One of the most balanced real estate markets in recent history may be on the horizon, offering a welcome sigh of relief to those looking to buy or sell. Over the last 25 years, the housing market has seen everything from properties sliding into short sale and foreclosure to buyers competing with cash offers far over the asking price. Here’s why experts think 2026 might be the year the playing field levels out.
Rates are stabilizing
A key indicator of market health is the mortgage rate. Ryan Abrahamson, branch manager at Guild Mortgage in Fort Collins, says that after years of sharp swings, rates are settling into a healthier range.
“Over the last few years, we’ve seen the pendulum swing from the lowest rates we’ll probably ever see in our lifetimes to the highest rates I’ve seen in my 20-year career,” he says.
A small downtrend since October—from the low seven-percent range to the low sixes—has helped restore balance. With inflation slightly above target but under control and no imminent recession looming, Abrahamson says he doesn’t expect drastic movement ahead.
“For the first time in a long time, 2026 should be pretty similar to the year before,” he says.
Balanced rates benefit both buyers and sellers: Numbers that drop too low create chaos and inventory shortages, while rates that climb too high stall the market altogether.
Abrahamson expects 2026 to bring back buyers who were waiting for a dramatic rate decrease. While rates may not significantly drop this year, he notes there are options for those hoping for something lower.
Loan buydowns remain a popular way to decrease mortgage rates for the life of a loan. According to Abrahamson, for every one percent of the loan paid up front, buyers can typically reduce their interest rate by one-quarter to one-half of a percent. In 2026, this will allow many homebuyers to secure rates in the five-percent range.
For buyers deterred by low credit scores making their rates higher, limited credit history or lack of a down payment, lenders can help brainstorm creative solutions such as down-payment assistance programs and government-backed loans.
“Avoid getting too caught up in finding the lowest rate,” Abrahamson says. “Choose a lender who’s transparent about what goes into a loan and what it will cost you, and who can work with your budget and short- and long-term goals.”
Increased inventory
A stable mortgage rate brings more buyers—and more sellers who feel confident listing. According to John Simmons, co-owner and employing broker at C3 Real Estate Solutions serving Northern Colorado, 2025 saw just under a four-month inventory: A supply and demand calculation implying that it would take four months to sell homes on the market (a figure that favored sellers). He expects 2026 inventory to rise to around six months, creating a more balanced market.
“Buyers will find a better selection, have more time to shop around and enjoy more room to negotiate,” he says.
Balanced doesn’t mean stagnant. Simmons predicts that well-priced, well-marketed homes in excellent condition will still sell within the first week, sometimes the first day. That means buyers eyeing an appropriately priced property should be prepared to submit a full-price offer or risk losing the home to someone willing to pay more.
Buyers: Be flexible to score the best buy
If you’ve been hunting for the perfect home at the perfect price and are tired of waiting, it may be time to adjust your expectations or widen your search.
“Buyers finding their target areas out of reach may want to explore our rural communities or look farther north or east,” Simmons says.
He recommends Red Feather Lakes, Bellvue and Livermore as more affordable mountain options as well as Carr, Eaton, Ault, Nunn, Evans, Milliken and Fort Morgan to the east. He also notes that it’s usually unrealistic to expect a home to check every box.
“If a property checks about 85 percent of your needs, that’s usually as close to perfect as it gets,” he says.
To strengthen their buying position, Simmons suggests buyers:
Stay alert. New listings pop up every month, year-round. Apps like realtor.com and zillow.com allow prospective buyers to filter and save searches and receive notifications when new properties enter the market.
Do research at home. Narrow down listings by must-haves, like floor plan and location, before requesting showings.
Secure a lender approval letter before shopping to determine budget and submit offers without delay.
Have your home ready to list the day you make an offer if you’re a contingency buyer (a buyer with a current home to sell).
Consider listings with more days on the market. The longer a property sits, the more flexible the seller may be.
Expect more competition when shopping for farm and ranch properties on five or more acres.
Remember that new construction can be twice as expensive as existing homes.
Sellers: Increase your home’s desirability
Experts agree it’s still a good time to sell, but sellers will need to work a bit harder to stand out.
“With inventory on the rise, pricing your home correctly is more important than ever,” Simmons says. “Don’t test the market with a higher price, as it will likely sit unsold. Overpricing can create a negative stigma, ultimately lowering your sale price.”
Market conditions, location and property condition also matter. Homes that look, feel and smell fresh and well-maintained will have a clear advantage.
When considering upgrades, Simmons recommends collaborating with your Realtor to bring in an interior designer who can suggest improvements with a strong return on investment.
“Designers know what’s trending, and their guidance on paint, flooring and finishes can make a big difference,” he says. “Avoid assuming you can select these items yourself. Most DIY choices won’t yield the same return.”
Simmons says cosmetic updates typically bring more value than large projects.
“Think of it like selling a car: No one wants a scratched, dinged, smelly or worn vehicle,” he says.
For a home that just won’t sell, ensure it’s being marketed widely with current photos and video across social media, print and online platforms. Then discuss creative incentives with your Realtor, such as seller financing, concessions or adjusting broker compensation.
“Every buyer wants a bargain, and every seller wants top dollar,” Simmons says. “If you don’t bridge that gap, your home will not sell.”
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The 2024 NAR Settlement and What It Means for You
The traditional commission model—in which sellers paid both listing-agent and buyer-agent commissions (totaling roughly 4-6 percent) and the commission amount was locked in and displayed on the MLS —underwent major changes in 2024 when a federal jury ruled that the model contributed to artificially high commissions and violated antitrust law.
As a result, commission rates are now more negotiable, buyer-agent commissions are generally the buyer’s responsibility and commissions are no longer listed on the MLS.
What this means for buyers
While sellers may still choose to cover the buyer-agent fee, buyers are ultimately responsible. Fee agreements are now set up front, and buyers can negotiate among agents to find the best value.
“With competition among agents more direct, some may lower their rates, offer flat fee services or provide more flexible fee structures, which could reduce overall buying costs,” Simmons says. “You can shop around, ask your agent exactly what they’ll do for you and compare services versus cost.”
What this means for sellers
Sellers are no longer required to pay the buyer-agent’s commission, which could reduce closing costs, but they may still choose to do so to remain competitive.
“Since compensation is no longer standard, you may need to factor buyer-agent fees into your pricing or offer other incentives if you want broad exposure,” Simmons says.
Sellers now have more tools to attract buyers, from price reductions, closing cost credits and concessions to sticking to the traditional model and paying the buyer-agent fee.
