As we move into 2026, the housing market is showing clear signs of entering a more balanced and predictable phase. After several years of sharp swings, economists are forecasting a market defined less by volatility and more by stability, normalization, and strategic opportunity.
At Tim Van Damm & Associates, we closely track national and local data to help our clients stay ahead of market shifts. The consensus among leading housing economists points to 2026 as a year of modest growth, improving conditions, and steadier activity.
National forecasts suggest home prices will continue to rise but at a slower, more sustainable pace. At the same time, sales activity is expected to increase as conditions become more navigable.
“We are expecting home sales to increase by about 14% nationwide in 2026.”
— Lawrence Yun, Chief Economist, National Association of Realtors
Mortgage rates are expected to remain more predictable than in recent years, and economists anticipate continued, gradual improvement in overall affordability driven by moderating price growth, inventory gains, and income trends.
While rates are unlikely to return to the historic lows of the past, even incremental improvements can have a meaningful impact on buyer confidence and long-term market activity.
At Tim Van Damm & Associates, we see 2026 shaping up to be a year where strategy matters more than speed and where local expertise will make the difference between a good outcome and an exceptional one.
LOCAL MARKET UPDATE
EARLY 2026 MARKET DIRECTION
Based on the latest available data (December 2025), there is a clear shift toward more balanced conditions across many North County coastal markets. Communities such as Rancho Santa Fe, La Jolla, Del Mar, and Encinitas have moved out of extreme seller-driven dynamics and into a healthier, more negotiable environment.
At the same time, select family-oriented neighborhoods continue to experience tight inventory and seller-leaning conditions, reflecting ongoing demand in those areas.
As we move into 2026, strategy, pricing, and local expertise matter more than speed alone—especially within the luxury segment.
