2026 is a year where being well‑prepared matters more than being the fastest
The National Association of Realtors expects existing home sales to jump about 14% in 2026 as mortgage rates ease and people who’ve been “stuck” finally move. Prices are projected to rise modestly around the low single digits, while incomes are expected to grow faster than both inflation and home prices, which improves affordability for the first time in years. Mortgage rates are widely forecast to average in the low 6% range, and inventory is higher than a year ago, giving buyers more to choose from. Altogether, 2026 as a reset year: not a boom, not a bust, but a slow shift back toward a more balanced market.
Why that matters in the South Bay and Peninsula
Buyers are still careful about affordability, but fewer are walking away entirely. Instead, they’re adjusting expectations on size or location and staying in the hunt. In a high‑demand region like the South Bay and Peninsula, that means you’re more likely to see realistic pricing, some room to negotiate, and enough time to be thoughtful without expecting the easy deals of a weak market or the chaos of a bidding‑war era.
How a well‑prepared buyer uses this reset
In this environment, your edge isn’t speed; it’s clarity. You use the low‑6% rate world and modest price growth to define a monthly number that feels comfortable to you. You look 5–7 years out and consider things like your commute, schools, space to work from home, or aging family members, and buy for that life. So your job is to pick the move that will still feel smart when you look back at 2031, not to chase every headline.
This is general education, not financial, tax, or legal advice; your situation is your own. If you’re a well‑prepared home buyer and want a simple, numbers‑driven 2026 game plan, that’s the conversation we should have next.
https://finance.yahoo.com/news/2026-housing-market-reset-means-171418100.html
Image credit to: https://unsplash.com/@shawnpowar
