US Housing Market Analysis: Price Increases, Decreases, and Predictions for 2026

Understanding the Current State of the US Housing Market

In an interview with ‘The Claman Countdown’, Jason Haber, co-founder of the American Real Estate Association, assesses the current state of the US housing market and discusses Redfin’s forecast of a significant housing market shift in 2026.

US Monthly Housing Payments: A Recent Drop

As per the latest report from Redfin, the median US monthly housing payment experienced a significant decrease, reaching close to a two-year low. However, this downward trend could have been more pronounced if it weren’t for the ongoing increase in sale prices.

The median monthly housing payment dipped to $2,413 in the four weeks ending January 11. Despite this, the national median home sale price saw a 1% increase year on year. This is a noticeable drop from the 4% to 5% increase seen at the beginning of 2025.

Housing Market Trends: Regional Differences

Some regions experienced faster price growth than others. For example, Cincinnati, Ohio, saw the median home-sale price increase by 8.4% year over year – a leap that’s over eight times the national increase.

Detroit and Philadelphia were not far behind, with median home-sale prices rising by 6.5% and 5.8% year over year, respectively.

Contrastingly, the metros that experienced the biggest declines were primarily in the South and on the West Coast. The top declines were in Dallas and San Jose, California, where median home-sale prices dipped 4.4% and 3.7% year over year, respectively.

Future Projections for the Housing Market

Despite a decrease in the number of people buying and selling homes, with pending home sales falling 5% year over year, and new listings declining 4.7%, Redfin economists suggest a possible increase in pending sales due to the recent decline in mortgage rates.

The average rate on the 30-year fixed mortgage fell to 6.06%, the lowest since September 2022, as reported by Freddie Mac.

Homebuyers and investors interested in which markets may see the biggest surge in home buying as mortgage rates fall or where prices are expected to rise in 2026 are encouraged to keep a close eye on these trends.