Summary
A report by Redfin predicts that U.S. home sales will increase by 3% in 2026, following a slow recovery in affordability. Rising home prices and high borrowing costs have reduced homebuying power this year, but a gradual improvement in affordability is expected as incomes rise faster than home prices.
Key Facts
- Home sales are expected to rise 3% in 2026 from 2025.
- Rising home prices and high borrowing costs have limited homebuying this year.
- From February to May, home sales fell each month compared to the previous year.
- In October, 445,607 homes were sold, showing a 2.4% increase from a year ago.
- The median home sale price in October was $439,869, up 1.3% from October 2024.
- Redfin predicts that mortgage rates will stay in the low 6% range next year.
- Improved affordability is expected as incomes rise faster than home prices.
- Many people, especially younger buyers, may still find homeownership out of reach.
