WASHINGTON (TNND) — Home prices in 2026 are expected to dip in 22 U.S. cities, along with mortgage rates, according to a Realtor.com analysis.
Jake Krimmel, a senior economist at Realtor.com, said that the real estate market will likely become more “buyer friendly” next year and the housing market will be more balanced.
“2026 is going to be a year where we think the market is going to steady,” Krimmel said, according to CBS News.
“It’s going to show a lot of signs of getting back on track to what we consider to be normal.”
The places where housing prices are expected to dip are in the southeast and the west. The cities include:
- Jacksonville, Florida
- Deltona-Daytona Beach-Ormond Beach, Florida
- Orlando, Florida
- Palm Bay-Melbourne-Titusville, Florida
- Lakeland-Winter Haven, Florida
- Clearwater, Florida
- North Point-Sarasota-Bradenton, Florida
- Cape Coral-Fort Myers, Florida
- Atlanta-Sandy Springs-Roswell, Georgia
- Raleigh, North Carolina
- Des Moines, Iowa
- Omaha-Council Bluffs, Nebraska, Iowa
- Colorado Springs, Colorado
- Denver-Aurora-Lakewood, Colorado
- Tucson, Arizona
- Phoenix-Mesa-Scottsdale, Arizona
- San Francisco-Oakland-Hayward, California
- Sacramento-Roseville-Arden-Arcade, California
- Stockton-Lodi, California
- Boise City, Idaho
- Spokane Valley, Washington
- Seattle-Tacoma-Bellevue, Washington
“These places, among others, saw a huge frenzy during the pandemic, so part of what we are projecting is that demand continuing to come back down to earth,” Krimmel said.
While prices are falling in some cities, places like Chicago had the biggest gain in annual home prices, according to a November Realtor.com report.
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“With mortgage rates stubbornly elevated and affordability at multi-decade lows, the market appears to be settling into a new equilibrium of minimal price growth—or, in some regions, outright decline,” head of fixed income tradables and commodities at S&P Dow Jones Indices, Nicholas Godec said.