The question every one asks. What will the 2027 Real Estate market look like? 2026 was a year of volatility with
not only higher interest rates, but also many other factors affecting the market. From multiple tensions across
the globe to AI upending many roles to high inflation and economic volatility. Here are some points to consider.
1. Supply remains tight overall. Some areas of the country have prices coming down, but these are areas that
supply was overbuilt during the pandemic. The housing deficit grew to over 4 million homes at the end of 2025.
2. High mortgage rates are preventing homes from coming on the market. Many homeowners are holding on to
their current rates, keeping them from listing their homes. Almost 80% of homeowners had a mortgage rate below
5-6% at the beginning of 2026.
3.Baby boomers are not keen to downsize. Many boomers are looking to age in place due to the high price of homes.
Another reason why we don't see supply increasing anytime soon.
4. While higher home prices and higher rates are the norm, the market has shifted to favor buyers. We are seeing
more price cuts and concessions. Some of our clients are getting prices we would not have seen a year ago.
5. Overall, we are seeing sellers much more open to negotiating price and concessions and this should continue
into 2027. For a buyer that has the need to buy and the ability to do so, we are seeing some great homes sell
at very favorable prices and it looks like 2027 will be a great year for buyers that have the ability to purchase.
We are very involved in the market on a daily basis and every area is different. For professional market analysis
and to ask any questions you may have, feel free to reach out to us at any time.