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We are finally seeing real signs of relief in both home prices and monthly payments, and that is welcome news for anyone thinking about buying, selling, or right-sizing in the coming year. After several years of rising costs, this will be the first time since 2020 that monthly payments are expected to decline as interest rates trend lower.
Realtor.com’s latest forecast supports what we are already feeling in the market. Several key areas, including parts of Northern California, the Pacific Northwest, Raleigh, Denver, and Phoenix, are projected to see price declines in 2026. Much of Florida is also expected to soften, with the exception of Miami, which may still see modest growth.
Even in markets where prices may edge up slightly, lower mortgage rates are set to improve affordability. If rates fall to the mid-six percent range as projected, buyers could still see lower monthly payments even with a one to two percent price increase. Cities like Austin, Dallas, Nashville, Charlotte, and Miami are expected to benefit from this dynamic.
The overall forecast points to slightly improved affordability in 2026 as easing rates and slower price growth begin to balance the market. Realtor.com expects the monthly payment on a median-priced home to slip by about 1.3 percent next year, marking the first year over year decline since 2020. We are not completely out of the affordability challenge, but the direction is finally shifting in a positive way.
If you are planning to make a move, this could be the right moment to prepare your strategy. Call me and let’s build a plan that fits your goals.
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Source: Fox Business
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