Real Estate Market Trends to Watch This Spring

Spring is historically the hottest season for real estate, and 2026 is shaping up to be one of the most interesting markets in years. Here's what our data shows.

Inventory Is Finally Rising

After years of historically low supply, new listings are up 18% year-over-year in the top 50 metros. This is great news for buyers who've been competing in bidding wars — more inventory means more choices and less pressure to overbid.

However, inventory is still 22% below pre-pandemic levels nationally. The market is improving for buyers, but it's not a buyer's market yet.

Interest Rates: Stabilizing Around 5.5-6%

After the volatility of the last two years, mortgage rates are settling into a range of 5.5-6% for 30-year fixed. This is higher than the pandemic-era lows but still historically reasonable. For context, the 50-year average is around 7.7%.

Our forecast: rates will stay in this range through Q2, with a possible dip to 5.2-5.5% by late summer if inflation continues to cool.

The Suburbs Are Still Winning

Remote and hybrid work continues to drive demand in suburban and exurban markets. The biggest price appreciation in 2025 was in secondary cities — Boise, Raleigh, Nashville, Tampa, and Austin all saw 8-12% year-over-year gains.

Meanwhile, urban cores in New York, San Francisco, and Chicago are stabilizing but not surging. The premium for city living has permanently narrowed.

The Rental Market Is Tightening

Rents are rising faster than home prices in most markets, up 6.2% nationally. The apartment vacancy rate sits at 4.8%, below the 5.5% equilibrium rate. For landlords, this is an excellent environment. For renters, it reinforces the financial case for buying if you plan to stay put.

Neighborhoods to Watch

Our data team identified the top 10 zip codes with the strongest growth indicators — rising incomes, new infrastructure investment, school district improvements, and commercial development. These neighborhoods are primed for 10-15% appreciation over the next 24 months.

Check our Market Intelligence dashboard for the full list, updated weekly with new data.

What This Means for You

For buyers: don't wait for rates to drop — they may not. Focus on finding the right property and refinance later if rates improve. For sellers: spring is your window. List before May to catch peak demand. For investors: look at secondary markets with strong rental yields and population growth.