Wondering what to expect from the housing market in 2026? You’re not the only one.
For the past few years, affordability has been the biggest barrier standing between most people and their next move. And a lot of buyers and sellers have been holding their breath waiting for things to get better. The good news? It’s finally happening.
In 2025, affordability was the best it’s been in three years. And experts agree the momentum will keep going in 2026. That outlook is based on their analysis of three key factors shaping the Wellesley MA real estate market in the year ahead: mortgage rates, inventory, and home prices.
Lower Mortgage Rates Are Already Here
Mortgage rates have already come down from their peak. By some counts, they dropped by almost a full percentage point over the course of the last year. And that’s a big deal, even if it doesn’t sound like it.
But how low will they go? And should you wait for them to come down more? Here’s your answer.
Forecasts suggest rates will stay relatively stable and hover in the low 6% range throughout 2026. That’s especially true when you look at recent mortgage rate forecasts.
Where rates go from here will depend on the broader economy, the job market, and any changes the Federal Reserve makes in monetary policy. The important thing to remember is this: rates are already lower than they were a year ago, which makes a 2026 move more realistic for many people.
- For buyers: Lower rates reduce monthly payments and increase buying power, helping more people qualify for homes that once felt out of reach.
- For sellers: Rates in the 6s may be the new normal. If you need to move, it’s still very doable—especially if you’re bringing equity to the table.
Even More Options Are on the Way
In 2025, the number of homes for sale increased by about 15%. As inventory improved, buyers regained something they hadn’t had in years: options, time to evaluate them, and negotiating leverage. That helped restore balance to the housing market, something we’ve been tracking closely as inventory trends across the market continue to evolve.
Inventory growth has also played a major role in slowing price growth, which directly supports improved affordability.
Experts at Realtor.com expect the supply of homes for sale to grow by another 8.9% heading into 2026.
- For buyers: More inventory means more choice and more room to negotiate.
- For sellers: Pricing your home correctly will matter more than ever to attract serious buyers.
Home Price Growth Is Slowing to a More Sustainable Pace
With more homes available, there’s less upward pressure on prices. While most experts agree prices will continue to rise nationally, the pace of that growth is expected to be much slower.
On average, forecasts call for about 1.6% price growth in 2026.
That’s reassuring if you’ve seen social media predictions claiming prices are about to crash. The reality of where home prices are heading is far less dramatic.
Some markets will outperform the national average. Others may see flat or slightly declining prices. That’s why working with a local real estate professional matters.
- For buyers: Slower growth means fewer surprises and more predictable budgeting.
- For sellers: A more balanced market helps protect your equity without overheating prices.
More Homes Will Sell in 2026
All of these trends—stabilizing rates, increased inventory, and moderated price growth—point toward improved affordability. And that’s why experts expect more homes to sell in 2026 than in the last two years.
As Mischa Fisher, Chief Economist at Zillow, explains:
“Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026.”
The bottom line? More people will finally be able to make a move this year. The market is opening a window of opportunity many haven’t had in a while—and why many homeowners are choosing to sell in 2026.
Bottom Line
Affordability won’t change overnight. But with several key trends working together, it should continue to improve steadily throughout 2026.
That means a market with more balance, more predictability, and more breathing room for both buyers and sellers.
