Home prices are poised to dip in 22 U.S. cities next year, a new analysis says. See where.

The real estate market in the United States is projected to shift towards a more “buyer-friendly” direction in 2026, according to a recent analysis from Realtor.com. This change is expected to bring about the most balanced housing market since the onset of the pandemic, giving neither sellers nor buyers a significant advantage in negotiations.

One of the key factors driving this shift is the anticipated decrease in mortgage rates, which are forecasted to drop to an average of 6.3% next year. This slight reduction from the 6.6% average rate in 2025, combined with strong wage growth, is expected to encourage more buyers to enter the market. Jake Krimmel, a senior economist at Realtor.com, expressed optimism about the market stability in 2026, stating that the year will show signs of returning to a more normal state.

The analysis also predicts a slight increase in existing-home sales, with a projected 4.13 million properties sold in 2026. While this represents a modest uptick from the previous year’s 4.07 million home sales, it marks a notable change considering the stagnant sales trends observed throughout 2025.

In terms of price trends, the analysis identifies 22 cities where home prices are expected to decrease in 2026, primarily in the Southeast and West regions of the country. For example, several major cities in Florida are projected to experience declines in home prices, with the Cape Coral-Fort Lauderdale metropolitan area expected to see the largest drop at 10.2%. These price declines are attributed to an increase in inventory, providing more options for buyers, as well as a decrease in demand following the peak of the COVID-era real estate boom.

Conversely, prices are forecasted to rise in the remaining 78 largest U.S. cities, albeit with modest increases averaging around 4%. Realtor.com based its projections on various factors including inventory levels, new construction, price growth, wage and job growth, and unemployment rates across the 100 cities analyzed.

Overall, the outlook for the U.S. housing market in 2026 appears to be more balanced and stable, with opportunities for both buyers and sellers to navigate the market with relative ease. As the year progresses, it will be interesting to see how these projections unfold and shape the dynamics of the real estate landscape.