Smart Steps to Start Your 2026 Homebuying Plan

Starting your 2026 homebuying journey now can give you a meaningful edge — especially if you know what the market looked like at the end of 2025.

In the final months of 2025, U.S. homeowners and prospective buyers saw a mix of encouraging and cautious housing signals:

• Existing-home sales rose modestly in October, reaching the fastest pace since earlier in the year and climbing about 1.7% year-over-year. Inventory was also slightly higher than 12 months prior, giving buyers a few more options than recent years.
• Mortgage rates fell to their lowest level of the year (around 6.15% for a 30-year fixed by late December), improving affordability compared with the prior year.
• Despite these positives, home price growth slowed and affordability still remains a challenge for many, with homes staying on the market a bit longer than in 2024.

Economists forecast that existing home sales could increase further in 2026, with modest price growth and slightly improved buying conditions.

So, how can you start confidently this year? Let’s break it down.

1. Audit Your Personal Finances First

Before you start touring homes, take stock of income, savings, debts, and credit. Getting pre-approved not only clarifies your budget — it signals serious intent to sellers.

• Know exactly what you can afford
• Understand monthly payments at different rate scenarios
• Get clarity on down payment options

(Pro Tip: Mortgage rates are trending near year-low territory — a good backdrop for buyers ready to act.)

2. Study Local Market Signals

National data is a helpful backdrop, but real estate is hyper-local. Look at listings, price trends, days on market, and inventory levels in your target neighborhoods. Some areas may be more balanced, while others still favor sellers.

• Price trends have slowed in many markets and even dipped in some metros
• Inventory expanded slightly in late 2025, giving buyers more choices
• Homes, on average, stayed on market longer — meaning less frantic competition

(These shifts can create pockets of opportunity for prepared buyers.)

3. Set Clear Goals and Priorities

Define what matters most in your home search — whether it’s location, space, schools, commute, or lifestyle features. When spring activity picks up, clarity lets you act quickly and confidently.

• Must-have vs nice-to-have
• Lifestyle vs investment balance
• Budget limits and comfort zone

4. Keep Consumer Confidence in Context

Many potential buyers remain cautious, even when rates dip or inventory rises. But hesitation from others can create opportunity for buyers who are prepared. With mortgage rates more favorable than mid-year and a more balanced market, readiness can be your secret advantage.

Starting your 2026 homebuying journey doesn’t mean you need to have everything figured out today — it just means taking the first smart step. With mortgage rates stabilizing, inventory slowly improving, and many buyers still sitting on the sidelines, preparation is your biggest advantage. When you understand your finances, your local market, and your priorities, you’re in a much stronger position to move confidently when the right opportunity appears.