If you've been waiting for the housing market to become a little more predictable, you're certainly not alone.
The first half of 2026 tested everyone's patience. Mortgage rates stayed higher than most buyers hoped. Affordability remained challenging. Add in inflation concerns and global uncertainty, and it's easy to understand why so many people decided to wait.
The question I'm hearing almost every day is:
"Will things get better during the second half of the year?"
Nobody can predict the future with certainty, but several encouraging trends suggest the market could become much more favorable over the coming months.
Here's what I'm watching.
Mortgage Rates May Finally Begin Moving Lower
Mortgage rates have been the biggest obstacle for many buyers over the past couple of years.
One of the primary reasons they've remained elevated is persistent inflation. Energy prices play an important role in inflation, and recently we've seen oil prices begin moving lower after earlier spikes.
Historically, mortgage rates and oil prices have often moved in the same general direction. While it's never a perfect relationship, lower energy costs can help reduce inflationary pressure, which may eventually allow mortgage rates to ease.
No one knows exactly when rates will come down or how much they'll improve. But if inflation continues cooling and economic conditions stabilize, the second half of 2026 could finally bring some relief for buyers.
That would be welcome news for anyone who's been sitting on the sidelines waiting for better affordability.
Home Prices Are Still Expected to Rise
Many buyers are still hoping for a significant drop in home prices.
The reality is that most economists simply aren't forecasting that.
While every local market is different—and some areas have experienced modest price declines—the national outlook continues to call for home values to increase this year.
Current forecasts project average home price appreciation of approximately 2.3% during 2026.
That's not the rapid appreciation we experienced a few years ago, and honestly, that's a good thing. A slower, healthier pace creates a much more balanced and sustainable market for both buyers and sellers.
Inventory has improved compared to recent years, giving buyers more choices. But if mortgage rates begin to decline, many buyers who've been waiting could re-enter the market. Increased demand combined with inventory that's no longer growing as quickly could put modest upward pressure on prices.
The takeaway?
Waiting may not lead to lower home prices. In fact, if rates improve, increased competition could make homes more expensive later than they are today.
More Buyers and Sellers Could Return to the Market
If the housing market has felt unusually quiet this year, you're not imagining it.
Many people still want to move. They simply haven't liked the current combination of higher mortgage rates, affordability challenges, and economic uncertainty.
There's a tremendous amount of pent-up demand.
If borrowing costs improve even modestly, many of those buyers and sellers could finally decide it's time to move forward.
Housing economists continue to forecast stronger sales activity during the second half of 2026 than we saw during the first half of the year. That doesn't mean we'll return to the frenzy of 2021, but it does suggest the market could become noticeably more active.
For buyers, that may mean more competition.
For sellers, it could mean a larger pool of qualified buyers looking for the right home.
What This Means for Buyers
If you're planning to buy a home this year, don't assume waiting automatically gives you the advantage.
If mortgage rates decline, your monthly payment could improve. But there's also a good chance you'll be competing with more buyers, and home prices may continue their gradual climb.
Sometimes buying before everyone else jumps back into the market can actually work in your favor.
What This Means for Sellers
If you've been hesitant about listing your home, there are reasons to be optimistic.
Home values have remained remarkably resilient, and forecasts continue to call for additional appreciation this year. If buyer activity increases during the second half of 2026, you may have more qualified buyers looking at your home than you've seen recently.
Proper pricing and strong marketing remain critical, but the outlook appears more encouraging than it did just a few months ago.
The Bottom Line
While no one can predict exactly what will happen, the second half of 2026 appears to be shaping up better than the first.
Mortgage rates may finally begin easing.
Buyer activity is expected to increase.
Home prices are still projected to appreciate at a healthy, sustainable pace.
Every market is local, though. National headlines only tell part of the story.
If you're thinking about buying or selling in Parker, Castle Rock, Elizabeth, Franktown, Highlands Ranch, Aurora, or anywhere in the southeast Denver metro area, I'd be happy to explain what's happening in your neighborhood and how these national trends may affect your plans.
Sometimes a short conversation can help you make a much more confident decision.