Happy New Year! A fresh year on the horizon means it is time for our annual real estate predictions. Since the dramatic rate jumps of 2022, the real estate market has been a bit of a roller coaster, with both buyers and sellers unsure of their footing. We believe that 2026 will be the beginning of a more predictable and balanced phase for real estate with greater rate stability, modest price growth, a rebound in sales (more buyer activity), and improved affordability.
A SWEET SPOT FOR BUYERS
If you have been looking for your dream home, the stars may finally align in 2026. Rates are expected to remain relatively stable, and we may see some movement below the 6% range by mid-year.
Many listings were pulled off the market last year as properties failed to sell, so we anticipate that many of those homes will return to the market, along with new inventory. There should finally be more choices for buyers in 2026, and this increased selection, combined with more favorable rates, will help motivate buyers to move forward. New tax policy may also benefit buyers, with larger refunds that could help support home purchases, though we likely won’t see the impact of those refunds until late spring.
SELLERS WILL SELL
We anticipate a significant uptick in inventory in Q1, which means sellers will need to stay competitive to get their homes sold. Buyers will be returning to the market, but not as rapidly as sellers will be listing, so homes will need to be well prepared and priced correctly. Clean,
decluttered, and thoughtfully updated homes will move the fastest, as buyers remain savvy and focused on value. The good news is that as buyer activity increases, overall market confidence should grow, helping to support property values. If you are considering selling, we encourage you to reach out early so we can help you prioritize improvements and maximize your return on investment.
WE’RE NOT MOVING!
If you are happy in your home, or married to a low interest rate, it is wise to stay on top of general maintenance, improve major systems as needed, and tackle remodeling projects over time. Declining interest rates will make home equity lines more attractive, helping homeowners finance improvements. One day, you may decide to sell, and the work you do each year will yield meaningful value in the long run. In the meantime, you may as well enjoy that new kitchen now!
VALLEY GROWTH
Arizona’s population and employment growth are expected to continue, driven by ongoing business expansion and lifestyle-driven migration. Our job market remains strong and diversified, which should support long-term property values. Pinal County is also poised for growth, offering increased affordability and additional opportunities for buyers seeking value within the greater Phoenix metro area.
With decades of experience in the Valley, we have helped our clients navigate every kind of market and we know how to help our clients get the best results. Whether you are thinking about buying, selling, or just want to understand your options, we are always happy to help.
Reach out anytime to John at (602) 615-0843 or Natascha at (602) 909-4995.
Whether you are buying or selling, the key is to be prepared, educated, and ready for the opportunities that are coming your way. We would love to help you build a strategy for success, so call us today for your complimentary consultation at (602) 615-0843. We have decades of experience, community knowledge, and the insight to answer all your real estate questions!
John Karadsheh is the Designated Broker and Owner of KOR Properties and has been a Multi-Million Dollar producing agent for over 23 years. He is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS), and serves on the Arizona Regional MLS (ARMLS) Rules & Policies Committee, ARMLS Appeals Committee, and the West and Southeast Realtors of the Valley Professional Standards Committee.
Natascha Ovando-Karadsheh is an Associate Broker, Co-Owner of KOR Properties, a Multi-Million Dollar Producer for over a decade, Accredited Buyers Representative (ABR) and Certified Real Estate Negotiation Expert (RENE). She a Member and Past-Chair of the City of Mesa Economic Development Advisory Board, member of the Board of Directors of the Greater Phoenix Economic Council, and serves on the Salt River Project Customer Utility Panel.