Are Home Prices Going to Drop in 2026?
One of the biggest questions homeowners and buyers are asking is simple: Are home prices going to drop in 2026?
It’s understandable. After rapid price growth in recent years, many people are expecting a correction. But current housing forecasts suggest a different outcome.
What Experts Are Projecting
National housing economists project home prices to continue rising, but at a much slower pace, roughly in the range of normal, healthy appreciation.
This isn’t the explosive growth of the pandemic years, and it’s not a crash. It’s stabilization.
Why Prices Aren’t Expected to Fall Sharply
Several factors are keeping prices supported:
Limited housing supply in many markets
Builders remaining cautious with new construction
Continued demand from buyers who delayed purchases
In Michigan, many communities are built-out, meaning there simply aren’t large numbers of new homes entering the market. That keeps pressure on prices, even as demand cools slightly.
Could Prices Dip in Some Areas?
Yes.. some neighborhoods may see small corrections, especially where homes are overpriced or need significant updates. But broad, market-wide price drops are not what forecasts are pointing to.
Most projections suggest:
Flat to modest appreciation
Price stability in established neighborhoods
Stronger performance for well-maintained, well-located homes
What This Means for Buyers and Sellers
For buyers, hoping for a large price drop may lead to missed opportunities. For sellers, pricing correctly, and not aggressively, is more important than ever.
The market is rewarding realism, not speculation.
The Bottom Line on Prices
The most likely scenario for 2026 isn’t a drop, it’s a slow, steady market that favors informed decisions.
Prices aren’t running away, but they’re not giving back recent gains either.
Data Source & Attribution
This article references national housing projections from the Fannie Mae Economic & Strategic Research Group (February 2026 Housing Forecast). Local insights are based on current MLS data and recent market activity across Southeast Michigan.