Home Prices Are Still Rising—Just at a Healthier Pace

For the past few years, the housing market has been filled with headlines predicting everything from soaring home prices to dramatic market corrections.

But according to a recent forecast from the National Association of Realtors' Chief Economist, Lawrence Yun, home prices are expected to continue rising through 2026—just at a much more sustainable pace than we've seen in recent years.

For buyers and sellers alike, that's an important distinction.

The market isn't experiencing the rapid appreciation of the pandemic housing boom, but it's also not showing signs of widespread price declines. Instead, we're seeing what many economists would consider a healthier, more balanced market.

Why Are Home Prices Still Increasing?

At first glance, it might seem surprising.

Mortgage rates remain elevated compared to the historic lows of 2020 and 2021, and affordability continues to be a challenge for many buyers.

So why aren't prices falling?

The answer largely comes down to supply and demand.

Despite an increase in inventory across many markets, the United States is still dealing with a long-term housing shortage. For years, home construction failed to keep pace with population growth and household formation.

As a result, even though more homes are becoming available, there still aren't enough homes to fully satisfy buyer demand in many areas.

The Market Has Shifted—But It Hasn't Stopped

One of the biggest misconceptions in today's market is that slower activity means a weak market.

In reality, many buyers have simply become more selective.

They're:

• Comparing more homes

• Negotiating more carefully

• Taking longer to make decisions

• Paying closer attention to affordability

That doesn't mean buyers have disappeared.

In fact, mortgage application activity has recently increased, suggesting many consumers are beginning to re-engage with the market after spending the past couple of years waiting on the sidelines.

Life events continue to drive housing decisions:

• Growing families

• Job relocations

• Downsizing

• Retirement

• Lifestyle changes

People still need homes regardless of where interest rates sit.

What This Means for Buyers

For buyers, a market with modest price appreciation can actually be beneficial.

Why?

Because it often creates a window of opportunity.

Today's buyers generally have:

• More inventory to choose from

• More negotiating power

• Greater ability to request concessions

• Less competition than during the pandemic frenzy

Many buyers are still waiting for lower rates, but if rates eventually decline significantly, more buyers may enter the market and increase competition.

That's why some buyers are choosing to purchase now and potentially refinance later if rates improve.

What This Means for Sellers

For sellers, the forecast is encouraging.

While homes may not receive dozens of offers within hours of hitting the market, well-priced homes in desirable locations are still attracting buyers.

The key difference is that pricing strategy matters more than it did a few years ago.

The days of simply listing a home and expecting bidding wars are largely behind us in most markets.

Today's successful sellers focus on:

• Accurate pricing

• Strong marketing

• Professional presentation

• Strategic timing

Homes that check those boxes continue to perform well.

What We're Seeing in the Charlotte Area

Here in the Charlotte region, we're experiencing many of the same trends playing out nationally.

Inventory has improved compared to recent years, giving buyers more choices.

At the same time, population growth and continued demand for housing continue to support home values throughout much of the area.

From Concord and Harrisburg to Huntersville, Mooresville, Kannapolis, and Charlotte, buyers are still actively searching for homes—just with a more measured approach than we saw during the peak of the market.

In fact, many agents are beginning to report increased buyer activity heading into the summer months as consumers adjust to current mortgage rates and recognize that waiting indefinitely may not be the best strategy.

The Return of a More Normal Market

Perhaps the biggest takeaway from the latest home price forecast is that the housing market appears to be returning to something closer to normal.

That's good news.

Healthy markets aren't defined by unsustainable price spikes or dramatic declines.

They're defined by steady growth, reasonable negotiation, and opportunities for both buyers and sellers to achieve their goals.

Final Thoughts

The housing market of 2026 looks very different from the housing market of 2021.

But different doesn't mean bad.

While home prices are expected to continue rising, the pace of appreciation is becoming more sustainable. Buyers have more options, sellers still have equity, and the market is finding a healthier balance.

For anyone considering a move, that's a reminder that real estate decisions should be based less on trying to predict the next headline and more on your personal goals, timeline, and financial situation.

Because even in a changing market, opportunity still exists for buyers and sellers who are prepared.