2026 Housing Market Forecast: 22 Cities Face Price Drops as Mortgage Rates Ease and a ‘Reset Year’ Begins

Realtor.com forecasts U.S. home prices will rise 2.2% in 2026, with sales up 1.7% to 4.13 million, still below pre-pandemic levels. Mortgage rates are expected to average 6.3%. Prices are projected to fall in 22 major metros, especially in Florida and the Western Sun Belt. Rents may decline as multifamily supply increases.