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Home prices to decline in Raleigh and Phoenix in 2026, Realtor.com says
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Prospective homebuyers in certain markets may finally catch a break in 2026, according to Realtor.com’s latest forecast.
Jake Krimmel, senior economist at Realtor.com, told Fox News Digital that homes in Raleigh, Denver, Phoenix, Northern California and the Pacific Northwest will see prices decline in 2026.
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Realtor.com estimates that homes in Raleigh, Denver and Phoenix will see prices decline in 2026. (Eric Thayer/Bloomberg/Getty Images / Getty Images)
“We forecast outright price declines in much of Florida,” Krimmel added, noting that Miami is the exception and is projected to see an increase.
The forecast also suggests that affordability will improve in several markets even if home prices edge higher. Falling mortgage rates are expected to reduce monthly payments enough to offset modest price gains.
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“Lower interest rates mean lower monthly payments. Even metro areas where we expect to see modest price appreciation will be more affordable in 2026 than in 2025,” Krimmel said.
Austin is among the metro areas in the United States that will see housing pressures ease. (Jakub Porzycki/NurPhoto/Getty Images / Getty Images)
If rates fall to the 6.3% range as projected, a 1% to 2% increase in home prices would still leave buyers paying less each month than they would in 2025.
That dynamic is expected to play out in markets such as Austin, Dallas, Nashville, Charlotte and Miami.
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The Realtor.com forecast also predicts that easing mortgage rates and slower home-price growth are expected to nudge affordability in a slightly better direction in 2026.
A chart from a Realtor.com forecast showing housing affordability. (Realtor.com / Fox News)
Krimmel says that the monthly payment on a median-priced home will edge down by 1.3% next year, marking the first annual decline since 2020.
“We are hardly out of the woods on affordability, but are at least moving in the right direction,” he said.
