Housing Market Predictions for 2026

Looking ahead to 2026, we're expecting mortgage rates to hover around 5.6%, and home prices to rise modestly—about 1.7%. While inventory is on the upswing, it’s still not quite where we were before 2020, so the market feels balanced, neither strongly favoring buyers nor sellers. Foreclosures are ticking up, but overall levels remain low. For those considering a move or investment, it’s wise to proceed only if you’re financially ready. With over two decades serving Lake, McHenry, and Cook Counties—and the southern part of Wisconsin—I’ve seen how these shifts play out locally. My experience helps clients make sense of the numbers so they can find the right home or make a solid investment decision, even in a neutral market.