2026 Housing Outlook: What National Forecasts Could Mean for Connecticut Buyers & Sellers

It’s hard to believe another year is coming to a close. As we wrap up 2025, our team is incredibly grateful for everyone who trusted us with their real estate journey this year. It’s been a privilege to serve our clients and our local communities across Connecticut!

As always, this time of year brings a lot of questions about what’s ahead, especially when it comes to the housing market. While real estate is deeply local, national forecasts can provide helpful context as we look toward 2026.

Recently, the National Association of REALTORS® held their annual NAR NXT Conference, where Chief Economist Lawrence Yun shared his outlook for the year ahead. Here are a few key takeaways, and what they could mean for buyers and sellers here in Connecticut.

Homeowners Are Staying Put Longer... But That May Be Changing

According to the 2025 NAR Home Buyers and Sellers Generational Trends Report, the median homeowner now stays in their home for 11 years before selling.

That’s a meaningful shift from past decades, and it explains why inventory has remained tight in many markets.

However, even a modest drop in mortgage rates could encourage more homeowners to list. After 11 years, many people have:

• Built significant equity
  
  
• Outgrown their current space
  
  
• Experienced lifestyle changes (family size, work-from-home needs, downsizing goals)

If more homeowners decide it’s time for a change, that could contribute to an increase in existing home sales in 2026.

What This Could Mean for Buyers

If these forecasts hold, buyers may see:

• More resale inventory coming to market
  
  
• Slightly less competition in certain price ranges
  
  
• More balanced negotiations compared to the past few years

While affordability will still matter, increased options can make the process feel less rushed and more strategic.

What This Could Mean for Sellers

For sellers, this environment reinforces the importance of preparation.

Homes that are well-priced, well-presented, and marketed thoughtfully are likely to stand out — especially as more listings return to the market. Equity gains over the past decade-plus may also give sellers more flexibility when planning their next move.

Planning Ahead Makes All the Difference

If you’re considering a move in 2026 — whether that means moving up, downsizing, or relocating — now is a smart time to start planning.

Early conversations allow you to:

• Understand your equity position
  
  
• Explore timing scenarios
  
  
• Align your next purchase or sale with your broader goals

And if your plans take you outside of Connecticut, we’re happy to connect you with a trusted agent through our PLACE network.

Not Sure Where You Stand? We Can Help!

Already own your home? Reach out for a free home evaluation to see what your property may be worth in today’s market. Many homeowners are surprised by how much equity they’ve built.

Thinking about buying? Let us know what you’re looking for. We’re always happy to keep an eye out and help you start narrowing your options, even if your timeline is still flexible.

Real estate is always evolving, but thoughtful planning and trusted guidance make navigating change far less stressful. As we head into a new year, our team is here to support you every step of the way!