The Realtor.com 2026 Forecast Midyear Update found home price growth is only 1.2 percent, effectively a decline in real terms.
Even with modest price growth, the real estate firm had good news on housing prices as it sees things picking up in the second half of the year, given the resilience of the American economy.
“Against a backdrop of both familiar and new challenges, the economy has proved resilient. As a result, the first half of 2026 delivered stability more than momentum in the housing market,” said Danielle Hale, chief economist at Realtor.com. “The housing market is inching forward as sellers reset expectations, price growth cools and buyers gain more negotiating power. Looking ahead, we expect momentum to build through the second half of the year as more sidelined buyers and sellers find terms that work for both sides.”
Realtor.com also trimmed its 2026 existing-home sales forecast to 4.10 million, down from the 4.13 million figure projected in December. That forecast still shows a slight 1.0 percent growth in the total number of home sales, it said, largely expecting all of that growth to happen in the back half of the year.
On the rental side of the market, Realtor.com is forecasting a 1.2 percent decline in 2026. Vacancy rates, 7.3 percent in the first quarter, are expected to end the year roughly in line with the 7.2 percent long-term average from 2013-2019, it said.
For the overall housing market, Realtor.com said the realities of the marketplace are driving sales. “Buyers and sellers have shown a lot of staying power this year,” said Hale. “This is a market where people are adjusting and showing up rather than giving up. Sellers are meeting the market with more realistic asking prices, which is helping deals get done.”
