What Buyers & Homeowners Can Expect from the 2026 Housing Market

The 2026 housing market is already taking shape, and buyers and homeowners in North Shore Wisconsin are asking the same question: Will it finally get easier to make a move?

National forecasts from the National Association of REALTORS, Realtor.com, and Zillow show a slow but meaningful shift toward a more balanced market. The theme for 2026 is improvement, not a dramatic reset. Conditions are easing in small but important ways.

Here is what the data is telling us and how it may guide your strategy for the coming year.

Sales Activity: Slow Improvement, Not a Surge

All three major national forecasts anticipate more home sales in 2026 as affordability improves. The level of growth varies by source, but the direction is consistent.

NAR expects a fourteen percent increase in home sales. Zillow projects a 4.3 percent increase to approximately 4.26 million total sales as pent-up demand gradually comes forward. Realtor.com predicts a more modest 1.7 percent rise due to ongoing low turnover, especially among homeowners who currently hold mortgage rates below six percent.

In North Shore Wisconsin, the pace of change is more locally driven. Over the past three months, Mequon recorded a median sale price of about 559,000 with homes selling in approximately 49 days. Whitefish Bay posted a median sale price near 560,000, with homes selling in about 41 days. Fox Point reported a median sale price of approximately 555,000 and a median market time of about 39 days. These numbers show steady demand and consistent movement, even as higher rates influence the market.

Home Prices: Continued Stability and Long-Term Strength

National forecasts expect home prices to rise between 1.2 percent and 4 percent in 2026. Price declines are expected to be limited to a small number of large markets, down from twenty-four in 2025 to twelve in 2026.

Across North Shore Wisconsin, pricing has remained stable and resilient. Median prices in Mequon, Whitefish Bay, and Fox Point continue to cluster in the mid 500,000 range. Whitefish Bay experienced one of the strongest year-over-year gains in the region, while Mequon and Fox Point reflect minor softening but remain historically strong.

Homeowners can expect continued long-term equity growth. Buyers may discover slightly more negotiation room than they have had in recent years, but steep discounts remain unlikely.

Mortgage Rates: Better Than 2025 but Not Returning to Pandemic Levels

All forecasts expect mortgage rates to stabilize above six percent in 2026. Realtor.com anticipates an average of 6.3 percent. NAR and Zillow expect gradual improvement but no substantial decline.

A return to three percent mortgage rates is not forecasted. The important shift is that rates appear to be leveling out rather than increasing sharply, which improves predictability for buyers.

For North Shore buyers, early conversations with a lender remain essential. Understanding how pricing and local taxes affect your monthly payment helps you make informed decisions before the spring market picks up.

Inventory: More Choices but Still Below Normal

National forecasts anticipate an 8.9 percent increase in existing home inventory and approximately 4.6 months of supply. This reflects a trend toward a more balanced market.

North Shore Wisconsin continues to experience relatively low supply, even as new listings slowly return. Days on market in most communities still hover between the upper 30s and upper 40s, which shows that buyers are active but not pressured at the extreme levels seen during the pandemic. More inventory benefits both sides. Buyers gain more options, while sellers gain more qualified and motivated shoppers entering the market.

Affordability: Gradual Improvement

Affordability indicators are moving in the right direction for 2026. The typical payment share of income nationally is projected to fall to 29.3 percent, marking the first time since 2022 that the number dips below 30 percent.

As affordability improves, more first-time buyers are expected to reenter the market. Renters also benefit from easing rental costs, which supports faster saving for down payments.

For renters across the North Shore communities, this may be an ideal window to begin planning a purchase, especially if rates settle and inventory increases.

What It Means If You Want to Buy in 2026

Buyers in North Shore Wisconsin can expect:

Slightly lower borrowing costs compared with early 2025
More homes to choose from across Mequon, Cedarburg, Grafton, Bayside, Fox Point, Whitefish Bay, and Shorewood
Moderate competition rather than the bidding wars of recent years

The most effective strategy is preparation. Establish your price range early, secure preapproval, and be ready to act when high-quality homes come online.

What It Means If You Want to Sell in 2026

Sellers remain in a strong position. Prices are stable, and local demand remains consistent. Median pricing in the mid 500,000 range across multiple North Shore communities reflects strong long-term equity and buyer confidence.

Sellers in 2026 will benefit from:

Healthy resale values
A growing buyer pool as affordability improves
Strong equity gains to leverage into a new home

Pricing strategy will matter as buyers become more payment-sensitive, but well-prepared and well-presented homes should continue to perform extremely well.

Bottom Line

National forecasts point toward a more navigable and balanced 2026 housing market. In North Shore Wisconsin, stability, steady demand, and improving affordability create an environment in which both buyers and sellers can make confident decisions.

If you are thinking about buying or selling in 2026, now is the right time to begin planning. A thoughtful strategy is the key to making the most of the opportunities ahead.

If you would like a customized forecast for your specific neighborhood or price range, I would be happy to prepare it for you.