Planning for a Stronger 2026 in Real Estate

2025 was a tougher year for real estate, but it gave agents a clearer picture of what clients want and how the market is shifting. These lessons can help you plan smarter and take advantage of the new opportunities coming in 2026.

By Christian Hill 15 min read
Planning for a Stronger 2026 in Real Estate

**Sources (with links) used for this article are compiled at the bottom. These sources would also be good for further reading/research into the topic.

Real estate agents are reflecting on the lessons of 2025 to plan for a stronger year ahead in 2026. The past year was a challenging one for the housing market, but it also taught us some valuable lessons. Now, as we head into 2026, those insights can help real estate agents prepare and adapt for what’s next in the residential market.

2025 Was a Tough Year, But Full of Lessons

2025 tested even the most experienced real estate professionals. Home sales fell to historic lows as high mortgage rates and hesitant sellers slowed the market to a crawl. Homes weren’t flying off the shelf like in 2021.

Many owners sat tight rather than give up their ultra-low interest rates, so there were fewer listings. Buyers, for their part, had to grapple with both high prices and high financing costs. In short, it was a slower, more complex market than we’d seen in years.

Yet through these challenges, agents learned what really works when the going gets tough. Here are some of the biggest lessons real estate agents took away from 2025.

Relationships and trust mattered more than quick deals

In a thin market, the agents who thrived were the ones who stayed in touch and put their clients first. They communicated consistently, strengthened their personal brands, and focused on building trust – not just chasing transactions.

We saw that real estate is becoming less about one-off deals and more about being a trusted advisor to clients. Buyers and sellers in 2025 wanted an agent they could rely on for guidance, not just someone to unlock a door and collect a commission.

Older, repeat buyers dominated the market

First-time buyers nearly disappeared in 2025 – they made up only about 21% of home purchases, an all-time low (normally it’s closer to 40%). Those who did buy their first home were older than ever (around 40 years old on average).

Meanwhile, repeat buyers (especially Baby Boomers) took center stage, often using cash or large equity from their previous homes to purchase new properties. In fact, the typical home buyer now is almost 60 years old, which is a big shift from past decades.

This demographic shake-up taught us the importance of adapting to clients’ life stages. Agents found they might be helping a thirty-something renter one moment and a retiring couple the next. Flexibility and empathy for different needs became key.

Buyers prioritized lifestyle and value over size

Not everyone is chasing the biggest house anymore. In 2025, smaller, more affordable homes saw strong demand. With budgets tight (and family sizes shrinking), many buyers decided they didn’t need a McMansion – they just wanted a comfortable, cost-effective place to live. “People will buy what they can afford,” as one market observer noted, and clean, modest homes sold quickly, especially if they offered decent cash flow potential for investors.

At the same time, home features and lifestyle perks grew in importance. Today’s buyers – especially at the higher end – care about things like wellness amenities, energy efficiency, and smart-home technology.

If a listing’s marketing only touted square footage and granite countertops, it didn’t stand out. 2025 taught agents to highlight how a home fits a buyer’s lifestyle (quiet home office space, solar panels to save on bills, a walkable neighborhood, etc.) rather than just the basic stats.

The frenzy cooled off (and pricing got real)

After the wild seller’s market of 2020–2021, 2025 felt almost calm. Homes stayed on the market longer, and bidding wars were the exception, not the rule. In many areas prices barely budged – nationally, home values were roughly flat, rising only around 1–2% year-over-year.

Some formerly hot markets even saw slight price declines. Buyers had a bit more leverage with more listings to choose from, so they could afford to be pickier. This meant sellers had to price their homes realistically and sometimes even make price reductions to get a sale. (Agents saw plenty of cases where an overpriced listing languished for weeks until the seller cut the price.)

The deal process itself also slowed down. With so many owners “locked in” by low mortgage rates, moving became less attractive, keeping inventory tight and transactions sluggish.

The upside is that the market overall became more stable and balanced – more of a normal pace where negotiation and patience are back in play. For agents, 2025 reinforced the need for strong pricing strategies and managing client expectations.

It was a reminder that homes don’t sell overnight at whatever price we dream up. You have to do the homework, study the comps, and sometimes have the tough conversation with a seller about lowering the price.

In short, 2025 reminded us to get “back to basics” and focus on fundamentals. It weeded out the easy-money speculators and showed that success in real estate still comes down to skill, service, and strategy. These lessons set the stage for a better 2026.

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Looking Ahead... What’s in Store for 2026?

After a bumpy 2025, there’s good reason for real estate agents to feel cautiously optimistic about 2026. The National Association of Realtors (NAR) is actually predicting a bit of a comeback in the housing market.

2026 Forecast

According to NAR’s chief economist, existing-home sales could jump by around 14% in 2026, following 2025’s stagnant sales levels. They expect home prices to keep rising (about a 4% gain nationally in the next year) – in other words, no price crash on the horizon.

This rebound outlook is based on a few things going right: mortgage rates easing down slightly (averaging roughly 6% in 2026 instead of the ~6.7% we saw in 2025), continued job growth fueling buyer demand, and the overall economy stabilizing.

Even a small drop in interest rates can improve affordability and bring some sidelined buyers back into the market. We’re already seeing hints of this – mortgage applications started ticking up toward the end of 2025 as rates dipped from their peaks.

Market Fundamentals

Importantly, the underlying market fundamentals are still solid. Unlike the 2008 era, we don’t have a bunch of risky loans about to default or an oversupply of homes. In fact, mortgage delinquencies are at historical lows, and many homeowners have significant equity built up.

That equity acts as a safety net, preventing foreclosures, even if economic times get tough. So the risk of a sudden flood of distressed sales (that could tank prices) remains very low. Most owners who bought in recent years locked in ultra-low rates and have comfortable payments.

They’re not under pressure to sell at a loss. This means home prices are expected to hold firm or keep climbing modestly in 2026, rather than see any major declines.

Uneven Recovery

That said, the 2026 recovery might be uneven across different segments of the market. The “haves and have-nots” dynamic we saw in 2025 could continue. Higher-end and luxury home sales may lead the way, since affluent buyers aren’t as rate-sensitive and there’s more inventory available in those price ranges.

In fact, NAR data shows the $750k–$1M segment saw some of the biggest activity lately. Meanwhile, the entry-level market – homes for first-time buyers – may take longer to heat up because inventory there is still very tight.

A lot of younger buyers will continue struggling with affordability, even if rates dip a bit. Inventory is the wildcard: builders are ramping up new construction in some areas, which will help, but we have years of under-building to make up for. Don’t expect a flood of starter homes to hit the market overnight.

We should also keep an eye on some new rules and trends that could shape 2026. One big change at the end of 2025 is that Fannie Mae removed its hard 620 minimum credit score requirement for loan approvals. In plain English, this means buyers with less-than-perfect credit (scores under 620) have a better chance of getting a mortgage now, as long as other aspects of their finances are solid. This change could open the door for more first-time buyers who were previously shut out – an encouraging sign for 2026’s buyer pool.

There’s also talk of creative ideas like “mortgage portability” – allowing homeowners to carry their low interest rate to a new house if they move. With roughly 70% of homeowners sitting on rates below 4% from the past, this policy (if it becomes reality) could be a game-changer, unlocking more move-up inventory that’s been frozen by rate lock-in. We might even see 50-year mortgage loans being offered more widely.

Extending the loan term is another way to lower monthly payments and help squeezed buyers qualify, though of course they’d be paying for a long time. These kinds of shifts – longer loan terms, portable rates, looser credit score requirements – are all aimed at improving affordability and mobility in the market. As an agent, it’s worth staying informed about these developments, since they can create new opportunities. (You’ll want to be ready to explain to clients what a 50-year loan means, or how they might take advantage of updated lending rules.)

Bottom Line

2026 is poised to be better than 2025. Most experts expect more sales activity and a bit of relief on interest rates, which is great news. Home prices should keep trending up gradually, which keeps seller confidence up. We likely won’t return to the crazy frenzy of a couple of years ago, and frankly, that’s a good thing.

A healthy housing market is one with steady, sustainable growth, not wild spikes. All signs point to 2026 being a step in that healthier direction. Now the question is, how can you, as a real estate agent, make the most of it?

🧤 Warm Up Your December 🧤

Your Alt Text

December is here, the temps are dropping, and it’s officially cozy-season. If you’re planning to knock out your CE before the year wraps up, this is the perfect moment. Our Winter Warmup Sale is back — enjoy 20% off all real estate and mortgage CE courses with code GLOVES through December 13. Get your CE done now, then settle back into holiday mode with one less thing to think about.

❄️ Warm Up Your CE — Save 20% Today!

Offer valid through December 13. Use promo code GLOVES at checkout.

Using 2025’s Lessons to Succeed in 2026

Knowing the lay of the land is one thing; acting on it is another. The agents who will thrive in 2026 are those who take the lessons of 2025 to heart and adjust their business strategies accordingly. It’s not about working more hours — it’s about working smarter with a clear plan. As you set your goals for the new year, here are some planning tips and strategies to consider...

Take a hard look back before you plan ahead

Before you charge into 2026, set aside a little time to review your 2025 business in detail. Which client relationships brought you the most referrals or repeat business? Which deals were the most hassle for the least reward? Which marketing efforts actually generated leads, and which ones fell flat? Write down what worked and what didn’t.

This honest audit is gold for planning your next steps. For example, if you discover that you got five closings last year directly from personal referrals, you know nurturing your past clients and sphere should be a top priority. If that fancy Zillow ad spend or Facebook campaign didn’t bring any tangible leads, maybe it’s time to reallocate those dollars elsewhere.

The idea is to base your 2026 game plan on real evidence from your 2025 results. Don’t just guess – use your own data. This way, you double down on what works for you and cut out what doesn’t. It’s a much smarter approach than blindly doing more of everything.

Embrace technology to work smarter (but keep the human touch)

One clear takeaway from the past year is that tech-savvy agents had an edge. Tools like virtual home tour software, video calls, digital transaction platforms, and AI-driven CRMs can save you time and make life easier for clients. In fact, over half of agents are now using AI-powered tools in some form, whether to help price homes or to automate follow-ups.

If you haven’t already, explore how you can leverage technology in 2026 to elevate your service. For example, you might use an AI-based program to match buyers with listings that fit their criteria, or use data insights to advise sellers on pricing. Just remember: the goal of these tools is to enhance your service, not replace your personal touch.

Clients still want a real human advisor, not a robot. So yes, use that automated email drip or scheduling app – just make sure you’re customizing it and communicating in a warm, personal way. Think of tech as your assistant that handles the busywork and analysis, giving you more time to spend on what you do best: building relationships and closing deals.

Tailor your approach for different clients and generations

Given the diverse mix of buyers and sellers out there, a one-size-fits-all strategy won’t cut it. A first-time buyer in their 30s will need hand-holding on the mortgage process and might prefer texting and Zoom meetings. A downsizing retiree in their 60s might value in-person meetings and have concerns about things like single-story living or proximity to grandkids. Make it a point in 2026 to truly understand your client’s perspective – their life stage, tech comfort, and priorities – and adjust your style accordingly.

Ask questions and listen. If your buyer is a 40-year-old finally buying their first home, recognize they may be nervous and overloaded with information; be patient and guide them step by step. If your client is an older repeat buyer, respect the knowledge they’ve accumulated and focus on how you can make their transition (maybe from a long-time family home to a smaller condo) as smooth as possible.

Little touches, like accommodating their communication preferences or educating them on relevant issues (for instance, explaining school districts to a young family, or explaining HOA rules to a retiree), can go a long way. Personalizing your service builds trust, and trust builds business.

Strengthen your relationships and partnerships

In a people-business like real estate, your network is everything – and that became crystal clear in 2025. Make 2026 the year you really invest in your relationships, both with past clients and with other professionals. Stay in touch with your sphere: send market updates, check in with a friendly call or a coffee invite, and be genuinely helpful (not just “Hi, any referrals for me?”).

The goal is to stay top-of-mind in a positive way, so when someone is ready to move or hears of someone who is, you’re the one they recommend. Referrals and repeat clients are likely to remain your bread and butter in a market where people value agents they can trust.

Also, consider building strategic partnerships with local businesses and fellow professionals. 2025 showed that we’re stronger together. If you’re not already buddy-buddy with a great mortgage loan officer (MLO), make that connection – a trusted lender partner can help your buyers get creative with financing and will send clients your way in return.

Likewise, team up with home stagers, photographers, contractors, or interior designers in your area. By collaborating (maybe co-host a homebuying seminar or a neighborhood open house event), you expand your reach and offer more value to your clients.

Even less obvious partnerships – like with a local moving company, or a “green home” consultant – can differentiate you. The idea is to create a referral ecosystem: you refer clients to reliable pros, and they refer clients back to you. Everyone wins, especially the client who gets a whole team of trusted helpers.

Real estate is still a relationship business at its core, no matter how much technology evolves. The stronger and wider your network, the more opportunities will flow your way in 2026.

Market smarter, not harder

When it comes to marketing yourself and your listings, 2025 proved that more is not always better – better is better. This year, focus on the marketing channels and messages that actually connect with your audience. Start by analyzing where your leads came from last year (this ties back to that year-end review). If you got zero results from that expensive online lead service, maybe cut it. If you got great leads from hosting first-time buyer workshops or from your Instagram posts, do more of those. Put your energy where the ROI is.

Online, maintain an active presence where your clients hang out, but keep it authentic. Post useful, local content on Facebook or LinkedIn if that’s where your sphere is; or maybe short video tours and tips on Instagram/TikTok if you’re targeting younger buyers. Highlight what makes you different – your expertise in your market, your success stories, your community involvement.

For listings, continue the shift in marketing focus from just specs to lifestyle. Buyers in 2026 will respond if you paint a picture of what it’s like to live in the home and community. So, mention the cozy fireplace and fenced yard for the dog, not just the square footage and year built. Use plenty of visuals like professional photos, 3D tours, even drone shots if it’s relevant. And don’t overlook traditional methods that still work. In some communities, a well-done postcard or neighborhood newsletter can still generate calls.

The key is to be intentional and track results. Don’t throw money at every new shiny marketing object; pick a few tactics and do them consistently and well. By mid-year, evaluate and tweak as needed. Marketing with a plan (and a personality) will beat aimless advertising every time.

Be the educator and advisor your clients need

As the market picks up in 2026, buyers and sellers will be hungry for guidance. This is your chance to truly shine as an advisor. Make sure you’re up-to-date on the latest market stats, trends, and programs so you can educate your clients and help them make informed decisions.

For example, be ready to explain what a 6% mortgage rate means for a buyer’s budget compared to 7%, or how that new credit score policy might let a borderline buyer get a conventional loan. If home prices are expected to rise slowly, coach your buyers on why waiting might cost more later, or conversely, reassure your sellers that they don’t need to panic-sell. Host a webinar or homebuyer class to share your knowledge (this doubles as great marketing). The more value you provide in terms of insights and honest advice, the more clients will trust you with their business and referrals.

Also, double down on honesty and transparency. If the best move for a client is to wait a bit or consider a different strategy, tell them. They’ll remember that you put their interests first. In 2025, clients gravitated to agents who were straight shooters and knowledgeable advisors, not slick salespeople. Continue that in 2026. Be the agent who will talk a first-time buyer through budgeting and credit tips, or who will help a seller decide on a smart pre-listing renovation. When you guide clients through big decisions with empathy and expertise, you build relationships for life. That pays off far beyond a single transaction.

Stay adaptable and positive

Finally, keep the mindset that served you well in 2025: flexibility and optimism. The only constant in real estate is change – we learned that yet again last year. There may be surprises in 2026 (interest rates could fluctuate, the economy could shift, who knows). But if you stay adaptable, you’ll handle whatever comes. Have contingency plans; if Plan A (say, the spring market) is slower than expected, be ready with Plan B (maybe ramp up an autumn marketing push).

Keep learning new skills, whether it’s mastering a new tech tool or taking a course on real estate investing to broaden your expertise. And crucially, maintain a positive, proactive attitude with your clients and colleagues. Buyers and sellers pick up on your energy. If you’re confident and upbeat about the opportunities ahead, it reassures them, too.

2025 was a reality check that real estate isn’t an easy money gig – it’s a profession where you earn success through knowledge, effort, and resilience. By carrying those hard-won lessons forward, you can make 2026 one of your best years yet.

TLDR...

Looking back, 2025 might have felt like a bit of a grind, but it taught us what it takes to succeed when the market isn’t doing all the work for us. Those lessons – focusing on relationships, staying adaptable, honing our craft – are exactly what will set you up for success in 2026.

The housing landscape is improving, and there’s real reason to be excited for the year ahead. More people will be looking to make moves, and they’ll need skilled, trustworthy agents to help them navigate the process. By planning thoughtfully and keeping a client-first mindset, you’ll be ready to seize the opportunities 2026 brings.

So take a deep breath, shake off the challenges of last year, and step into 2026 with confidence. Use what you’ve learned to work smarter and serve your clients even better. This could be a breakout year for your business. Here’s to turning the page and seeing your dedication pay off in the months ahead!

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