Housing Market Predictions for 2026

Looking ahead to 2026, the housing market is expected to see mortgage rates averaging 5.6% and home prices rising at a modest pace of 1.7%. Inventory will improve, though it’s still anticipated to remain below the levels we saw before 2020—resulting in a balanced, neutral market. While foreclosures are predicted to increase, they’ll stay at relatively low levels. As someone who guides clients through the Salem, Aumsville, and Willamette Valley real estate landscape, I always emphasize the importance of being financially prepared before making a move. These forecasts highlight the value of thoughtful planning and clear goals as we look to the future.