Expert Forecasts Point to Affordability Improving in 2026

What to Expect From the Massachusetts Housing Market in 2026

If you’re wondering what the Massachusetts housing market will look like in 2026, you’re not alone. Across Greater Boston, the North Shore, MetroWest, and surrounding areas, affordability has been the biggest challenge for buyers and sellers alike over the past few years. Many people have been waiting on the sidelines, hoping conditions would improve.

The good news? They finally are.

In 2025, affordability reached its best level in about three years, and experts expect that momentum to continue into 2026. That outlook is based on three key factors shaping the Massachusetts real estate market this year: mortgage rates, housing inventory, and home prices.

Mortgage Rates Are Lower Than Last Year — and That Matters

Mortgage rates have already come down from their recent highs, dropping close to a full percentage point over the past year. While that may not sound dramatic, even a small decrease can make a big difference in monthly payments and overall buying power.

Most forecasts suggest rates will hover in the low 6% range throughout 2026. Where they go from here depends on the broader economy, job growth in Massachusetts, and any changes in Federal Reserve policy. What’s important is this: rates are already lower than they were a year ago, which creates more opportunity for buyers and sellers planning a move this year.

For buyers: Lower rates mean more purchasing power and better chances of qualifying for homes that previously felt out of reach.
For sellers: Mortgage rates in the 6% range may be the new normal. If you’re sitting on significant equity — which many Massachusetts homeowners are — moving is still very doable.

More Homes for Sale Across Massachusetts

Inventory improved noticeably in 2025, with more homes hitting the market across the state. Buyers finally regained something they hadn’t had in years: options. More choices also meant more time to decide and more room to negotiate.

That increase in inventory helped slow the rapid price growth we saw earlier, which in turn improved affordability. While inventory growth in 2026 may not be as steep, experts still expect the number of homes for sale to rise again this year.

For buyers: More listings mean more choices and stronger negotiating power.
For sellers: Pricing your home correctly from the start will be critical to attracting serious buyers in a more competitive market.

Home Price Growth Is Slowing — Not Crashing

With more homes available, price growth is easing to a healthier, more sustainable pace. Nationally, experts project modest price increases in 2026 — and Massachusetts is expected to follow that trend, though results will vary by city and town.

Some areas may still see prices rise faster due to limited supply, while others may experience flatter or slightly softer pricing. That’s why local market knowledge matters more than ever.

The key takeaway: prices are not expected to crash. Instead, the market is shifting toward better balance — a welcome change for both buyers and sellers.

For buyers: Expect steadier pricing and fewer bidding wars than in past years, making budgeting more predictable.
For sellers: Slower appreciation helps stabilize the market while protecting the equity you’ve built.

More Homes Are Expected to Sell in 2026

When you combine lower mortgage rates, more inventory, and steadier prices, affordability improves — and that’s exactly why experts expect more homes to sell in 2026 across Massachusetts.

Buyers benefit from more options and breathing room. Sellers benefit from consistent demand and a market that’s no longer overheated.

Bottom Line

Affordability won’t improve overnight, but the trends are moving in the right direction. In 2026, the Massachusetts housing market is shaping up to be more balanced, more predictable, and far less stressful than it’s been in years.

If you’re curious about what these changes mean for your specific city or town, working with a local expert makes all the difference.

Thinking about buying or selling in Massachusetts this year? Let’s talk.