Lynn North's Market Update

The rapid market slowdown of the past six months is predicted to largely level off in 2027.

• Fewer home sales in 2026 compared to 2025. Annual US home price growth to declined only modestly or stayed the same as 2025
• Inventory has lowered due to the economy with the higher cost of living and layoffs due to the AI taking off in the tech sector
• Interest rates to went up into the mid 6% range from mid 5%
• Sellers are weighing the options of renting their homes until market improves to sell it
• First time home buyers are continuing to rent due to the higher costs of living too
• Rents have continued to rise with the higher demand

The market’s balance of power is predicted to shift towards buyers for the first time in years.

• 2026 should have more balanced housing market, since we have had a more challenging economy. Inventory is lower than normal and buyers are more cautious with a higher cost of living! Many have been concerned with layoffs due to AI influx and this has created a market where buyers will appreciate lower prices due to the slower demand this year.
• First-time buyers will stay at the same lower levels, as we saw in the recession, especially with the challenging job market and higher cost of living.
• Buyers aged 55-74 will continue or rise from the record highs post pandemic, due to the need to downsize or move closer to their children and grandchildren from other areas.
• 2027 Spring market will bring an influx of cash when the new AI IPOs stock options are vested (i.e. Anthropic)
• Inventory should go up with more sellers on the market balanced with more first time buyers

Urban living, condos and shared amenities were challenged in 2026 with affordability issues due to the challenging economy.

Lenders have created more stringent criteria for HOA communities, which has created a slower trend of lower inventory and less buyers.

2027 should improve the inventory with the IPO investors’ options maturing, so we can expect more investors, along with first time home buyers who are recent millionaires in the tech sector.

Suburban living is still a strong market for growing families and people wanting to be closer to their offices to mitigate long commutes. Other growing markets are downsizers moving closer to their families from other areas too.