Buyer questions. Seller questions. Holiday-table debates about Zillow alerts and Aunt Sally’s slow-moving condo. The past few weeks have served up all of it.
And here is the good part. When you cut through the headlines and look at the real data, buyers sit up straighter and homeowners stop worrying about every blip in their Zestimate.
Below is a clear, easy to skim Q&A that breaks down what is actually happening in the housing market right now, what the numbers say, and what buyers and homeowners should expect as 2026 gets closer.
How is the housing market doing right now?
Let’s start with the national picture from NAR:
- Existing home sales rose 1.2% in October, reaching a 4.10 million annual pace
- Sales are up 1.7% compared to last year
- The median home price increased to 415,200 dollars, a 2.1% jump
- Inventory remains tight at 4.4 months of supply, which keeps prices from falling
Low inventory continues to do the heavy lifting here. Even with softer demand, prices stay supported because there simply are not enough homes available.
Are home values really dropping? Will this hurt my equity?
This topic took off after Zillow released a stat that spread fast. Yes, 53% of homes dipped in value over the past year. It sounds dramatic until you see the full context.
Here is what the data actually shows:
- Home values soared for six straight years, so a slight step back is normal
- The average dip from peak value is 9.7%, far milder than the 27% declines after 2008
- Only 4.1% of homes are worth less than their purchase price
- The typical homeowner has gained 67% in value since buying
Homeowners still have substantial equity. A minor wobble in home values does not undo years of appreciation, and it does not threaten long-term financial stability.
Foreclosures are rising. Should we worry about another 2008?
Foreclosures have increased, but the rise needs context. ATTOM reports:
- 36,766 foreclosure filings in October
- Up 3% from September and 19% year over year
- Eighth straight month of annual increases
Here is what those headlines leave out:
- We are rising from exceptionally low levels
- Foreclosure activity remains far below typical historical norms
- Lenders repossessed just 3,872 properties in October
- Many local spikes are caused by reporting delays
Homeowners are feeling real pressure from higher insurance, taxes, and everyday costs. That stress is real. The risk profile is not. Today’s loans are stronger, and most owners have enough equity to sell long before foreclosure enters the picture.
What is going on with the idea of a 50-year mortgage?
The idea caught fire online because it sounds like an easy fix for affordability. Lower monthly payment, longer term. Simple in theory.
But here is the reality:
- A 50-year loan is not legal under current federal rules
- The QM rule caps terms at 30 years
- Changing that rule would require new legislation
- Even if allowed, a 50-year loan slows equity growth and increases total interest costs
At this point, it is all talk. No lender can offer it under current regulations.
Can homeowners keep their low mortgage rate if they move?
Portable mortgages are a popular idea for a reason. If you locked in a rate in the 2% to 3% range, giving it up can feel painful.
FHFA is studying the concept, but:
- Nothing has been approved
- No official policy exists
- Most mortgage contracts today do not allow portability
It is an interesting solution in theory, but not an option that homeowners can use right now. If that changes, I will share the news quickly.
What should buyers and homeowners expect in 2026?
NAR’s latest forecast points to a more encouraging couple of years ahead:
- Existing home sales are expected to rise 14%
- Home prices are projected to rise 3% in 2025 and 4% in 2026
- Mortgage rates may fall from about 6.7% to around 6% next year
- Mortgage applications are already up 31% year over year
The takeaway: More activity, healthier price growth, and the possibility of slightly lower rates. Buyers waiting on the sidelines are already starting to stir.
Ready for your next move or planning ahead?
If you are thinking about buying, selling, or making a strategic move in your market, reach out to us! We help clients see the curveballs before they arrive, weigh the real numbers, and make decisions that protect their long-term future.
Let us know what you are considering. I will help you sort out the best timing and strategy with clear, grounded guidance.