The real estate market in 2026 is shifting toward balance rather than extremes. The National Association of Realtors projects existing home sales will increase roughly 14%, with mortgage rates averaging in the low 6% range and modest, single-digit price appreciation.
Prices are projected to rise modestly around the low single digits, while incomes are expected to grow faster than both inflation and home prices — a meaningful shift from the pandemic-era frenzy.
Where the Opportunity Is
South Bay and Peninsula markets in particular offer buyers realistic pricing and room to negotiate, without the pressure of competitive bidding wars that defined recent years.
Tim's Advice
Rather than rushing to purchase, define your comfort level with a monthly payment first, weigh long-term lifestyle factors — commute, schools, remote work needs, family care — and make a decision aligned with where you want to be in 2031, not just this quarter.