2026 Housing Market Outlook: What Buyers & Sellers Should Know

The housing market is heading into a new chapter in 2026. After several years of tight inventory, rapid price changes, and rate volatility, conditions are beginning to level out. The result is a market that feels more balanced, more predictable, and more navigable for buyers and sellers alike.

For a deeper dive into the national data and forecasts, you can explore the full Compass 2026 Market Outlook flipbook here:

👉 [View the Compass Market Outlook]

Below is a streamlined overview of the key takeaways, along with their specific implications for the Denver metro area.

Key National Trends for 2026

➤ More Homes on the Market

Inventory is expected to continue building in 2026, giving buyers more choice and easing the intense competition of recent years. While supply may still feel tight in some markets, the overall direction is toward more balance.

➤ Slower, More Stable Price Growth

Instead of sharp increases, home prices are projected to grow modestly, around half a percent nationally. This shift favors long-term planning and reduces the pressure of timing the market perfectly.

➤ Mortgage Rates Finding Their Range

Rates are expected to stabilize in the mid-6 percent range. While not historically low, this consistency helps buyers plan with more confidence and reduces sudden affordability swings.

➤ Sales Activity Picks Up

With improving inventory and steadier rates, existing-home sales are projected to increase in 2026 as more buyers and sellers re-enter the market.

➤ Affordability Improves Gradually

Affordability gains are expected to come less from falling prices and more from incomes rising faster than home values, helping ease monthly payment pressure over time.

What This Looks Like in the Denver Area

Denver is already showing signs of these national trends at work.

• Inventory has been growing, giving buyers more options across neighborhoods and price points.

• Price growth has cooled, shifting toward steady, sustainable appreciation rather than rapid spikes.

• Buyer behavior is more intentional, with fewer bidding wars and more emphasis on value, location, and long-term fit.

• Neighborhood performance varies, making local expertise especially important. Some areas remain highly competitive, while others are offering new opportunities.

What It Means for Buyers and Sellers

➤ Buyers:
You may find more breathing room in your search, more homes to compare, and fewer pressure-filled decisions. Preparation and local strategy still matter, but the pace is more manageable.

➤ Sellers:
Homes that are priced well and presented thoughtfully continue to attract attention. The market rewards realistic pricing and strong marketing rather than testing the top of the market.

Thinking About Making a Move in 2026?

Whether you’re buying, selling, or just starting to plan ahead, understanding how these trends apply to your specific situation makes all the difference. Denver’s market is highly localized, and strategy can vary widely by neighborhood, price point, and timing.

If you’re thinking about making a move in 2026, reach out to The Denver Group. We’re happy to talk through your goals, evaluate your options, and help you decide what makes the most sense for you.