The ideal time to buy a home is usually toward the end of the year because you’ll face less competition and more homes to choose from. In fact, Realtor.com rated Oct. 12-18 as the best week because of “elevated” inventory and favorable prices.
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That doesn’t mean you should be in a hurry to buy before the new year, however. The decision depends on numerous factors, including your personal financial situation.
Should homebuyers pause their search until 2026? Here’s a look at what real estate experts have to say.
What To Expect in 2026
One reason you might want to hold off until the new year is the chance to get a lower rate on your mortgage.
A September report from Fannie Mae projected that average U.S. mortgage rates would end 2025 at 6.5% and then drop to 6.1% in 2026. Based on this projection, you can expect to get a lower rate by pausing your search until next year.
Depending on where you live, you might also see lower home prices in 2026. A number of once-hot housing markets have seen prices moderate in recent months — including in California, Florida, Texas and North Carolina. Some experts expect these states to see further price declines next year.
But on a national level, prices are expected to keep pushing higher in 2026. During a National Association of Realtors (NAR) summit earlier this year, NAR Chief Economist Lawrence Yun projected that median home prices will rise 4% in 2026 after climbing 3% in 2025.
If you live where prices are going up instead of down, it might make more sense to buy sooner rather than later.
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Should You Pause Your Search Until 2026?
Again, the answer to this question depends on your personal situation. But as a general rule, many experts advise against it. One of them is Jeff Lichtenstein, broker and CEO of Florida-based Echo Fine Properties.
“Always, always, always buy at the end of the year,” he told GOBankingRates. “Housing is the one product that takes a pause at the end of the year. Sellers who have been in the market are still exhausted and in ‘must sell’ mode. The competition isn’t there and it gives buyers time to negotiate.”
Another reason he recommends not pausing your search is because home prices don’t usually rise at the rate of inflation during the housing off-season.
“We all know that certain food prices and car repairs are up double digits, but home prices are in reverse,” Lichtenstein said. “Home values have [already] dropped in some cases. I think it’s the most underreported story in consumer purchasing.”
Meanwhile, if you’re waiting for mortgage rates to drop before searching for a home, that might not be the best idea, either, according to Karl Benjamin, Executive Vice President of Third Party Origination at Cardinal Financial.
“A common misconception is that buyers must wait for the ideal combination of lower rates and perfect market conditions before moving forward,” he told GBR. “In reality, a consistent trend we are seeing is that buyers are no longer waiting for perfect timing or the lowest possible rate. They are using strategic loan structures to move forward with confidence. Personal readiness has more impact on long-term outcomes than trying to predict market shifts.”
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This article originally appeared on GOBankingRates.com: Should Homebuyers Pause Their Search Until 2026? What Real Estate Experts Say
