What To Expect in 2026

Real estate in 2026 is shaping up less like a rerun of the pandemic boom and more like a year of adjustment, with somewhat lower borrowing costs, a bit more choice, and participants behaving more deliberately than desperately.

Mortgage rates and financing

- Many projections put the typical 30‑year fixed mortgage in the low‑ to mid‑6% range for 2026, which would be a modest improvement in affordability compared with the hand that buyers have been dealt in 2025, but still far from the ultra‑low rates of the pandemic years.

- Modest rate declines are expected to coax some buyers back into the market and lift sales, though industry forecasts agree that ultracheap “3% money” is unlikely to return, so everyone’s expectations will need to continue recalibrating.

The portable mortgage conversation

- The idea of portable mortgages, which would let homeowners carry their existing rate to a new property, is now a real conversation, with the Trump administration directing federal housing regulators to examine portability and expanded assumability as tools to ease homeowners’ current rate‑lock problem.

- If rolled out, portability could seriously unlock more move‑up opportunities and make relocations so much easier, but unresolved issues around risk management, pricing, and execution mean we’re more likely to see studies and pilot programs rather than a full‑scale rollout.

Buyer behavior in 2026

- Many analysts describe 2026 as a more ‘normal‑leaning’ market, with buyers gaining leverage as inventory edges higher and national price growth slows to low single digits instead of the rapid run‑ups seen earlier in the decade.

- With budgets still tight in many cities around the country, buyers are expected to act more intentionally: comparing areas more carefully, negotiating inspections and repairs, and moving more selectively rather than diving into every multiple‑offer situation.

Seller expectations and pricing

- Forecasters anticipate 2026 being a reset rather than a downturn, with home values generally drifting higher at a modest pace, supported by solid employment and years of underbuilding, but without sellers calling the shots like they were able to in the pandemic era.

- In that environment, sellers and listing agents will need to be realistic when pricing properties and give more emphasis on condition, strategy, and marketing, instead of assuming every listing will draw instant, above‑asking offers.

Affordability and local dynamics

- Affordability remains a spotlight topic of conversation for 2026, as borrowing costs are still elevated compared to the pre‑pandemic years, and many high‑growth, amenity‑rich markets continue to grapple with limited inventory.

- Outcomes are likely to vary widely by location, with local job trends, land‑use rules, and investments in transportation and infrastructure playing an outsized role, particularly in fast‑growing urban areas.

What to expect in Nashville…

For Nashville in 2026, expectations are for a cooler but still fundamentally healthy market: more inventory, slower but positive price growth, and a continued affordability squeeze shaped by jobs and in‑migration.

- Price growth is projected to be modest and sustainable, often in the roughly 2-4% range, rather than the double‑digit jumps seen in the recent boom years.

- Inventory is expected to continue rising, with more options in the urban core and outer suburbs as new construction delivers, leading to slightly longer days on market but still solid demand in desirable areas.

- Affordability remains the pressure point: stabilizing or slightly lower rates should bring some buyers back, but higher prices and continued in‑migration mean many households will still face tough trade‑offs and need to be strategic about neighborhoods, price points, and timing.