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Housing Market Faces Adjustment in Spring 2026

  //house-home.news-articles.net/content/2026/02/0 .. sing-market-faces-adjustment-in-spring-2026.html
  Published in House and Home on Tuesday, February 3rd 2026 at 17:52 GMT by HousingWire
      Locales: Not Specified, Virginia, UNITED STATES

Tuesday, February 3rd, 2026 - The spring housing market is poised to be a period of significant adjustment, moving away from the frenzied activity of recent years toward a more balanced, though still challenging, landscape for both buyers and sellers. While a robust recovery isn't predicted, experts suggest a gradual stabilization is underway, influenced heavily by mortgage rates, a slowly improving inventory, and moderating price appreciation.

The Persistent Grip of Mortgage Rates

The primary hurdle for potential homebuyers continues to be mortgage rates. As of early February, rates are hovering around 7%, a figure that, while down from the peaks of late 2023, still significantly impacts affordability. This sustained high rate environment is forcing buyers to reassess their budgets and sellers to adjust their price expectations. The impact isn't uniform, however; the effect is most pronounced for first-time homebuyers and those in previously 'hot' markets.

"The housing market is in a period of transition," explains Lisa Marie Burks, Vice President of Mortgage Sales at Primary Residential Mortgage. "Mortgage rates are high, but inventory is slowly improving. This combination is creating a more balanced market, but it's also putting pressure on buyers and sellers."

Inventory: A Gradual Thaw

One of the most promising developments is the anticipated increase in housing inventory this spring. After years of severe shortages, more homes are beginning to hit the market, offering buyers greater choice. However, this increase is relative. Experts predict inventory will still remain below pre-pandemic levels, meaning competition, particularly for desirable properties, will persist. Regional variations will be stark, with some areas experiencing more significant inventory gains than others. Areas that saw massive influxes of residents during the pandemic may experience a slight correction as remote work trends settle.

Taylor Moore, Senior Economist at Redfin, notes, "We're seeing more homes listed for sale, which is a positive sign for buyers, but it's still a seller's market in many areas, so buyers need to be prepared to act quickly." The speed at which buyers need to move will largely depend on the local market conditions, emphasizing the importance of pre-approval and a well-defined search strategy.

Price Appreciation: Slowing Down, Not Stopping

The rapid home price appreciation witnessed during the pandemic is undeniably slowing. While a dramatic price crash is not expected, most analysts anticipate a moderation in price growth this spring. Some markets, particularly those that experienced the most significant price surges, may even see minor price corrections. This doesn't signal a decline in value overall, but rather a return to more sustainable growth rates. A key factor influencing pricing will be the duration of elevated mortgage rates; sustained high rates will continue to dampen demand and limit price increases.

Jeff Tucker, Senior Economist at Zillow, states, "Home prices are still high, but we're not seeing the same level of appreciation that we saw during the pandemic. In some markets, we may even see prices come down a bit, but overall, we expect prices to remain relatively stable." This stability, while welcome, means buyers won't necessarily find 'deals' but can expect a less frenzied bidding environment.

Sales Volume: A Modest Increase Expected

Sales volume is projected to increase from the lows of late 2024 and early 2025, but remain below historical averages. The combination of high rates and lingering affordability concerns will continue to restrain overall transaction numbers. This suggests a more 'normal' spring market, where sales occur at a more predictable pace, rather than the frantic pace seen in recent years.

Burks summarizes the outlook: "We're expecting to see more homes sold this spring, but it's unlikely to be a blockbuster season. Buyers and sellers need to have realistic expectations and be prepared for a more balanced market."

What This Means for Buyers and Sellers

For Buyers: Pre-approval for a mortgage is crucial. Be prepared to negotiate, but also act decisively when you find a property that meets your needs. Focus on long-term affordability rather than trying to time the market. Consider adjustable-rate mortgages (ARMs) as a possible way to lower initial payments, but understand the risks involved.

For Sellers: Price your home competitively, taking into account current market conditions and comparable sales. Prepare your home for sale to maximize its appeal. Be realistic about buyer expectations and be prepared to negotiate. Highlight features that add value, such as energy efficiency or recent renovations.

Ultimately, the 2026 spring housing market is shaping up to be a period of transition, requiring both buyers and sellers to adapt to a new normal. The key to success will be realistic expectations, careful planning, and a willingness to navigate a more balanced, yet still competitive, market.