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Is an Adjustable-Rate Mortgage Right for You? A Homebuyer’s Guide
If you’ve been shopping for a home lately, you’ve likely felt the pressure of today’s affordability challenges. Higher home prices and mortgage rates have made it harder for many buyers to stay within budget. That’s one reason adjustable-rate mortgages, or ARMs, are getting more attention again.
For some homebuyers, an ARM can offer welcome savings upfront. But before you go that route, it’s important to understand how these loans work, why they appeal to certain buyers, and what the long-term risks might be.
What Is an Adjustable-Rate Mortgage?
An adjustable-rate mortgage is a home loan that starts with a fixed interest rate for a set number of years. After that initial period ends, the rate can adjust at scheduled intervals based on market conditions.
As Business Insider explains:
“With a fixed-rate mortgage, your interest rate remains the same for the entire time you have the loan. This keeps your monthly payment the same for years . . . adjustable-rate mortgages work differently. You’ll start off with the same rate for a few years, but after that, your rate can change periodically. This means that if average rates have gone up, your mortgage payment will increase. If they’ve gone down, your payment will decrease.”
That’s the biggest difference between a fixed-rate mortgage and an ARM. A fixed-rate loan offers predictability, while an ARM may give you a lower payment at first but less certainty later.
It’s true that costs like property taxes and homeowners insurance can still change with a fixed-rate mortgage. But the principal and interest portion of the payment generally stays steady. With an ARM, your monthly payment can rise or fall once the fixed period ends.
Why More Home Buyers Are Considering ARMs
The main reason buyers look at adjustable-rate mortgages is simple: lower initial costs.
Business Insider puts it this way:
“Because ARM rates are typically lower than fixed mortgage rates, they can help buyers find affordability when rates are high. With a lower ARM rate, you can get a smaller monthly payment or afford more house than you could with a fixed-rate loan.”
That upfront savings can matter, especially in a market where every dollar counts. Recent reporting from Mortgage News Daily and The Wall Street Journal show that ARM rates have been coming in lower than 30-year fixed mortgage rates.
For many buyers, even modest monthly savings can make a difference. For example, Redfin found that a typical buyer could save about $150 per month by choosing an ARM instead of a 30-year fixed mortgage. Savings like that can help some buyers qualify for a home sooner or make their monthly budget more manageable.
Why Adjustable-Rate Mortgages Are Making a Comeback
More homebuyers are deciding that a lower payment today is worth considering, even if it means taking on more uncertainty later.
Recent reports from the Mortgage Bankers Association (MBA) show that the share of buyers choosing ARMs has increased in recent years. That doesn’t mean ARMs are becoming the right fit for everyone. But, it shows that some buyers are using them as a strategy to deal with affordability challenges in the current market.
For anyone who remembers the 2008 housing crash, this trend may sound concerning at first. But today’s lending environment is very different.
In the past, some borrowers were approved for loans they couldn’t realistically afford once the interest rate adjusted. Today, lending standards are tighter, and lenders generally evaluate whether borrowers could still manage the payment if rates rise. So while ARMs are becoming more common again, that alone doesn’t point to another housing crisis.
The Pros and Risks of an ARM
An adjustable-rate mortgage can make sense in the right situation, but it depends on your financial plan and your comfort with risk.
An ARM may be worth considering if:
- You expect to move before the rate adjusts.
- You believe your income will increase over time.
- You need a lower initial payment to make homeownership possible now.
Still, there are trade-offs to consider.
Once the fixed-rate period ends, your interest rate can change, and your monthly payment could increase significantly depending on where mortgage rates are at that point. There’s also no guarantee rates will fall in the future, which means refinancing later may not be as easy or as beneficial as some buyers hope.
That’s why it’s important to think beyond the introductory rate. Make sure you understand how long the fixed period lasts, how often the rate can adjust, and how much your payment could increase over time. Most importantly, talk through your options with a trusted lender and financial advisor before making a decision.
Bottom Line: Is an ARM Right for You?
Adjustable-rate mortgages are regaining popularity because they can make buying a home more affordable in the short term. For some buyers, that lower upfront payment can be a helpful tool. But an ARM isn’t necessarily the right move for everyone.
The best decision comes down to understanding how the loan works, weighing the risks, and making sure it fits your long-term goals.
If you’re considering an adjustable-rate mortgage yourself but are still on the fence, reach out to us today. We can connect you with a qualified lender in your area who explore your options with you.
The Best Time To List Your House Is Almost Here
Spring is usually one of the strongest seasons to sell a home, but according to research from Realtor.com, one specific week tends to stand out year after year. And it’s almost here.
Based on historical housing market trends, the best week to list your house this year is April 12–18.
Here’s why that window can be especially favorable for sellers.
Buyers Are More Active
Realtor.com reports that homes listed during this week typically receive 16.7% more views than the average week. In a market where buyers have more choices, extra visibility can make a real difference.
More attention early on can help generate stronger interest, more showings, and a better overall start to your sale.
Homes Sell Faster
More buyer activity can also lead to a quicker sale. Realtor.com found that homes listed during this week spend 17% less time on the market than usual.
That matters, especially in a market where some homes are taking longer to sell than they did a year ago. A faster sale can mean less stress, fewer disruptions, and more momentum from the start.
Sellers May Get a Better Price
As inventory grows, buyers often feel more comfortable asking for repairs, concessions, or price reductions. But during this early spring window, Realtor.com says about 18.9% fewer homes need a price cut.
That gives sellers a stronger chance of listing confidently and holding closer to their asking price.
More Money in Your Pocket
According to the same study, a well-prepared home listed during this week can sell for about $5,300 more than the average week and about $26,000 more than homes listed at the beginning of the year.
For sellers, that’s a meaningful difference.
More views, less time on the market, and a better shot at top dollar all make this one of the most appealing times to list.
What You Should Do Now To Prepare
If you’re thinking about selling and want to take advantage of this timing, the next step is simple: connect with a local real estate agent.
A trusted local agent can help you decide how to prepare based on what is happening in your market. Real estate trends can vary by city, neighborhood, and even price point, so local insight matters.
Your agent can help you figure out:
- What updates are worth making before you list
- Which repairs should come first
- What buyers in your area care about most
- Which small improvements can have the biggest impact
For some sellers, getting ready may only take a couple of weekends. Fresh paint, basic landscaping, or a deep clean can go a long way.
For others, taking a few extra weeks to make light updates may be the smarter move. And that’s completely fine. While mid-April may offer an advantage, it is not the only good time to sell.
Spring Still Offers a Strong Opportunity
Zillow says May is also one of the best times to list a home. That means sellers still have a strong window of opportunity throughout the spring season.
So while April 12–18 may be a standout week, it’s not your only shot at a successful sale.
Conclusion
Listing your house in mid-April could help you attract more buyers, sell faster, and maximize your sale price. But the bigger opportunity is the spring market as a whole.
The real question is: what do you need to do now to get your home ready to list?
For anyone planning a spring move, now is the time to start preparing. The sooner you connect with a local agent, the sooner you can make a plan that fits your goals and your timeline.
Mortgage Rate Volatility: What You Can Control as a Buyer
Mortgage rates have been moving up and down lately, and that can make buying a home feel harder to plan for. When rates are unpredictable, many buyers wonder whether they should wait, move forward, or try to time the market.
Here’s the good news: while you can’t control where mortgage rates go next, you can control several factors that may help you secure a better rate. The first step is understanding what’s driving today’s market and knowing where to focus your time and effort.
Mortgage Rate Volatility Is Normal
Recent data from Freddie Mac show that mortgage rates have been fluctuating. After trending downward for well over a year, rates ticked up again this month.
That kind of movement can feel frustrating, especially when you’re doing your best to budget for a home purchase. But occasional increases and decreases are a normal part of the mortgage market. Even over the past year, there have been periods when rates jumped before settling back down.
This is another one of those moments, and it helps to keep that in mind.
When there’s economic uncertainty or major global events unfolding, mortgage rates often respond quickly. As Investopedia explains:
“Mortgage rates don’t move in isolation. When global events inject uncertainty into financial markets . . . that can ripple through to borrowing . . . mortgage costs can respond quickly to geopolitical developments. As long as uncertainty remains elevated, rate swings may continue.”
That’s exactly why trying to predict the perfect time to buy usually doesn’t pay off. Rates can change fast, and waiting for the market to cooperate may not give you the outcome you want.
Focus on What You Can Control
You may not be able to influence the market, but you can take steps put yourself in a better position as a buyer. If your goal is to get the best mortgage rate possible, these are the areas that matter most.
Your Credit Score
Your credit score is one of the biggest factors that affects the rate you qualify for. In many cases, even a modest improvement in your score can lead to better loan terms and a lower monthly payment.
As Bankrate explains:
“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”
That’s why it’s worth taking steps to strengthen your credit before applying for a mortgage. Paying bills on time, reducing outstanding debt, and avoiding new credit inquiries can all help. If you’re not sure where your score stands or what improvements would make the biggest difference, a trusted loan officer can help you create a plan.
Your Loan Type
The type of mortgage you choose also affects your rate. There are many different types of loans, and each comes with different eligibility requirements, benefits, and pricing.
The Consumer Financial Protection Bureau (CFPB) explains:
“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”
This is why exploring your mortgage options is so important. A conventional loan may be the right fit for one buyer, while an FHA, USDA, or VA loan may offer better advantages for another. Comparing programs and speaking with more than one lender can help you understand which path makes the most sense for your financial situation.
Your Loan Term
The length of your loan term matters, too. Most lenders offer 15-year, 20-year, and 30-year mortgage options, and the term you choose can affect both your interest rate and your monthly payment.
Freddie Mac explains it this way:
“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”
A shorter loan term may come with a lower interest rate, but the monthly payment is often higher. A longer term may give you more flexibility in your monthly budget, even if you pay more interest over time. The right choice depends on your goals, your budget, and how long you plan to stay in the home.
Conclusion
If you’re in the market for a home right now, the best strategy is not to focus on trying to predict where mortgage rates will go next.
Instead, focus on what you can control. Improve your credit score, explore different loan types, and choose a loan term that fits your needs. Most importantly, work with a trusted lender who can guide you through your options. If you need help connecting with trustworthy lender, reach out to us today.
Mortgage rates may be out of your hands, but the steps you take to prepare are not. And when you focus on what you can change, you give yourself a much better chance to move forward with confidence.
Home Affordability Improved in All 50 States: What Buyers Need To Know
For the past few years, affordability has been one of the biggest reasons buyers have put their home search on hold. Maybe you did the same.
At some point, you may have looked at the numbers, saw what a monthly mortgage payment would be, and decided to wait for the market to become more manageable. But there’s encouraging news you may have missed.
Over the past year, housing affordability has improved in all 50 states. Yes, every single one.
That’s according to new research from First American. And while buying a home is still more expensive than what’s historically normal, the affordability pressure many buyers have felt over the last several years is finally starting to ease.
Some Markets Are Seeing Bigger Improvements
One of the most important things to understand is this isn’t limited to one part of the country or just a few select markets. Affordability is improving almost all over the country.
Of course, real estate is always local. Conditions can vary a lot from one state, city, or neighborhood to the next. But overall, the market is becoming more favorable for buyers. In fact, affordability has improved in 48 of the top 50 metros over the past year.
That same research also highlights the top 10 cities seeing the biggest gains in affordability:
Top 10 Cities Where Home Affordability Has Improved the Most
- Miami, FL
- Atlanta, GA
- Seattle, WA
- Denver, CO
- Pittsburgh, PA
- Tampa, FL
- Salt Lake City, UT
- Riverside, CA
- Raleigh, NC
- Las Vegas, NV
If you’re wondering why some markets are improving faster than others, a lot of it comes down to home inventory.
When there are more homes for sale, the market becomes more balanced. This can help improve affordability by giving buyers more negotiating power. With more options available, buyers may have a better chance of finding a home that fits their budget, and they may also be in a stronger position to ask for seller concessions, price reductions, or closing cost assistance.
That can make a bigger difference than many people expect.
What Does This Mean for Buyers?
Home affordability challenges haven’t disappeared altogether, obviously. Buying a home is still a major financial decision, and housing prices remain high in many markets. But the overall nationwide trend is moving in a direction that gives buyers more opportunity than they’ve had in recent years.
As Chen Zhao, Head of Economic Research at Redfin, explains:
“The housing affordability crisis is showing signs of easing. . . opening the door for more Americans to make the jump to homeownership.”
Conclusion
If you’ve been waiting on the sidelines for affordability to improve, this may be the sign you’ve been hoping for. To find out what’s happening in your local market and how much buying power you may have today, connect with a trusted local real estate agent.
Why Spring Gives Home Sellers an Advantage
Homeowners planning to sell usually want the same three things: more buyer interest, stronger offers, and a faster sale. And it’s no secret that spring is the season that most often delivers on all three.
If selling your home has been on your mind this year, this may be the right time to make your move. Spring consistently brings more energy to the housing market, and that momentum can work in your favor. Here’s why this season is often such a strong opportunity for sellers.
1. More Buyers Are Actively Looking
Spring is traditionally one of the busiest times of year for the housing market. Historically, buyer activity tends to rise as the season begins, and data from ShowingTime has consistently shown that buyer traffic peaks during the spring months each year (see graph below).
This year, there’s another factor helping sellers: mortgage rates are hovering near three-year lows. That combination of seasonal demand and improved affordability could be the spark that gets buyers back into the market.
More buyers and better affordability often mean more attention on your home.
That doesn’t mean the market is going back to the kind of buying craze we saw during the pandemic. But it does suggest that more buyers may be ready to make a move. As Redfin says:
“Homebuying demand is improving . . . and mortgage-purchase applications are sitting near their highest level in three years. . .”
For sellers, that creates more opportunity. Listing your house while buyer demand is picking up can help you take full advantage of the seasonal uptick in activity.
2. You Could Receive More Offers
When more buyers are searching, sellers often enjoy increased competition, and in many cases, that leads to more offers.
Data from the National Association of Realtors (NAR) over the past three years shows a clear pattern: sellers tend to receive more offers during the spring months than at other times of the year (see graph below).
That doesn’t mean every home will spark a bidding war; the market is more balanced now than it was in 2020 and 2021. Even so, seasonality still matters, and spring can offer a more favorable market environment for sellers.
As Realtor.com explains:
“Spring typically brings out more buyers who are ready to make a move before summer. Listings see more views, showings, and offers during this season.”
More views and more showings can lead to stronger offer activity, which may put you in a better position when it comes time to negotiate.
3. Homes Often Sell Faster in Spring
Another trend that shows up year after year is speed. Homes generally sell faster in the spring.
According to research from Realtor.com, homes sell about 20 days faster in spring than they do in winter on average (see graph below). That’s nearly three weeks less time on the market.
For many sellers, that matters just as much as price. A faster sale can reduce the stress of the process, limit disruptions to your daily life, and help you move on to your next home or next chapter sooner.
And since homes have been taking a little longer to sell in recent months, listing during one of the most active parts of the year may help improve your timeline. If your goal is to sell efficiently, the spring market can give you a critical edge.
Why Timing Still Matters
Spring doesn’t automatically guarantee a fast or profitable sale. Pricing, presentation, marketing, and local market conditions still play a major role. But this season does tend to create stronger momentum than other times of year.
When you combine that momentum with more active buyers and better affordability, the spring market can offer a real advantage.
If you need more space, want to downsize, or are simply ready for a change, this spring season may be your best chance to make a decisive move.
Conclusion
Spring can give sellers something incredibly valuable: opportunity.
More buyers. More activity. More potential offers. And often, a faster sale.
If you’re already thinking about selling this year, it makes sense to consider listing when market conditions are typically most favorable. Talk with a local real estate agent about what this spring could mean for your home, your timing, and your next move.
Are Home Prices Dropping? What the Latest Data Show
You’ve probably seen headlines or social posts claiming that home prices are falling. It’s an attention-grabbing message, and it naturally leads to two big questions:
- Is this the start of a crash?
- What does it mean for my home’s value?
Here’s the reality: a few markets are seeing small, normal pullbacks, but this is not a nationwide crash. In most areas, prices are still rising or holding steady, just not at the breakneck pace we saw a few years ago.
Home Prices Are Still Rising Nationally
A lot of online chatter focuses on isolated price drops without mentioning the broader data. Nationally, prices have continued to trend upward, but at a slower rate than usual.
According to a new report from the National Association of Realtors (NAR):
“Home prices continued to rise in the fourth quarter of 2025. National median prices rose 1.2% year over year to $414,900.”
That’s modest growth compared to the peak “boom” years, but it’s still growth. And regionally, the story varies.
At a glance, the numbers show:
- Northeast, Midwest, and South: prices generally up or steady.
- West: more mixed, with some markets seeing mild price declines.
In other words, the market is cooling and normalizing, not crashing.
Why You’re Hearing So Much About Price Drops
Price declines make for clickable headlines. But a few factors can make a local shift look like a national trend:
- High-profile metros go viral. A dip in one major market can dominate the conversation.
- Seasonality is real. Some months are softer than others, even in healthy markets.
- Affordability has cooled demand. Higher payments can reduce competition and push prices to level off.
Those are signs of a market adjusting, not collapsing.
Some Markets Have Softened, But Context Matters
In the places where prices have dipped, it helps to look at the big picture. Many of those markets saw especially strong appreciation over the last several years. When you compare today’s values to where they were five years ago, homeowners in many “down” markets are still up significantly overall.
According to data from ResiClub and Zillow, price dips in the short-term aren’t always the cause for concern they seem to be. The long-term trends tell a clearer story, and they remain strong for many homeowners.
The key point: a pullback after rapid growth is not the same thing as a crash. It’s often a correction toward something more sustainable.
What This Means for Homeowners and Buyers
If you’re a homeowner:
In most markets, you’re not watching value evaporate overnight. Instead:
- You likely still have meaningful equity compared to pre-2020 values.
- Pricing strategy matters more now that buyers aren’t automatically overbidding.
- The best indicator is recent comparable sales in your neighborhood.
If you’re a buyer:
A cooler market can create more breathing room:
- You may see more negotiability in certain areas.
- You may have more time to decide than during the peak frenzy.
- But waiting for a big “crash” could mean missing the right home if your local market is stable.
Real estate is local. The best move depends on your budget, timeline, and the neighborhood you want.
How to Know What’s Happening Where You Live
National headlines can’t tell you what’s happening on your street. To get a clear picture, look at:
- Recent sold prices (comps) for similar homes.
- Days on market and list-to-sale price ratios.
- Inventory levels and new listings.
- Price reductions on comparable listings.
A local real estate agent can help make sense of your market’s unique trends. That way, you know you’re relying on sound information for any decision you make.
Conclusion
Home prices are rising or holding steady in most parts of the country, and a handful of small declines does not equal a nationwide downturn. If you want to know what your home is worth today, review your local numbers with a trusted real estate professional.
Renting vs. Buying: What The Numbers Say
Renting often feels like the simpler move these days. There’s no down payment to save up for, no surprise repair bills, and no long-term commitment if life changes.
But then your lease renews and the rent jumps. Then it happens again. Eventually, what felt flexible suddenly starts to feel expensive, especially when you realize every monthly payment is going to your landlord, not building wealth for you.
A big reason this stings is because there’s been so much talk about how homeownership is “out of reach.” And in some markets, it absolutely can be. But here’s the part that doesn’t get said enough: when you compare the numbers side by side, buying can cost less per month than renting in more places than most people expect.
Buying Can Be More Affordable Than Renting in Many Areas
In a lot of markets today, owning a home may actually have a lower monthly cost than renting a 3-bedroom home. New data from ATTOM suggest this is true in nearly 58% of counties across the United States.
And this comparison isn’t just a mortgage payment versus rent. It also takes into account common ownership costs like insurance and regular maintenance.
So if you’ve assumed buying automatically means a higher monthly bill, it may be worth a second look. Recent changes in home price growth, housing inventory, and mortgage rates have been shaking certain markets. Depending on where you live, buying might be finally in your favor.
Affordability Depends on Where You Live
Even though the national picture has shifted, it doesn’t mean buying is cheaper everywhere, or that every renter will have the same experience.
That “nearly 58%” figure looks very different depending on the region. The biggest improvement is happening in the Midwest and South, while the West can still feel tight for many households.
The key takeaway is simple: real estate is local. A national headline can’t tell you what the rent-versus-buy equation looks like in your zip code. The only way to know is to run the numbers based on your local prices, rents, taxes, and insurance.
What’s Still Holding Buyers Back?
If you’re thinking, “Even if the monthly payment works, I can’t afford the upfront costs,” you’re not alone.
For many renters, the biggest hurdle isn’t the monthly payment. It’s the down payment (and often closing costs) that feels like a wall.
Here’s the good news: there are thousands of down payment assistance programs across the country, and many buyers qualify without realizing it. The average benefit is around $18,000, which can help cover part of your down payment or closing costs.
Support like this can make buying feel a lot more realistic, because it reduces how much cash you need to get in the door.
How to Figure Out What’s Right for You
If you want clarity instead of guesswork, focus on a simple comparison:
- Your current rent (and how often it’s rising).
- An estimated monthly ownership cost (mortgage, taxes, insurance, HOA if applicable).
- A realistic maintenance cushion.
- Upfront costs (and any down payment assistance you may qualify for).
When you combine potential assistance with monthly costs that may be closer than expected, the gap between renting and buying can shrink quickly, or even flip in favor of buying.
Conclusion
The bottom line isn’t that everyone should buy a home as soon as possible.
The idea is that renting isn’t always the cheaper option people assume it is, and buying may be more realistic than it feels once you look at the full picture.
If you’re renting and feel stuck saying “someday”, consider a quick conversation with a local real estate agent or lender. Not a commitment, just a way to see what’s possible and whether it makes sense for you.
Why Did Home Sales Fall in January?
If you saw headlines saying home sales fell sharply in January, it’s understandable to feel uneasy, especially if you’re thinking about selling. But one month of data rarely tells the whole story.
Yes, January home sales declined. In most years, that’s normal. And this particular drop has a lot more to do with seasonality and winter weather than a sudden collapse in buyer demand.
What’s Really Behind the “Home Sales Fell” Headlines
Recent reports from the National Association of Realtors (NAR) show existing home sales dropped about 8.4% month over month. That’s the number making the rounds, and it’s an accurate one.
The key is understanding why it happened:
- January is historically slow for real estate in general
- Fewer people list and tour during the coldest weeks of the year
- Holidays, travel, and weather disruptions often push closings into the next month
So while the percentage sounds dramatic, it doesn’t necessarily signal a weakening market.
Why January Is Often a Slower Month for Home Sales
Seasonality is a consistent pattern in U.S. real estate. In many markets:
- Winter brings fewer new listings
- Buyers move more cautiously due to schedules and weather
- Fewer transactions close, even when demand is still there
Over the past several years, sales have commonly dipped in January and then picked up again in February as the market begins ramping up for spring. In other words, a January slowdown is often a pause, not a trend. You can see this in the graph below, particularly in the green bars showing February sales rebounds:
Home sales often slow in January and rebound quickly in February.
The Bigger Drop This Year: Weather, Not Demand
This year’s decline was steeper than the usual January dip, even with lower mortgage rates. But the likely explanation is simple: disruptive winter weather.
As Realtor.com explains:
“Winter storm Fern, which dumped snow and ice across large swaths of the country, likely disrupted some closings, weighing on the data and making it difficult to pick out the housing market momentum trend from the weather noise.”
According to the original post, 40 states experienced widespread winter weather. In real estate, that matters because bad weather can delay the final steps needed to close, including:
- Inspections
- Appraisals
- Final walk-throughs
- Lender or title timelines
Why “Fewer Sales” Can Really Mean “Later Closings”
One important detail most headlines skip: existing home sales track closings, not contracts.
That means a storm doesn’t have to “kill” a deal to show up in the data. If weather slows the process, many transactions simply move from January into February (or later).
So January’s missing sales are more likely postponed, not lost.
Will Home Sales Pick Back Up?
Despite a slower January, the data still point toward the market gaining traction as spring approaches.
Here are two encouraging points to consider:
- Affordability has improved for seven straight months (according to NAR)
- Buyers in many areas are regaining some negotiating power
That combo can support more activity as the weather improves and the traditional spring season begins.
What If You’re Thinking About Selling?
If you’re a homeowner watching the market, here’s the practical takeaway:
- Don’t overreact to one weather-impacted month
- Expect activity to improve as schedules normalize and temperatures rise
- Focus on what’s happening locally, because conditions vary by city and even neighborhood
A strong strategy right now is to talk with a local agent about:
- Pricing based on current comps
- Likely spring demand in your area
- How quickly homes are moving in your price range
Conclusion
Don’t confuse a winter slowdown with a market wide red flag. January’s decline appears tied to seasonality and storm-related delays, not disappearing demand. As affordability improves and spring approaches, activity can thaw quickly.
Housing Inventory Is Improving in 2026: What That Means for Buyers
After a long stretch of buyers competing for too few homes, housing inventory is finally improving. Over the past year, more listings have come to market, and depending on where you live, that shift can open up your options in a meaningful way.
According to Realtor.com, the number of homes available for sale in January 2026 was the highest it’s been since 2020. That matters because getting closer to pre-pandemic levels signals a gradual return to a more typical market, where buyers aren’t forced to make rushed decisions with limited choices.
That said, inventory is not back to normal everywhere. And even with growth, more listings alone won’t “fix” affordability or fully rebalance the market overnight. But the changes we’ve seen recently can still have a real impact on how competitive it feels to buy.
When Supply Rises, Buyers Gain Breathing Room
In a low-inventory market, the pressure ramps up fast. Buyers often feel like they have to move immediately, waive protections, or offer well above asking just to stay in the running.
More inventory can reduce that intensity. When there are more homes for sale, buyers typically gain:
- More time to tour homes and think through a decision
- More options across neighborhoods, home styles, and price points
- More leverage to negotiate on price, repairs, closing costs, or timelines
In other words, more listings can shift the experience from stressful to manageable, even if the market still leans competitive in certain areas.
A Growing Share of the Country Is Getting Back to Typical Inventory
Inventory growth is not uniform nationwide. Some markets are seeing a stronger rebound, while others are still tight.
According to Lance Lambert, Co-Founder of ResiClub, in January 2025, just a little over one year ago, only 41 of the 200 largest metros were back to normal inventory-wise.
By around the end of the year, almost half (90) of the largest 200 metro areas were back at or above typical levels. That is a big improvement in roughly a year, and the trend is still moving forward.
Why This Matters for Your Local Home Search
If your area is one of the metros where inventory has returned to typical levels, you may notice:
- More new listings each week
- Fewer “must-bid-now” situations
- More realistic negotiations, especially on homes that sit longer
If your market is still below normal, you may still see multiple offers on well-priced homes. The difference is that, nationally, the direction is improving, and more markets are joining that list over time.
Inventory Is Expected to Keep Growing in 2026
Looking ahead, forecasts suggest the number of homes for sale could rise another 10% this year. If that happens, even more markets should move closer to balanced conditions.
That potential growth could push inventory closer to the levels we saw in 2017–2019 by roughly this fall, which would be a huge milestone for buyers. Of course, reaching something closer to “normal” nationally wouldn’t mean every market feels the same. But, it would increase the odds that more buyers in more markets can find a home without feeling boxed in by a lack of choices.
As Hannah Jones, Senior Economic Research Analyst at Realtor.com, says:
“. . . housing market conditions are gradually rebalancing after several years of extreme seller advantage. Buyers are beginning to see more options and modest negotiating power as inventory improves . . .”
That is the key takeaway: the market is starting to work with buyers again, not against them.
Conclusion
Inventory may not be fully back to normal everywhere, but it’s moving in the right direction. And some markets, it’s already there.
If you have been waiting for a moment when you have more options and a little breathing room, 2026 is shaping up to be the strongest setup buyers have seen in years.
If you want the latest on inventory in your local market, talk to an agent who can break down inventory trends, pricing, and what that means for your next move. And if you’re not sure where to start, you can always reach out to us at CENTURY 21 Affiliated.
The Top Ten 2026 Housing Markets for Buyers and Sellers
Whether you’re buying or selling this year and need to know the top housing markets, you’re in luck. Here are two lists for the 2026 housing market, one for sellers and one for buyers. But before you scroll to the lists, keep this in mind:
If you’re planning a move for 2026, the most important takeaway is this: there are many housing markets to look at this year.
Experts agree 2026 is shaping up to be one of the most geographically split housing markets in years. Some areas are leaning toward sellers, while others are finally opening real doors for buyers. Who has the advantage depends almost entirely on where you live. Selma Hepp, Chief Economist at Cotality, explains it this way:
“Looking ahead to 2026, regional differences will remain pronounced, with demand favoring areas that offer both economic opportunity and relative affordability.”
To show just how divided the landscape is, here’s a look at where sellers may have the upper hand and where first-time buyers may find their opening.
Where Sellers Stand To Win Big in 2026
Zillow identified the following metros as some of the strongest seller markets for 2026, based on buyer demand, pricing momentum, and how quickly homes are expected to sell:
- Hartford, CT
- Buffalo, NY
- New York, NY
- Providence, RI
- San Jose, CA
- Philadelphia, PA
- Boston, MA
- Los Angeles, CA
- Richmond, VA
- Milwaukee, WI
In markets like these, buyers are likely to compete for limited inventory, which can give sellers more leverage.
What sellers can expect in these markets
If you’re a homeowner in a seller-friendly metro, you may see:
- Stronger buyer interest
- Shorter time on market
- Better odds of selling close to (or above) asking price
That doesn’t mean every listing is guaranteed to fly off the shelf. But it does mean sellers who price strategically, prep their home well, and follow a good agent’s guidance can be in a strong position in 2026.
Markets Where There’s More Opportunity for First-Time Buyers
On the other hand, some metros are giving buyers more breathing room, especially first-time buyers who have had the toughest time getting in lately. Realtor.com points to 10 top metros where first-time buyers are expected to enjoy advantages in 2026:
- Rochester, NY
- Harrisburg, PA
- Granite City, IL
- Birmingham, AL
- North Little Rock, AR
- Syracuse, NY
- Baltimore, MD
- St. Louis Park, MN
- Pittsburgh, PA
- Garfield Heights, OH
These housing markets are top contenders thanks to a mix of:
- More affordable home prices
- Better housing availability
- Strong local amenities and economic health
For first-time buyers, that combination matters. It’s often the difference between wishful thinking and a real path to homeownership.
What buyers can expect in these markets
In more buyer-friendly areas, first-time buyers may find:
- Less intense competition
- More room to negotiate
- A clearer path to getting an offer accepted
What Matters More Than Any Top 10 List
Not seeing your city on either list? Don’t worry. This is a snapshot at the national level, not a definitive statement on your local market. These lists simply show how different conditions can be from one metro area to the next.
And remember: you can buy or sell no matter which side your local market favors. All you need is the right strategy for your market’s unique conditions.
Here’s what that can look like:
- Sellers in a more buyer-friendly metro may need to price competitively and focus on strong prep (repairs, staging, and marketing).
- Buyers in a seller-leaning area may still need to come prepared with a clean, compelling offer and a smart plan for competing.
To find out where your market falls and what you should expect, a local expert can help you interpret the trends and build a game plan.
Conclusion
The housing market in 2026 isn’t one-size-fits-all. Local conditions matter more than ever, and knowing whether you’re in a buyer-friendly or seller-friendly area can shape everything from pricing to negotiations.
Whether you’re buying, selling, or just exploring your options, the right strategy (and the right agent) can put you in a strong position this year. If you’re a buyer or seller ready for the next step, search the top housing markets now, or reach out to us for help today.
