As home prices level off in select pockets and sellers adjust to slower traffic, real estate professionals say buyers can still find value this year—if they know where to look. With mortgage rates still elevated and inventory uneven by region, agents describe a market defined by careful pricing, targeted incentives, and quieter competition in specific segments.
The outlook centers on a few themes. Builders are offering concessions on move-in-ready homes. Condos in some city cores are seeing price pressure. Homes that sit for more than a month often invite negotiation. And smaller metros with steady job growth are emerging as the most forgiving for budgets.
Background: A Market Of Mixed Signals
The market has cooled from the fever of pandemic bidding wars. Higher borrowing costs have thinned the pool of buyers, pushing more sellers to weigh price cuts or credits at closing. Inventory has inched up in some areas, though it remains tight in many sunbelt suburbs and school district hotspots.
Agents describe a split picture. Turnkey single-family homes in prime neighborhoods still draw interest. But condos, dated properties, and homes needing repairs face headwinds. This split is shaping where the best deals are likely to appear.
Builder Concessions Gain Ground
New-home builders, especially those with quick move-in inventory, are offering incentives to clear finished product. These include mortgage rate buydowns, closing cost credits, and upgrades such as appliances or landscaping.
The largest discounts tend to show up on homes that have been available for several weeks or that fall between popular floor plans. End-of-quarter periods can also bring extra flexibility as sales teams work to hit targets.
Buyers who price-check a builder’s preferred lender against independent lenders may save twice—once on incentives and again on a better rate or fee structure.
Condos And Urban Cores Under Pressure
Condos in some downtowns and dense inner-ring neighborhoods are facing slower demand. Higher insurance costs and association fees have pushed total monthly costs up, shrinking the buyer pool. Investor restrictions in certain buildings add another layer of friction.
For buyers who plan to live in the unit, this can translate into lower prices or seller credits. Units with older finishes or upcoming assessments often carry the steepest discounts. Shoppers who confirm building finances early and review association documents thoroughly can improve their odds of a safe purchase.
Dated Homes And Longer Listings Invite Negotiation
Agents point to homes that linger beyond 30 to 45 days as fertile ground for negotiation. Stale listings suggest the market has passed on the initial price, and sellers may prefer credits over additional time on the market.
Cosmetic fixes—older carpets, outdated kitchens, worn paint—can create leverage without major structural risk. Buyers who bring contractor bids to the table make a stronger case for price adjustments or repair credits.
Secondary Metros And Affordable Pockets
Pros highlight resilient mid-sized cities and overlooked suburbs where prices never spiked as high and incomes keep pace. These areas often feature a mix of new construction and older stock, giving buyers options at different price points.
Look for submarkets near expanding employers, logistics hubs, or universities. Stable rents and reasonable property taxes can also support values, especially for buyers considering house hacking or future rental potential.
Small Multifamily And Niche Situations
Duplexes and triplexes sometimes trade at discounts compared with single-family homes on a per-unit basis. Owner-occupants can offset costs by renting the second unit. Financing can be more complex, but the income cushion helps in a high-rate environment.
Agents also mention life-event sales—estate, relocation, or divorce-driven listings—where sellers prioritize certainty. These deals demand sensitivity and careful due diligence but can be fairly priced.
Timing, Tactics, And Red Flags
Seasonality still matters. Late winter and midsummer often bring fewer active buyers. Sellers who need to move quickly may show more flexibility then.
- Track price cuts and days on market in your target area.
- Ask for credits in place of list price reductions.
- Use inspection findings to frame specific repair requests.
- Get fully underwritten pre-approval to close faster.
Buyers should watch for hidden costs. Insurance premiums have risen in several states. Some condos face special assessments. Older roofs and systems can change the math if insurance or lenders require replacement.
What The Trends Mean For 2026
If rates ease later in the year, demand could pick up and shrink room for negotiation. If rates stay higher for longer, incentives and price trims will likely persist in softer segments. Either way, the gap between in-demand homes and everything else may widen.
For now, value lives where fewer bidders look: new builds with concessions, condos with careful underwriting, dated homes with fixable flaws, and mid-sized markets with steady jobs. Prepared buyers who move quickly, verify numbers, and negotiate credits stand the best chance at a fair deal.
The bottom line: the market rewards focus and patience. Watch the segments where sellers need certainty, verify total monthly costs, and target listings that have sat. Keep pre-approval current, line up inspectors and contractors, and be ready to say no if the math does not work. The best opportunities this year will favor buyers who pair discipline with speed.
