What To Expect from the Housing Market in the Second Half of 2026
Team Olivieri
Monday, July 13, 2026
If the first half of 2026 has left you feeling stuck, you’re not the only one. Mortgage rates stayed higher than many people hoped, affordability remained tight, and uncertainty around the world added another layer of pressure.
That’s why so many buyers and sellers are asking the same thing: Will the second half of the year be any better?
While nobody can predict the future with certainty, there are a few signs that the housing market could start to move in a more positive direction.
One of the biggest reasons mortgage rates haven’t come down more is inflation. Higher energy prices and ongoing uncertainty overseas have helped keep inflation elevated.
The encouraging part is that oil prices have already started to ease. That matters because mortgage rates and oil prices often move in the same general direction.
If energy prices continue to cool, inflation may slow as well. And if that happens, mortgage rates could start to ease in the second half of the year.
That doesn’t mean rates will suddenly drop overnight. But it does mean the pressure may begin to shift in buyers’ favour.
Many people hope home prices will fall, but that’s not what most forecasts show.
Price trends will still vary by market, and some areas may see small declines. But at the national level, experts still expect home prices to rise modestly through the end of 2026.
That may not sound exciting, but it does mean buyers shouldn’t assume waiting will automatically lead to a better price later. And for sellers, it suggests home values may continue to hold steady or improve at a sustainable pace.
If rates improve and more buyers re-enter the market, competition could increase again. That could put modest upward pressure on prices in some areas, especially where inventory is still tight.
The housing market has felt quieter this year, but that doesn’t mean people have stopped wanting to move. Many have just been waiting for better affordability, lower rates, or more confidence in the market.
If conditions improve, more of that delayed demand could finally come back. That means the second half of the year may bring more activity than the first.
In other words, buyers who have been sitting on the sidelines could start making moves, and sellers may see more interest if they price and position their homes well.
The second half of 2026 probably won’t be perfect. But it could be better.
For buyers, that may mean slightly lower rates and more opportunity to act if the right home comes up. For sellers, it could mean stronger demand and more confidence that the market is still moving forward.
The key is not waiting for a perfect moment that may never arrive. It’s understanding the direction the market is moving and making your plan from there.
If you want to know what these forecasts mean for your next move, let’s talk about what’s happening in our local market and what it could mean for you.
That’s why so many buyers and sellers are asking the same thing: Will the second half of the year be any better?
While nobody can predict the future with certainty, there are a few signs that the housing market could start to move in a more positive direction.
Mortgage Rates Could Be Near a Turning Point
One of the biggest reasons mortgage rates haven’t come down more is inflation. Higher energy prices and ongoing uncertainty overseas have helped keep inflation elevated.The encouraging part is that oil prices have already started to ease. That matters because mortgage rates and oil prices often move in the same general direction.
If energy prices continue to cool, inflation may slow as well. And if that happens, mortgage rates could start to ease in the second half of the year.
That doesn’t mean rates will suddenly drop overnight. But it does mean the pressure may begin to shift in buyers’ favour.
Home Prices Could Keep Rising
Many people hope home prices will fall, but that’s not what most forecasts show.Price trends will still vary by market, and some areas may see small declines. But at the national level, experts still expect home prices to rise modestly through the end of 2026.
That may not sound exciting, but it does mean buyers shouldn’t assume waiting will automatically lead to a better price later. And for sellers, it suggests home values may continue to hold steady or improve at a sustainable pace.
If rates improve and more buyers re-enter the market, competition could increase again. That could put modest upward pressure on prices in some areas, especially where inventory is still tight.
More Homes May Sell
The housing market has felt quieter this year, but that doesn’t mean people have stopped wanting to move. Many have just been waiting for better affordability, lower rates, or more confidence in the market.If conditions improve, more of that delayed demand could finally come back. That means the second half of the year may bring more activity than the first.
In other words, buyers who have been sitting on the sidelines could start making moves, and sellers may see more interest if they price and position their homes well.
What This Means for Buyers and Sellers
The second half of 2026 probably won’t be perfect. But it could be better.For buyers, that may mean slightly lower rates and more opportunity to act if the right home comes up. For sellers, it could mean stronger demand and more confidence that the market is still moving forward.
The key is not waiting for a perfect moment that may never arrive. It’s understanding the direction the market is moving and making your plan from there.
If you want to know what these forecasts mean for your next move, let’s talk about what’s happening in our local market and what it could mean for you.
We would like to hear from you! If you have any questions, please do not hesitate to contact us. We are always looking forward to hearing from you! We will do our best to reply to you within 24 hours !