A few different factors could help push home prices up, down or keep them stable next year.

Homebuyers finally got some good news late this year when mortgage rates dropped considerably following the Federal Reserve’s back-to-back rate cuts in September and October. With the Fed easing its stance on rates, the average 30-year fixed mortgage rate fell into the low-6% range, a notable improvement from the 7%-plus rates homebuyers faced earlier this year.

As 2026 approaches, the direction of home prices is also up in the air, so we spoke with mortgage and real estate professionals to get their predictions about where home prices could head next year. Here’s what they had to say.

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Steven Glick, director of mortgage sales at Ziffy, an all-in-one AI-powered real estate investment platform, expects flat to mildly positive home appreciation at somewhere between 0.5% and 2%.

“That band reflects two things moving in opposite directions: Rates have eased enough to coax demand back, but affordability is still stretched, and supply is slowly rebuilding,” Glick says.

“We expect moderate price growth in 2026 — likely below 4% on average across the country,” Calixto says.

Karen Mayfield, national head of originations at mortgage-as-a-benefit provider Multiply Mortgage, sees a similar pattern unfolding as lower rates bring buyers and sellers back into the market. However, Mayfield predicts pent-up demand will absorb new home supply.

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Updated: Boston condo for sale blog 2025