Spring 2026 Home Buying Guide: What You Need to Know As Prices Stabilize and Inventory Improves

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Spring 2026 Home Buying Guide: What You Need to Know As Prices Stabilize and Inventory Improves

The busiest time of the year for home sales has just begun, and homebuyers are seeing an improved market this spring – although it may not be as good as they had hoped.

By the end of February, home buying conditions had improved significantly since mid-summer, when prices rose close to 7% and purchasing power was strong. Mortgage rates were trending lower, falling below 6 percent for the first time since 2022. More homes were being listed, home price growth was slower and wage growth was outpacing inflation. All these factors have helped improve accessibility. A recent study by financial services firm First American found that home affordability — meaning the maximum amount the average American can afford — has surpassed the national median home value for the first time in more than three years.

The combination of these factors is a sign that the market is in normal condition, although it has not fully recovered, according to Odeta Kushi, deputy economist at First American.

“We were classifying this year as progress without disruption,” he said.

However, in the past month, some hiccups have appeared. Continued progress toward an affordable housing market could be jeopardized by the ongoing war in Iran and its impact on oil prices: Rising costs are fueling fears of inflation and putting upward pressure on 10-year Treasury yields. Mortgage rates, which tend to follow these productivity measures, are also rising. As a result of that pressure, mortgage rates have increased by half a percentage point and are currently around 6.5%.

The war also raised economic concerns about the potential for inflation and a shrinking labor market, which could strain household budgets and cause some homebuyers to put their plans on hold.

Despite these headwinds, however, there is guarded optimism for the spring shopping season. Brett Sikora, founder and CEO of Align Real Estate Solutions, says there is still consumer demand and that, despite economic concerns, “people are still very confident about owning real estate.”

Here’s what buyers and sellers can expect ahead of the next few months from an unsettled home buying season.

Low mortgage rates

Mortgage rates may be higher than in February, but they remain lower than last year.

As of April 2, Freddie Mac’s benchmark 30-year fixed-rate mortgage rate was 6.46%, compared with 6.64%. The rate difference is enough to lower the monthly payment on a $400,000 mortgage by just over $50 a month, which could make a difference for some buyers on the edge of affordability.

If prices resume the downward trend seen earlier this year, as industry experts expect will happen once the conflict in the Middle East ends, those monthly savings will also improve, giving buyers more access to the market.

Inventory is increasing

Inventory has increased compared to last year. According to listing site Zillow, there was a 4.2 month supply of homes on the market in March.

Additional offers have a positive impact on purchasing in two ways. First, it helps keep home prices from rising too quickly and exceeding the neighborhood’s true market value. Second, it reduces competition for available homes, which means buyers have more time to view multiple homes, put together an offer and negotiate a sale.

Keep in mind, however, that inventory is growing rapidly in some cities while remaining stable in others. In areas where inventory is not growing quickly, home prices tend to rise quickly and competition among buyers remains strong.

Home prices are stabilizing

Home price growth has slowed significantly recently. Prices rose less than 1% year over year, according to several different data sources. In contrast, annual price growth has been over 6% over the past decade.

According to Zillow, the average home costs $365,545 and has an average mortgage payment of $1,789, excluding insurance and taxes and a 20% down payment. That is 4.4% lower than the average monthly payment last year.

However, some areas in the US are seeing prices rise rapidly due to a shortage of real estate and strong consumer demand. Cities in the Northeast and Midwest saw prices continue to rise at a faster pace, while those in the South and West saw smaller gains. Some cities where supply is at or above pre-pandemic levels are even seeing price drops.

The net effect of all these features is improved accessibility. Lower prices, more supply and slowing home price growth — combined with higher wages — mean consumers have more purchasing power this year, Kushi said.

“[It’s] It’s just the work of the basics is a little better this year as [they] about affordability,” he adds.

For buyers looking to take advantage of these improved conditions, Sikora recommends making sure they are financially prepared and working with a real estate professional to guide them through the entire process.

“We are in a market where you need to be very careful,” said Sikora. “You have to have the right people around you to get to the closing table, whether you’re a buyer or a seller.”