After a couple of years where the housing market felt stuck in neutral, 2026 may be the year things shift back into gear. Expert forecasts suggest more homeowners and buyers will make their move—and for Central Virginia, that could mean a much more active, balanced market.

More Homes Will Sell

Over the past few years, rising mortgage rates and affordability challenges caused many potential movers to hit pause. But that pause won’t last forever. People move for life reasons—new jobs, family changes, upsizing, downsizing—and those motivations don’t disappear.

According to Zillow’s 2026 Housing Forecast, more listings and buyer activity are expected as market confidence returns. Realtor.com also predicts a gradual increase in home sales volume nationwide, and we’re already seeing signs of that momentum building here in Richmond, Chesterfield, Henrico, and the surrounding areas.

So what’s fueling this shift? Two major factors: mortgage rates and home prices.

Mortgage Rates Could Continue to Ease

For nearly two years, buyers have been waiting for mortgage relief. After peaking near 7% earlier this year, rates are showing signs of steady improvement.

Industry experts, including Freddie Mac and Mortgage News Daily, anticipate rates could move toward the low 6s—or even dip into the high 5s—by mid to late 2026.

Remember: rates don’t fall quickly; they “take the stairs.” Progress will be gradual and somewhat bumpy as new economic data emerges. But even small improvements can make a meaningful difference in affordability.

To put that into perspective: if rates move from 7% to 6%, many buyers could save hundreds of dollars per month on their mortgage payments. That’s real savings that can open doors for families who’ve been waiting on the sidelines.

Home Price Growth Will Be Moderate

When it comes to prices, steady and sustainable is the new normal. Forecasts from CoreLogic and Redfin suggest home prices will continue to appreciate in 2026, but at a slower, more predictable pace.

That’s great news for both buyers and sellers. Buyers can plan with more confidence, while sellers can expect continued growth without the market volatility of recent years.

Here in Central Virginia, inventory remains tight—but not as tight as before. With more homes coming on the market, price growth will likely level out to around 2–3% annually, creating a more balanced environment for negotiations.

Even if some national markets see small dips, most local areas—especially Chesterfield, Midlothian, and Richmond suburbs—are still well above pre-2020 price levels.

The Bottom Line

After two slower years, 2026 is shaping up to be a year of renewed momentum and opportunity. With home sales projected to rise, mortgage rates trending lower, and price growth steadying, the market is finding its rhythm again.

If you’ve been waiting for the right time to make your move, now’s the time to start preparing.

Let’s connect to discuss your goals, explore current opportunities, and position you for success in the 2026 market.

Contact Don Reid Properties to start your 2026 real estate plan today.