising. So if you are considering a new home purchase or refinance, then now might be the best time to secure financing.
Ultimately, these are just a few major trends to keep in mind this year.
Are you curious about mortgages, or are you ready to apply for one to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, WA, serving Washington, Oregon, Idaho, Colorado, and California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages, get pre-approved for a mortgage, or visit our website to get an instant rate quote.
Whether you’re buying a home or ready to refinance, our professionals can help.
{hours_open} - {hours_closed} Pacific
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
Adjust the parameters based on what you want to track