Homes that sold above list price likely received multiple offers. There was a 98.3% sale-to-list price, down 0.088 points year over year. In May 2026, 24.9% of homes in the U.S. sold above list price, down 0.083 pointsyear over year. There are currently 1,483,839 residential homes for sale in the United States. There are currently 1,483,839 residential homes for sale in the United States.…
Sellers who are considering a new home purchase also consider bridge loans, extending the closing timeline, sale-leaseback agreements, buy-before-you-sell programs, and home equity loans. Inventory will inch higher, giving buyers better options, yet affordability will still keep many on the sidelines,” Colorado loan officer Brittney Hansen told HomeLight. 41% of agents surveyed by HomeLight believe home prices will increase moderately (under 5%) in 2026. While prospective homeowners may be looking for a more favorable rate around 5.75% or lower, 2025 marked a year of adjustment and acceptance of persistently high interest rates. In HomeLight’s Lender Insights & Predictions for 2026, 87% of loan officers surveyed believe that there will be an increase in mortgage originations this year, with 44% predicting a gain of more than 10%.
“Higher policy rates weighed on not just demand but also supply, as current homeowners were reluctant to move and sacrifice lower mortgage rates. The U.S. housing market has been characterized by a persistent imbalance in recent months. Sun Belt states like Texas and Florida have been the most prolific home-building states over the past few years, and have recently seen affordability gains and buyer-friendly markets as a result. Housing gains move north as Sun Belt loses steam The housing market is shifting. A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable.
Even if we go negative year over year soon, we are in a much healthier spot with inventory than we were from 2020 to 2023. Housing inventory turned negative year over year as supply hit 795,921 vs 803,479 last year, with rates at 6.56%. Tracking this spread helps reveal shifts in borrowing costs and market confidence — wider spreads often mean higher risk and reduced affordability. This chart illustrates the spread between the 30-year fixed mortgage rate and the 10-year Treasury yield — a key indicator of mortgage market risk and lender sentiment. The Mortgage Purchase Applications Index tracks the number of mortgage loan applications for home purchases across the U.S.
What’s the forecast for US house prices in 2026?
“We will be closely watching upcoming pending home sales data, which lead existing home sales by one to two months, to gauge whether positive momentum will be sustained in the months ahead,” Feroli added. More recently, the impact of higher mortgage rates has been exacerbated by a labor market hiring rate that has slowed to near recession lows. In addition, homebuilders are continuing to offer rate buydowns — in which https://dominicandesign.net/the-state-will-not-participate-in-the-improvement.html they pay a sum upfront to help lower the buyer’s mortgage rate — in a bid to clear their inventory.
New Listings
Since early 2020, the largest total value gains have been in California ($3.4 trillion), https://belfastinvest.net/economy/est-company-opens-a-plant-for-roofing-and-facade.html Florida ($1.6 trillion), New York ($1.5 trillion) and Texas ($1.2 trillion). About one-quarter of the gains nationwide came from New York, which added $216 billion. The fastest way to reach our Media Relations team is to email
Pricing slightly below market value drives urgency
This suggests more of the recent gains in housing market wealth are coming from smaller markets as remote work and affordability hurdles continue to reshape where Americans live. Utah (23%), Texas (22%), Idaho (22%) and Florida (20%) saw the biggest share of housing market gains come from new construction over this period. A high or growing percentage of homes selling above list price indicates that the housing market is competitive and bidding wars are becoming more common.
Morgan Global Research sees U.S. house prices stalling at 0% in 2026, with a slight improvement in demand likely offsetting any increased supply. These are states that experienced booming demand during the pandemic from households seeking more space and relative affordability. Not only has this created space for new households to form, it also represents a massive amount of new wealth-building potential. The role of new construction New construction has added $2.5 trillion in housing value since early 2020 — about 12.5% of the nation’s total gain. That is the biggest increase of any state, and it accounts for one-quarter of the national growth.
Growing trend of digital real estate services
- Another digital real estate service that continues to impact the industry is iBuying.
- Looking ahead, home sales are expected to further improve gradually, with mortgage purchase applications ticking up in early January.
- Lenders mention a significant drop or stabilization in mortgage rates as the main driver of market activity in 2026.
- Not only has this created space for new households to form, it also represents a massive amount of new wealth-building potential.
- He has several years of experience reporting on the commercial real estate and insurance industries.
While fixed-rate mortgage rates are projected to stay elevated at 6+%, adjustable-rate mortgage (ARM) rates could tick downward if the Fed decides to ease, thereby making homes more affordable. Demand has been muted due to stubbornly high house prices, while supply has slowly but surely increased as new construction picks up. The $1 trillion club There are nine metro areas with housing markets worth more than $1 trillion, and collectively, they hold nearly one-third of the nation’s housing wealth (31.9%). Florida’s housing market fell by $109 billion, and California’s by $106 billion.
In 2025, the U.S. housing market experienced a dramatic slowdown, with economic uncertainties and record-high home prices driving historically low home sales. Housing demand rebounded last week even though the war with Iran continues and mortgage rates are higher today than before the war started. The second half of 2026 hinges on whether demand stays positive with mortgage rates near 6.60% and tighter comps from July onward. This data helps industry professionals, buyers, and sellers understand market conditions, inventory shifts, and potential pricing impacts. “As a result, we do not believe a modest lowering of the market mortgage rate will have a material impact on demand.” However, this policy might once again have limited impact on the housing market.
Pending sales rose to 63,971 versus 61,143 in 2025, inventory ended at 844,011, and price cuts were 39.57% versus 41%. Your weekly snapshot of U.S. housing trends from Lead Analyst Logan Mohtashami, with expert analysis and real-time charts on key market indicators. You are permitted to disclose the materials and information to your officers and employees on a need to know basis. All materials and information shared with you are, unless otherwise indicated to you, proprietary and confidential to J.P. “Secondly, most homebuilders already offer potential buyers mortgage rate buydowns of 100 bp to as much as 200 bp below the prevailing mortgage rate,” Rehaut said.
It analyzes millions of transactions, thousands of reviews, and other data points to find the best local agents for your needs. Our Agent Match tool can help you find the perfect real estate agent. IBuyers (the “i” stands for instant) have been around since the 2010s and are a solid option for home sellers seeking fast cash offers. Another digital real estate service that continues to impact the industry is iBuying. Digital real estate services, particularly AI, are changing how the industry operates.