Is the Housing Market Turning? The Data Says Yes!

Why Now Could Be a Smart Time to Buy a Home

The U.S. housing market is showing signs of balance after years of tight conditions — and for prospective buyers, that could mean opportunity instead of frustration. According to the latest HousingWire data, homebuying power is improving as price growth cools and available inventory expands. Median list prices have eased, more homes are on the market, and properties are sitting longer — all of which give buyers greater leverage and fewer bidding wars compared with recent years. (HousingWire)

Affordability Isn’t Perfect — But It’s Better Than a Year Ago

Home prices may still be high compared with longer-term history, but the pace of increase has stalled, helping affordability in a meaningful way. Rising inventory — nearly 10% more homes listed recently —means buyers have more choices and less urgency to outbid competing offers. (HousingWire)

Other industry forecasts suggest the market is stabilizing in early 2026, with modest increases in sales activity and more balanced supply dynamics. That’s a shift from the record-low sales and extreme scarcity that marked much of the past few years. (Facebook)

Mortgage Rate Update: Still Elevated — But Trending Healthier

Mortgage rates have been a major headwind for buyers since the Federal Reserve’s tightening cycle drove average rates sharply higher. However, recent data shows some easing from peak levels:

• The 30-year fixed mortgage rate has hovered around the low-6% range, near the lowest point in over three years. (Money)

• Year-over-year comparisons show rates down significantly from near 7% at this time last year. (freddiemac.com)

• A modest drop of even a fraction of a point in mortgage interest can lower monthly payments and expand a buyer’s purchasing power, adding thousands of dollars in savings over the life of a loan. (National Association of REALTORS®)

While rates aren’t returning to the ultra-low levels of the pandemic era, the current trend toward lower rates is a welcome relief for many homebuyers — and experts forecast they could remain stable or gradually decline through 2026. (Bankrate)

More Buyers Entering the Market

Homebuyer demand is strengthening, with early 2026 data showing increased purchase applications and renewed interest from buyers who had been sidelined last year. Combined with more homes for sale and less frenetic competition, this creates a more approachable market for many. (HousingWire)

Bottom Line: Opportunity Is Knocking

So, is now a good time to buy a home? For motivated buyers who’ve been waiting on the sidelines, the balance of cooler price growth, expanding inventory, and mortgage rates near recent lows suggests the answer could be yes. Conditions aren’t perfect — markets vary locally, and affordability challenges remain for some buyers — but compared with recent years of intense competition and scarce listings, the tides are shifting.

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