Months of supply have climbed to around 4.4 months nationally as of April 2026, with active listings up significantly year-over-year. While still below the traditional 6-month balanced benchmark, this represents meaningful progress from the sub-3-month shortages of recent years.
For Buyers: More homes on the market means less competition. You can afford to be selective, request repairs after inspections, and negotiate on price or concessions (such as seller-paid closing costs or rate buydowns). Homes are sitting longer — a median of around 32 days on market in recent data — compared to the lightning-fast sales of the past.
For Sellers: Price aggressively and you risk prolonged days on market or price reductions. Work with your agent to price competitively based on current comps. Homes in good condition with desirable features (updated kitchens, energy efficiency, flexible spaces) are still moving faster.
National home prices are forecast to rise modestly in 2026, with projections between 0% and roughly 2.2%. This cooling appreciation, paired with wage growth outpacing home price gains in many areas, is helping restore some purchasing power.
For Buyers: This environment reduces the fear of overpaying at the peak. Focus on long-term affordability rather than trying to time the absolute bottom. In markets with rising supply, you may find opportunities to buy at or slightly below recent asking prices.
For Sellers: Equity remains strong for most homeowners who bought before or during the pandemic. However, expect smaller windfalls than in prior years. Highlight your home’s unique value and prepare thorough documentation (recent upgrades, maintenance records) to justify your price.
Rates hovering in the mid-6% range continue to influence decisions. While lower than 2023–2024 peaks, they’re high enough to keep some buyers on the sidelines and encourage sellers who locked in low rates to stay put (the “rate lock” effect).
Buyer Tips: Get pre-approved early to strengthen your offers. Explore options like builder incentives on new homes, adjustable-rate mortgages (if you plan to move or refinance), or temporary buydowns. Every 0.25% drop in rate can meaningfully improve monthly payments.
Seller Tips: Be prepared for buyer financing contingencies. In some cases, offering to contribute toward a rate buydown can make your home more attractive than competitors.
National trends provide the big picture, but local markets drive outcomes. Texas and certain Southeast markets often show stronger inventory growth and sales momentum. Urban vs. suburban, and new-build vs. resale dynamics also differ.
Both buyers and sellers should consult local data and work with experienced real estate agents and mortgage professionals who understand hyper-local conditions.
The Bottom Line: The 2026 market rewards preparation and realism. Buyers have more leverage and choices than in years past, while successful sellers adapt pricing and presentation to current realities. Whether you’re buying your first home, trading up, or listing after years of ownership, understanding this shifting balance is key to making confident decisions.
At Efficient Lending, Inc. (NMLS 1876539), we help borrowers navigate these changes with personalized mortgage solutions. Contact us for a pre-approval or rate consultation tailored to today’s market.
Message or call me anytime to continue the dialogue.
Mike Nelson, CEO - Efficient Lending, Inc 720.419.3016 | mike@efficientlending.net | @mike_lending NMLS: 1876539 | NMLS: 1314188
This post is for informational purposes. Market conditions change; consult professionals for your specific situation.
