Redfin: The Great Housing Market “Reset” Starts in 2026

BiggerPockets Blog
Published: December 24, 2025
Pricing & Profitability

Summary

According to Redfin, the housing market will "reset" in 2026, leading to improved affordability and a more normalized market. For STR hosts, this may mean a shift in pricing strategies and the need to adjust to potential changes in demand. Stay informed about market trends and be prepared to adapt your approach to maintain cash flow.

Key Insights

  • Redfin predicts a "reset" of the housing market starting in 2026, with improved affordability due to stabilizing mortgage rates and slower home price growth.
  • Home price growth is slowing down due to a shift from a seller's market to a buyer's market, with a higher ratio of sellers to buyers.
  • Mortgage rates are expected to remain stable in the low 6% range, not going into the fives or rising to 7% or higher.

Action Items

  • Monitor local market trends and adjust pricing strategies to align with slower home price growth and potential changes in demand.
    Effort: low
    Impact: medium

Tools & Resources

  • Redfin: Redfin's proprietary metric that we put out that we call active buyers and sellers.

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