Is the 2026 Housing Market Showing Signs of Recovery?
- Freddy Kling
- 5 days ago
- 2 min read
If you have been waiting to buy or sell a home, January 2026 data indicates the market is changing. After years of limited inventory and fluctuating rates, early indicators now favor both buyers and sellers.
Below is a summary of current market trends and their impact on your real estate goals.
1. Buyers Are Back in Force
The "wait and see" period appears to be ending. Pending home sales have risen steadily in January, reaching 56,252 for the week ending January 23. Pending sales have nearly doubled since the start of the year.
Mortgage application data further supports this trend. Purchase applications are up 18% year-over-year, indicating renewed buyer confidence as mortgage rates stabilize near 6%.
2. More Options for Homebuyers
Over the past two years, limited inventory has been a major challenge for buyers. Inventory is now expanding.
Active Inventory: Rose to nearly 698,000 homes.
New Listings: Sellers are returning, with over 53,000 new homes listed last week, a notable increase compared to this time in 2025.
Buyers now have more options and face less competition than in previous years.
3. Pricing is Stable (Not Crashing, Not Soaring)
Despite increased activity, home prices remain stable. The median list price is approximately $419,900, nearly unchanged from last year.
Approximately 33% of listings have had price reductions, which is typical for this time of year. While it remains a seller's market (Market Action Index of 35.1), conditions are balanced, allowing buyers some room to negotiate.
The Bottom Line
The data indicates clear momentum in the market.
For Buyers: Increased inventory offers more choices, and stable pricing reduces competition.
For Sellers: Demand remains strong. Rising pending sales indicate that motivated buyers are ready to make offers.
If you plan to move this spring, now is the time to secure pre-approval so you can act quickly when you find the right home.
If you have questions about current rates or affordability, please contact me today.
Meet the Broker:
Freddy Kling, Simplicity Mortgage
Simplicity Mortgage is a one stop mortgage shop in Port Orange, Florida, where I make homeownership dreams come true all over the State of Florida. Our extensive portfolio and simplified loan process allows us to close loans quickly and successfully, while providing each client an exceptional customer experience.
I come from a family of entrepreneurs and have always understood the value of integrity, challenging work, and dedication. It is extremely important to me that clients and referral partners appreciate that I am available and responsive around the clock.
I have been a resident of Florida for over 50 years and graduated from Embry Riddle Aeronautical University with a bachelor's degree, majoring in computer science and a minor in mathematics. Before the mortgage industry, I was a Senior Principal Program Manager for the world’s fourth largest software company.
Call me today to discuss your real estate goals!
386-401-9000
Port Orange, Ormond Beach, Daytona Beach, Daytona Beach Shores, Ponce Inlet, New Smyrna Beach, Deltona, Orange City, Debary
Comments