The Housing Market Is Turning a Corner Heading Into 2026

By Heather Taylor, REALTOR® – MDHomesByHeather.com

“Opportunities don’t happen. You create them.” — Chris Grosser

After a few years of high interest rates, low inventory, and a lot of hesitation from both buyers and sellers, the housing market is finally starting to shift. And while the change isn’t dramatic or overnight, it is meaningful — especially for anyone thinking about making a move in 2026.

Here in Maryland and the greater Crofton area, I’m seeing more activity, more conversations, and more confidence from both sides of the market. We aren’t heading into a frenzy, but the slow, steady momentum is real.

Here are three major trends that are shaping the path forward.

1. Mortgage Rates Are Gradually Easing — and Buyers Are Noticing

Rates naturally rise and fall, especially in uncertain economic seasons. But the bigger story this year is the overall downward trend. The last few months have brought some of the most favorable rates we’ve seen in 2025.

And that makes a real difference.

Freddie Mac’s Chief Economist recently noted that today’s rate improvements could save buyers thousands of dollars per year compared to earlier this year — a game-changer for affordability.

What does that look like in real numbers?

According to Redfin, a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than they could just one year ago.

That increased buying power is one of the biggest reasons activity is picking up again.

2. More Homeowners Are Ready to Sell

For years, many homeowners felt “locked in” to their ultra-low pandemic-era mortgage rates, which kept inventory extremely tight. But that’s beginning to change.

As rates ease and life milestones (new job, growing family, downsizing, etc.) take priority again, more people are choosing to sell — even if it means adjusting to a higher rate than they had before.

Realtor.com data shows a notable increase in homes hitting the market, and inventory levels are inching closer to what we saw five to six years ago.

More listings = more choices for buyers
More choices = a healthier, more balanced market

This is great news for anyone who felt stuck over the past few years.

3. Buyers Are Re-Entering the Market

It’s not just sellers making moves. With improved affordability and more homes to choose from, buyer activity is on the rise.

The Mortgage Bankers Association reports that mortgage purchase applications are up compared to last year, which is one of the clearest signs of growing demand.

And leading real estate economists — from Fannie Mae, NAR, and the MBA — predict moderate but steady sales growth as we move into 2026.

No one is expecting a sudden surge, but we are seeing the early stages of a gentle market recovery.

What This Means If You’re Thinking About Buying or Selling

The housing market may not look like the one we grew used to years ago — and that’s okay. What we’re seeing now is a healthier kind of movement: steady, stable, and more predictable.

That’s exactly what many people have been waiting for.

If you're thinking about selling:

You may benefit from rising buyer demand and expanding inventory. Pricing is stabilizing, and well-prepared homes are still attracting strong interest.

If you're thinking about buying:

You may have more options and better affordability than you did at the start of the year — and the window of opportunity is widening.

Let’s Talk About Your 2026 Goals

Every market shift creates opportunity. The key is knowing how to navigate it.

If you're unsure whether now is the right time to buy or sell, I’d love to walk you through your options and help you understand what’s happening in your specific neighborhood.

📲 Connect with me, Heather Taylor, REALTOR®
👉 Visit: MDHomesByHeather.com
👉 Let’s plan your best move heading into 2026.