The year 2025 marked a turning point in the real estate market. After regaining its balance following the pandemic, market activity slowed toward the end of the year, and buyers became more cautious—reassessing their positions and waiting for the next phase after the holiday season.
In 2026, experts expect home prices to stabilize without any major crash, with a modest increase of around 1–2%. The impact will be more localized than reflected in national averages, as neighborhoods will vary between slight declines and relative stability.
As for mortgage interest rates, they are expected to edge down slightly, with buyers increasingly accepting rates in the 5–6% range as the new reality. This adjustment is restoring confidence in the market and helping to stimulate sales activity.
With market sluggishness continuing, some sellers are choosing to rent out their properties instead of selling in order to preserve their assets. Developers are also temporarily entering the rental market until overall conditions improve.
Artificial intelligence is significantly reshaping how real estate agents operate and how home searches are conducted. It provides tools to analyze options and risks, boosts efficiency, and drives unprecedented development in the real estate sector.
While it will not replace the human element, AI serves as a powerful means to enhance productivity and deliver more accurate pricing insights, helping to reduce overvaluation in property pricing.
