The past few years in the housing market have been marked by uncertainty, shifting demand, and volatility. But as we approach 2026, several key signals suggest the market is turning a corner. At the same time, homeowners and prospective buyers face a changing landscape of affordability, timing, and economic context. Here’s what you need to know.

1. A Market Turning a Corner

What does “turning a corner” mean here? Two trends stand out:

• Inventory is gradually improving, which reduces extreme supply-constraints.

• With interest rates stabilizing (or at least no longer surging), buyer demand is better able to respond.
  The combination points to a more balanced market — one in which buyers and sellers may both have more opportunities, rather than one side being entirely dominant.

For sellers: fewer frenzied bidding wars, but also fewer deeply discounted sale-prices.
For buyers: less competition and more negotiating wiggle room, but still the reality of meaningful prices.

2. Affordability Is Catching Up

One of the clearer silver linings: we are seeing what some call the best affordability in over two years. That means that buyer purchasing power is improving relative to home-prices + interest rates + incomes.

Why this matters:

• For buyers, even a modest improvement in affordability can unlock purchases that were previously out-of-reach.

• For sellers, limited competition from buyers means price expectations may need to be realistic.
  Affordability is not perfect, but the trend is moving in a more favourable direction.

3. Two Things Every Homeowner Should Know Before Selling

If you’re considering selling your home in the next year or so, here are two vital takeaways:

• Timing matters. If you wait too long, you may face increased competition from other sellers (as more inventory comes onto the market), whereas pricing may adjust downward if demand softens.

• Condition and presentation count. With more options available for buyers, homes that are not well-presented or need significant work may linger longer or sell for less. Ensuring the home is ready to show well and appeal widely strengthens your positioning.

Thus, if you’re a homeowner: now is a good time to plan ahead. Get your home in tip-top condition, think carefully about timing, set expectations based on balanced market signals, and work with a real-estate professional who understands the shifting dynamics.

4. The Economic Backdrop: Recession Fears Are Easing

In previous cycles, concern about a looming recession weighed heavily on housing markets — buyers pulled back, lenders tightened, and sellers hesitated. But increasingly, many experts are not worried about a recession in the short term.

This doesn’t mean no risk. It means the probability of a deep, broad-based recession appears lower than some feared. For the housing market, that suggests there may be more stability and fewer dramatic surprises — which in turn gives both buyers and sellers greater confidence.

5. What This Means for You, Locally

Whether you’re looking to buy, sell, or simply keep an eye on things, here’s a practical breakdown:

• If you’re buying: This may be one of the better windows in recent years — affordability is improving, competition is easing, and the macro-risks are more moderate. Move deliberately: define your budget, lock in favourable financing, and be prepared to act when a good home appears.

• If you’re selling: You may still achieve a strong sale, but the “gold rush” conditions of the past few years are likely over. Focus on presentation, timing, and realistic pricing.

• If you’re holding/investing: The slide or surge extremes may be fewer — meaning the market might settle into a quieter, steadier pace. That’s good for planning, but perhaps less good if you were hoping for rapid windfalls.

Final Thoughts

The housing market into 2026 is not going to be a straight line upward or downward — rather, it looks set to enter a more stable chapter. Affordability is improving, economic fears are easing, and the playing field is gradually becoming more balanced. For many, this means fewer extremes, fewer surprises — but also fewer easy “get rich quick” moments.

If you’re planning a move (buying or selling), this is a period to be thoughtful: assess your goals, prepare your home, monitor market conditions, and align with professionals who understand both the local nuances and the broader signals.