Housing Market Shows Signs of Balance as Agent Sentiment Gains Momentum in Early 2026

A recent national survey of real estate professionals indicates a modest uptick in optimism, with market conditions shifting from a pronounced buyer’s advantage toward a more balanced environment. Key metrics point to stabilizing home prices and increased inventory levels.

Real estate agents across the U.S. report a notable shift in market dynamics as early 2026 unfolds, reflecting a move away from the aggressive buyer’s market of the previous two years. According to a national survey conducted in January 2026, 54% of agents now describe market conditions as 'balanced,' up from 41% in December 2025 and 33% in January 2024. This marks the first sustained increase in balanced market sentiment since mid-2023. The data reveals that median home prices have stabilized, rising just 0.7% month-over-month in December 2025 and 1.2% year-over-year, compared to a peak annual growth of 6.8% in early 2023. At the same time, active listings climbed to 1.8 million units in January 2026—18% higher than the same period in 2024—signaling a growing supply of homes for sale. The average days on market have increased to 42 days, up from 34 days in early 2024, indicating less urgency among buyers. The shift is particularly evident in metropolitan regions such as Phoenix, Atlanta, and Denver, where price growth has slowed to below 2% annually. In contrast, high-cost markets like San Francisco and Seattle continue to see moderate price appreciation, but with inventory levels rising by 12% and 15% respectively since last year. Market analysts interpret the trend as a sign of normalization after years of elevated demand and constrained supply. Mortgage rates, which averaged 6.9% in January 2026, remain a key factor limiting buyer activity, but the broader market is no longer characterized by rapid price spikes or bidding wars.