The housing market has been through a period of adjustment over the past few years — higher mortgage rates, tight inventory, and affordability challenges have kept many buyers and sellers on the sidelines. As we head into 2026, however, leading housing economists are signaling a shift toward a more balanced and active market.
Here’s what the experts are watching — and what it means for buyers and sellers here in Greater Lansing.
Home Sales Are Expected to Increase
According to Lawrence Yun, Chief Economist for the National Association of REALTORS®, home sales are poised for a meaningful rebound in 2026. Yun projects national home sales could rise by approximately 14%, driven by improving inventory and easing mortgage rates.
What this means locally:
In Lansing, East Lansing, Okemos, Holt, Delta Township, and surrounding areas, more homes coming to market means buyers will have better selection, while sellers may see renewed buyer activity after several slower years.
Home Prices: Steady, Not Soaring
Yun also notes that home price growth is expected to remain modest, roughly 2%–3%, closely tracking inflation rather than the sharp spikes seen earlier this decade.
Local takeaway:
For Greater Lansing homeowners, this supports price stability rather than volatility. Sellers can still benefit from appreciation, while buyers are less likely to face runaway bidding wars.
Inventory Is Improving
Nationally, housing inventory is reported to be about 20% higher than a year ago, giving buyers more choices.
What I’m seeing locally:
We’re experiencing the same trend here — more listings are entering the market, which creates healthier conditions for negotiations, inspections, and thoughtful decision-making.
Affordability Is Slowly Improving
Danielle Hale, Chief Economist at Realtor.com®, highlights affordability as one of the most encouraging trends heading into 2026. Slower price growth combined with slightly lower mortgage rates should help more buyers qualify.
Why this matters in Greater Lansing:
Affordability has always been one of our region’s strengths. As national affordability improves, Lansing-area buyers may find themselves in a stronger relative position compared to larger metro markets.
Mortgage Rates Remain the Wild Card
Nadia Evangelou, Senior Economist at NAR, emphasizes that even a small decline in mortgage rates can have a major impact. A one-percentage-point drop could expand the pool of qualified buyers by millions of households nationwide.
Local impact:
If rates continue to trend downward, we could see pent-up demand re-enter the Greater Lansing market, particularly among first-time buyers and move-up buyers who have been waiting.
What This Means for Buyers and Sellers
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Buyers: More choices, improving affordability, and less pressure than recent years
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Sellers: Steadier demand, realistic pricing, and a more informed buyer pool
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Overall: A healthier, more balanced market — not overheated, but active
My Advice
National headlines don’t always tell the full story. Real estate remains local, and the best decisions are made with local insight. Whether you’re thinking about buying, selling, or simply planning ahead, understanding how these trends apply specifically to Greater Lansing is key.
If you’d like a personalized market update for your neighborhood or price range, I’m always happy to help.
Mike Bowler
Associate Broker | eXp Realty
Serving Greater Lansing — Expect The Best
