The housing market in 2026 is experiencing a slow start across the country. Nevertheless, experts remain hopeful that a “reset” this year will enable the market to recover from conditions that have caused home sales to drop to their lowest levels in six years.
Pending home sales are decreasing, and properties are taking more than two months to sell. However, new listings are on the rise, and agents anticipate that falling prices will attract more buyers this spring, according to a recent spring housing forecast from Redfin. Agents express a “cautiously optimistic” outlook, believing that the “great housing reset” is approaching.
In the Baltimore metropolitan area, there has been a significant increase in new listings, rising by 8.8 percent, which is higher than in many other regions.
Ben Ambroch, a Redfin Premier agent based in Milwaukee—where home prices are climbing faster than in any other part of the country—predicts that 2026 will lead to a more balanced market over time.
“With each passing month, I notice more sellers willing to let go of record-low rates and accept that it’s time to move,” he stated in a news release. “This trend is contributing to increased inventory, which is attracting buyers. I’m seeing a consistent flow of house hunters touring properties, although they are taking their time, asking for inspections, and negotiating with sellers.”
Redfin describes the “great housing reset” as a prolonged period of gradual increases in home sales and a normalization of prices as affordability slowly improves.
“In the short term, this won’t be enough to make home buying accessible for Gen Zers and young families, who may have to make sacrifices, such as moving in with roommates or parents, or delaying starting a family,” Redfin noted in its 2026 housing forecast released late last year.
While the Baltimore area was not specifically addressed in Redfin’s 2026 housing forecast, a recent report commissioned by Live Baltimore highlights strong potential for residential growth throughout the region.
The report indicates a robust market for both new and renovated housing, with the possibility of accommodating over 20,000 households in the next five years. Opportunities for growth exist in every part of Baltimore City, emphasizing the city’s broad appeal across various neighborhoods, housing types, and price ranges.
On a national scale, Redfin’s report suggests that commuters will influence housing markets in New York City, while the Midwest and Great Lakes regions are attractive due to their affordability and lower risk of climate-related disasters. Additionally, smaller cities are appealing to graduates seeking affordable rents and stable careers in skilled trades, especially as AI limits entry-level white-collar job opportunities.
In addition to Long Island, the Hudson Valley, northern New Jersey, and Fairfield, Connecticut, other housing markets expected to gain traction in 2026 include Syracuse, New York; Cleveland; St. Louis; Minneapolis; and Madison, Wisconsin.
Conversely, home sales are likely to stagnate in areas prone to natural disasters, where insurance rates are high, as well as in regions where the return of remote workers has dampened real estate activity. These markets include Nashville, Tennessee; San Antonio; Austin, Texas; Fort Lauderdale, Florida; West Palm Beach, Florida; and Miami.
Here’s a summary of the market dynamics Redfin identified that are influencing spring housing sales:
Home sales: The average U.S. home sold in January spent 64 days on the market, marking the longest duration in six years and about a week longer than the previous year. Pending home sales have declined by 3.3 percent year over year. A silver lining in this sluggish market is that it provides buyers with more negotiating power, as sellers currently outnumber them significantly.
Buyer behavior: Many buyers are approaching the market with caution, with some opting out entirely due to economic uncertainties, high housing costs, and unstable job security amid ongoing layoffs. The average mortgage rate stands at 6.1 percent, close to its lowest in three years, yet still double the pandemic low. Meanwhile, the median home-sale price is $379,950, reflecting a 1.2 percent increase from a year ago.
Higher prices: Economic uncertainty and high living costs are prompting buyers to be more cautious, leading some to withdraw from the market. The median home-sale price is currently $379,950, up 1.2 percent year-over-year. The average mortgage rate is 6.1 percent, near a three-year low but still significantly higher than the pandemic low. While costs remain elevated, they are easing, which is improving affordability; the median monthly mortgage payment is $2,559, down nearly 5 percent from last year, while wages have increased by about 4 percent.
More homes on the market: New listings have risen by 1.1 percent year over year, marking the third consecutive week of increases following two months of declines, according to Redfin.
