22 of the largest U.S. cities are expecting a price drop in 2026. Next year is expected to become the most balanced housing market since the pandemic, with mortgage rates easing as well.
Jake Krimmel, senior economist at Realtor.com, said, “2026 is going to be a year where we think the market is going to steady. It’s going to show a lot of signs of getting back on track to what we consider to be normal.”
A higher likelihood of buyers entering the market comes with lowered borrowing costs and strong wage growth within the upcoming year. Mortgage rates are expected to dip to an average of 6.3% next year, a slight drop from 2025’s 6.6% average rate.
That will help push up existing-home sales, which are projected to increase less than 2% to 4.13 million properties in 2026, according to Realtor.com’s report. Transactions have been consistently low since 2025; the projection in 2026 indicates a slight increase from this year’s projected 4.07 million home sales.
Cities overseeing a price drop
Seven of the eight largest cities in Florida are experiencing a drop in home prices next year, with the exception of Miami. The 22 cities are located in the Southeast and the West.
The Cape Coral-Fort Lauderdale metropolitan area is expected to see the nation’s largest price decline next year, with homes dropping by 10.2%, the analysis says. Following closely behind with an 8.9% decline is the North-Port-Sarasota-Bradenton, Florida region.
Predictions for other US cities
Cities overseeing a price drop are obtaining more inventory and attracting buyers with a higher variety of items to choose from. Inventory, new construction, price growth, wage and job growth, and unemployment across the 100 cities were collected to assume the following predictions by Realtor.com.
Prices in the other 78 largest US cities are speculated to see a slight price increase, with the median gain of 4%.
