Map: These are the hottest real estate markets in 2026

In 2026, the housing market is expected to be more balanced, with a slight rise in existing-home sales and home prices increasing by 2.2%. Mortgage rates are projected to average 6.3%, easing affordability pressures. Inventory is up 9%, and buyers may spend less than 30% of income on housing for the first time since 2022. The Northeast will see the highest price increases. Sellers should prepare for more price adjustments, especially in lower-cost homes.