What we're watching: Nationally, wages are expected to grow faster than home prices, which will rise another 1% in 2026, per a Redfin forecast.
Redfin projects 30-year fixed rates will average 6.3% this year, below 6.6% in 2025 but still well above pandemic-era levels.
First-time buyers will likely have limited options again this year, real estate experts tell Axios.
The bottom line: "The lack of affordability and the 'lock-in effect' on existing homeowners — are still going to be present in 2026, but the grip is kind of loosening," Realtor.com chief economist Danielle Hale tells Axios.