The 2026 housing market is expected to be unpredictable, with industry experts offering varied perspectives on its direction. Questions remain about the impact of potential changes in Federal Reserve leadership and monetary policy, as well as ongoing global instability, inflation, and a softening job market.
This topic matters because shifts in interest rates and consumer confidence can affect affordability and demand for homes. Local buyers and sellers are watching closely to see how these factors will influence the market in the coming year.
Tamara Suminski, broker and current President of the California Association of Realtors, said California’s housing market is projected to gain modest momentum in 2026. Statewide home sales are expected to increase by approximately 2%, while the median home price is forecast to rise by 3.6%. Suminski also said that with interest rates anticipated to ease slightly next year, affordability may improve marginally.
At the local level, members of the Santa Clara County Association of Realtors report that additional inventory may come to market early in 2026 as some sellers who previously delayed or withdrew listings plan to re-enter. This could lead supply and demand toward a more balanced dynamic.
Terese Ferrara, 2026 president-elect of the Santa Clara County Association of Realtors, said: “More offers with contingencies are being accepted. While the multi-offer frenzy has cooled somewhat, well-positioned homes that are priced correctly and move-in ready are still attracting significant interest. The critical success factor is competitive pricing from day one and ensuring the listing stands out from the current competition.” Ferrara encourages buyers to act sooner rather than later while competition remains moderate but cautions against trying to time the market: “the best time to transact is when life circumstances and financial readiness align.”
Michael Gordon, 2026 president of the Santa Clara County Association of Realtors, said: “Those who are prepared ahead of time will be able to put together great deals. Those who hesitate too long trying to time the market may find themselves frustrated when conditions change faster than expected.”
Insights from local industry leaders suggest a gradually improving housing market with modest price appreciation and slightly better affordability. Buyers and sellers who stay informed and flexible may be best positioned for success.
