The midyear update from Realtor.com highlights a cooling housing sector where economic resilience and persistent inflation have offset earlier hopes for lower borrowing costs. Chief economist Danielle Hale notes that the market is currently defined by stability rather than momentum. Sellers are increasingly resetting expectations, providing buyers with more room for negotiation as price growth softens significantly from previous estimates.

Transaction volume remains modest, with total existing-home sales now forecast at 4.10 million for the year. Although this represents a 1% increase over 2025, it marks a downward revision from earlier projections. The impact of geopolitical tensions, particularly in the Middle East, has influenced bond yields and kept mortgage rates elevated, complicating the path toward a recovery. Despite these hurdles, affordability metrics are showing signs of improvement. Monthly mortgage payments are projected to be 1.9% lower than last year, and rental prices are expected to decline by 1.2% as new supply enters the market. The industry is now closely monitoring the growth of private, off-market listings, which could potentially obscure market transparency and alter the competitive landscape for both buyers and sellers.