Home prices are expected to decline in 22 of the 100 largest U.S. metropolitan areas in 2026. CBS News highlighted a shift toward a balanced housing market after years of elevated prices and tight supply.
Mortgage rates remain above 6% and affordability challenges continue to weigh on buyers nationwide.
Affordability remains a challenge for many buyers, yet Jake Krimmel stated that moderating mortgage rates and growing inventory in certain markets could ease pressure in parts of the country next year.
Mortgage rates expected to ease slightly
Mortgage rates are averaging 6.3% in 2026, down from an estimated 6.6% average in 2025. Although rates remain well above pandemic-era lows, the modest decline is expected to encourage more buyers to return to the market.
2026 is described as potentially the most balanced housing market with neither buyers nor sellers holding a decisive advantage during negotiations.
Home sales projected to rise modestly
Existing-home sales are expected to rise next year with 4.07 million transactions in 2025 to an increased 4.13 million transactions. The growth can represent a shift after years of flat sales activity.
Where prices are expected to decline
The majority of the 22 metropolitan areas expected to see home price declines are in the Southeast and the West. Florida will experience price drops next year based on forecasts with Miami as the only exception.
Cape Coral and Fort Lauderdale’s prices are expected to decline about 10.2% with the North Port-Sarasota-Bradenton region following a predicted drop of 8.9%.
Markets settle down in the pandemic boom era setting
Markets expected to experience price decline were involved in rapid growth during the pandemic housing boom. Buyers have more options but demand has softened as migration patterns stabilize.
Most cities see price growth
Regardless of declines in some metros, home prices are expected to continue rising in the remaining largest U.S. cities. Price gains will be modest with a fair increase of 4% showing slower appreciation recently.
