While it’s going to vary by area, more metros are slowly shifting to favor buyers, and the market is starting to look a lot more like a two-way street again.

And that balance is something we haven’t had in a while.

For buyers, that can mean more choices and more negotiating power. For sellers, it means pricing, presentation, and strategy matter more than they did just a few years ago.

Whether you’re buying or selling, here’s what you need to know about what’s changing and what it means for your move.

The Most Buyer-Friendly Market in Years

The national data tells an interesting story right now. According to Realtor.com:

“The national housing market is balanced but gradually loosening as the cycle moves in a more buyer-friendly direction . . .”

That’s because, over the past few years, more and more metros have been flipping back to more buyer-friendly terms as inventory’s grown. And when you zoom in on the latest Realtor.com data for the top 50 metro markets over time, the trend becomes really clear (see graph below).

Back in 2021, almost all major metros were seller’s markets. By the end of 2025, only 1 in 3 still favored sellers. That’s an obvious shift.

And that changes how the market is going to feel for everyone. Sellers shouldn’t still expect 2021 conditions, but neither should buyers. At least, not generally speaking.

It’s Not the Same Story Everywhere

That said, who has the power ultimately depends on where you live. While more metros are leaning buyer-friendly lately, there are still plenty of strong seller’s markets right now, too.

It really comes down to how much housing supply and demand there is in your area. And that varies enormously by region.

Sun Belt cities like Austin, Tampa, and San Antonio saw major building booms in recent years, giving buyers more options and more negotiating room. Meanwhile, cities in the Northeast and Midwest – think Rochester, Hartford, and Buffalo – didn’t see that same wave, so inventory stayed tight and competition stayed fierce. As Jeff Ostrowski, Housing Analyst at Bankrate, explains:

“The formerly hot Sun Belt markets have cooled, while the Northeast and Midwest have stayed hot. The big driver here is construction activity. The softest markets now [have] experienced big booms that spurred new building, and that has led to a large supply of new and existing homes on the market in those places.”

Practical Advice for Your Move

To find out who has the power in your local market, talk to an agent. Because knowing what’s happening locally is going to be the key to setting the right strategy for your move.

If the market is working in your favor, great. Lean in and use it to your benefit. But if it’s not, all hope isn’t lost. Your agent can help you figure out how to approach any market.

Here’s some practical advice if there’s a mismatch between your goal and local market conditions.

If you’re buying in a seller’s market:

• Get pre-approved before you start shopping. It shows sellers you’re serious.
• Be ready to act fast when the right home hits the market.
• Consider offering a quick closing date or flexible terms.
• Work closely with your agent to craft a competitive offer.

If you’re selling in a buyer’s market:

• Price it right from day one. Overpricing will cost you time and money.
• Focus on curb appeal and staging to stand out in areas with more inventory.
• Be open to offering incentives, like covering closing costs or a home warranty.
• Expect buyers to negotiate and be ready to be flexible.

Know Your Local Market First

The housing market is becoming more balanced, but that doesn’t mean every buyer or seller has the same opportunities. Local inventory levels, buyer demand, and pricing trends still play a major role in who has the advantage.

That’s why understanding your local market is more important than following national headlines. The right strategy can help buyers negotiate with confidence and help sellers attract serious offers, regardless of market conditions.

If you’re planning a move, knowing whether your area favors buyers or sellers can help you make smarter decisions and avoid costly mistakes.

The post Is It Still a Seller’s Market? Here’s What the Data Says appeared first on KM Realty Group LLC.

• Some believe a crash is coming and they’ll get a better deal if they hold off.
• Others worry they’ll buy now and watch their home’s value fall later.

And nobody wants to overpay or buy right before values drop. But here’s the question worth asking:

What if the crash you’re waiting for isn’t actually coming?

Because that’s what the latest data suggests.

Experts Are Not Calling for a Crash

If you’ve spent any time online lately, you’ve seen posts claiming home prices are about to come crashing down. And it’s true that some markets are seeing small price declines right now.

But that’s not the same thing as a nationwide crash.

While some places are going through a price adjustment, Realtor.com data shows home prices are still rising in 71% of housing markets across the country.

The trouble is, since negative news sells, you’re seeing more coverage about how a handful of markets are seeing declines, than how the majority are still seeing prices rise. And that’s unfortunate.

It’s exactly why a lot of buyers end up with the impression that prices are falling everywhere when they’re not. So how do you really know where prices are really headed from here?

That’s where the Home Price Expectations Survey (HPES) from Fannie Mae comes in.

Home Prices Will Rise for the Next 5 Years

Every quarter, more than 100 economists, housing experts, and market analysts are asked where they think home prices are headed based on the latest data available.

And despite all the uncertainty in today’s market, there’s one thing they largely agreed on:

They don’t think a crash is coming.

In fact, the average of all of their forecasts calls for home prices to rise every year for at least the next 5 years (see graph below):

The point is that the overwhelming expectation isn’t for prices to fall. It’s for prices to rise at a more normal pace. And just in case you’re looking at the forecasts and saying: “of course they’d say that” – know that this survey doesn’t just include optimists. It includes pessimists too.

Even the Pessimists Aren’t Predicting a Crash

Researchers broke the panel into groups based on how bullish or bearish they were about housing. The result? Even the most pessimistic group still expects home prices to climb over the next five years.

Optimists think we’ll see prices go up roughly 4% a year. Pessimists say it’ll be closer to 1%. The reality may be somewhere in the middle.

Think about that for a second. The debate among experts isn’t whether prices will crash. It’s how much they’ll rise.

That’s a very different conversation than the one happening across social media.

This Means Waiting Could Actually Cost You

So, if you’re putting off your move until prices come down, you may be disappointed. According to the experts, a widespread crash isn’t in the cards.

In fact, based on the HPES forecast, a buyer who purchased a $400,000 home this January would gain nearly $40,000 in equity over the next five years from appreciation alone, even in this more moderate market (see below):

Of course, this all depends on local market conditions. This forecast is a national average. But broadly speaking, if the experts are right, the bigger risk isn’t that prices will crash. It may be waiting for a crash that never comes.

Because depending on your market, if you wait, you could be missing out on $40k in equity or paying 40k more in 5 years for the same house.

Learn how long-term appreciation impacts homeowners in our guide to the 5 Rule for Home Prices.

What Waiting Could Mean for Your Homebuying Plans

A lot of buyers are delaying their move because they believe home prices will come down. But according to leading housing experts, that’s not the most likely outcome.

While price growth is expected to be more moderate than it was in recent years, most forecasts still call for home values to rise over time.

Waiting may feel like the safer choice. But if prices continue to appreciate, delaying your purchase could mean paying more for the same home later and missing out on years of potential equity growth.

If you’re trying to decide whether buying now or waiting makes more sense, understanding your local market can help you make a confident decision based on facts instead of headlines.

You can also browse current home listings to see what’s available in today’s market.

The post Think Home Prices Will Crash? Here’s What the Experts Actually Expect. appeared first on KM Realty Group LLC.

No repairs.

No concessions.

No negotiation.

If buyers wanted the house, they pretty much had to take it on the seller’s terms. But now that inventory’s grown, negotiations are becoming a normal part of the process again.

That’s why one of the most important things sellers need to understand right now is this:

The goal isn’t to “win” every negotiation.

Sometimes, it’s worth meeting buyers where they are to get a deal done, fast. One example? Helping with a buyer’s closing costs.

Let’s break that down, so you know what to expect if it comes up in your sale.

What Are Buyer Closing Costs?

Closing costs are the extra expenses buyers pay on top of their down payment when they purchase a home. Freddie Mac gives some examples:

• Loan origination fees
• Appraisal and inspection costs
• Title and attorney fees
• Survey fees and more

Typically, buyer closing costs range from about 2% to 5% of the home’s purchase price. So, on the typical $400,000 home, that could mean anywhere from $8,000 to $20,000 out of pocket.

And in today’s affordability-challenged market, that upfront cash can be a major hurdle for some buyers – even if they can comfortably afford the monthly mortgage payment itself.

That’s why more people are asking sellers for help.

And More Sellers Are Saying “Yes”

According to the latest data from Zillow, 67% of sellers reported paying some or all of the buyer’s closing costs in 2025 (see chart below):

Now, that doesn’t mean every seller is doing it. And it definitely doesn’t mean every seller should. But it does show how common concessions have become as the market has shifted. And that’s important for you to know.

When Paying Closing Costs May Make Sense

This is where many sellers get stuck. They hear “help with closing costs” and immediately think: “Why should I pay for their expenses?”

But that’s not always the right way to look at it. You’ve got to consider who has the leverage in today’s market.

Redfin data shows there are more sellers than buyers active today. And that shifts the market dynamics (see graph below):

That doesn’t mean every market favors buyers. Far from it. In some areas, homes are still selling quickly and sellers have plenty of leverage. But in others, buyers have more room to negotiate than they’ve had in years.

That’s why local market conditions matter so much when you make your decision.

For example, helping with closing costs may be worth considering if:

• There are a lot of homes for sale in your area
• Your house has been sitting on the market longer than expected
• You’ve had showings, but no offers
• You’re motivated to move quickly
• Or you’re trying to keep a deal together during negotiations

After all, if it’s the thing that helps bring a serious buyer across the finish line, it could be well worth it.

Other Concessions You Could Offer Instead

Just remember, being flexible doesn’t mean saying “yes” to every request.  It means understanding which compromises actually help you accomplish your goals. Because there are always alternatives.

Redfin suggests considering other concessions if you’re not interested in helping with closing costs, like:

• A home warranty
• Repair credits
• Flexible closing dates, or
• Leave behind appliances or furniture

The right answer depends on what buyers in your market are asking for and what matters most to you. That’s exactly why working with an experienced local agent is so important.

What Smart Sellers Should Consider Before Negotiating

The most successful sellers today aren’t necessarily the ones who refuse every request—they’re the ones who understand which concessions help them reach their goals faster.

Whether it’s helping with closing costs, offering repair credits, or negotiating other terms, the key is knowing what makes sense based on current market conditions and your priorities.

If you’re thinking about selling and want to understand which concessions buyers are requesting in today’s market — and which ones are worth considering — having a local strategy can make all the difference.

The post Should You Pay for Your Buyer’s Closing Costs? What Sellers Need To Know. appeared first on KM Realty Group LLC.

If you’re wondering whether to move now or wait until later in the year, understanding the seasonal advantages available to both buyers and sellers can help you make a more informed decision.

A lot of people who want to move are telling themselves the same thing: “Maybe I’ll just wait until later this year once things calm down.”

While waiting sounds like a good plan, there’s something worth knowing before you decide. Rates aren’t expected to change much, so if that’s the #1 reason you’re waiting, it may not pay off. And there may be other things you miss out on in the meantime.

Historically, Summer is one of the strongest seasons of the year for both buyers and sellers. And if you delay your move until Fall or Winter, some of those opportunities may already be fading.

Buyers: Fresh Inventory Is Your Real Summer Advantage

One of the biggest frustrations buyers have faced over the past few years has been a lack of affordable options. Maybe you’ve run into that yourself:

• You find a house you like, but it’s out of your budget.
• You find something in your budget, but you don’t like it.
• Or worse, nothing interesting hits the market for weeks.

Historically, Summer helps with that.

Looking at data from the last few years, Summer months consistently bring more sellers into the market than later in the year. And that gives buyers a real window of fresh choices.

According to Realtor.com, any given Summer month typically sees about 32% more fresh options than the average month from September-December.

With more newly listed homes, there’s a better chance of finding one you like where the numbers actually work.

Because all it really takes is one home to completely change your search. And if you’ve got more popping onto the market to choose from, maybe one of those is exactly what you need.

But keep in mind, this seasonal window isn’t open forever. Fresh inventory tends to slow down once Summer ends.

Many homeowners who planned to sell this year have already listed by then. Families who wanted to move before school starts have often already gotten it done, or at least, set it into motion. So, new listing activity usually cools as we head into Fall and Winter.

Of course, every year is different. But if finding the right home at the right price has been your biggest challenge, waiting until later in the year may not necessarily give you more options. In fact, recent history suggests it may do just the opposite.

Sellers: Homes Usually Sell for More in the Summer

If you’re thinking of selling, you may be considering holding off because you’ve seen headlines about lower asking prices, price cuts, and softer conditions in some markets. But those headlines don’t tell the whole story or convey just how much it varies by area.

Here’s what you really need to know. Even though the market’s becoming more balanced and some pockets are experiencing price declines, that doesn’t mean you’ve missed your chance to sell.

Seasonality can still work in your favor no matter where you are. And this Summer could still give you the chance to sell for a good price.

According to the National Association of Realtors (NAR), homes sold during a Summer month usually sell for about 4% more than homes sold during the typical month from September-December:

Why? Summer buyers are usually operating on a set timeframe. They’re trying to move before the next school year or when they have more PTO and warmer weather to tour houses. That urgency can translate into better offers.

Now, that doesn’t mean you should price your house 4% higher this Summer. That would actually be a mistake in today’s market.

It just means if you’re looking to get as much for your house as you reasonably can, a Summer move could be a smarter play than waiting until later this year.

Because based on typical seasonality, you may get more for your house than you would if you waited until the Fall or Winter (when there are typically fewer buyers active).

And if you’re considering a move anyway, that’s worth factoring in.

Make Your Move with Confidence This Summer

If you’re buying a home, this season may offer more choices and opportunities than you’ll find later in the year. And if you’re planning to sell your house, summer demand could help position your property in front of motivated buyers while seasonal conditions remain favorable.

Every market is different, and the best timing depends on your goals, budget, and local conditions. Working with an experienced real estate agent can help you understand current inventory levels, pricing trends, and what opportunities may be available in your area.

Whether you’re thinking about buying a home, selling your house, or simply exploring your options, connect with local real estate professionals for guidance tailored to your situation.

The post Two Big Reasons To Move This Summer appeared first on KM Realty Group LLC.

As inventory grows and market conditions continue to rebalance, buyers may find more realistically priced homes and less competition than they experienced over the past few years.

If affordability has been the biggest thing standing between you and a home, there’s a little good news.

Asking prices have started to come down.

The typical seller listed their house for a median of $429,500 in May. That’s 2.4% lower than a year ago, according to Realtor.com. On its own, that won’t transform what you can afford, but in today’s market every little bit helps and it signals a broader shift taking place.

Buyers Are Finally Catching a Break

Check out this data from Realtor.com and you can see this is the first May in years where buyers have caught any sort of break price-wise.

Each May from 2022-2025, things held pretty steady. But this year? You can see that more noticeable shift in your favor (see graph below):

While the dip from $440,000 to $429,500 isn’t a big one, it gives you more breathing room. And that’s not a small thing when affordability has been this tough.

Now, lower asking prices don’t mean every home is suddenly within your range. But they do show buyers are gaining a little ground.

And in today’s market, a little ground can go a long way.

What That Means for the Housing Market

And just in case this crossed your mind, this is good news for your move, not bad news for the market as a whole.

The subtle dip from last May to this one shows prices are easing, but they’re not dropping off a cliff. What this is actually a sign of is that the market’s rebalancing now that the number of homes for sale has grown.

Buyers have a bit more power again, and sellers know they can’t name just any price and expect their house to sell. They either meet the market where it is, or face a price cut later. And in general, sellers would rather avoid a price cut. As the New York Post explains:

“Rather than swinging for the fences with pandemic-era price tags, sellers are increasingly coming to terms with a new reality. The share of listings featuring price cuts actually fell to 17.5% in May, suggesting homeowners are doing their homework before putting up a “For Sale” sign instead of chasing unrealistic numbers and cutting later.”

This signals a broader change in the market.

Seller expectations have been skewed a little high since the pandemic buying frenzy – you’ve probably felt that firsthand. But now, things are starting to normalize. It could mean less back-and-forth to land on a fair number. And homes should be priced a bit more realistically from the start.

Bottom Line: Talk to a Real Estate Expert Before You Start Your Home Search

Lower asking prices may not solve every affordability challenge, but they are creating new opportunities for buyers who have been waiting on the sidelines. As the market becomes more balanced, understanding local pricing trends can help you make more informed decisions and identify homes that offer the best value.

If you’re buying a home and want guidance on current market conditions, connect with experienced real estate agents who can provide local market insights, explain pricing trends, and help you navigate your options with confidence.

The post Lower Asking Prices Are a Win for Today’s Buyers appeared first on KM Realty Group LLC.

The good news is that finding a more affordable home may not require giving up your goals — it may simply mean expanding your search to include nearby communities or areas you haven’t considered before.

For many buyers, affordable homeownership comes down to balancing home prices, cost of living, and lifestyle priorities. Understanding where opportunities exist can help you make more confident decisions and find a home that fits both your needs and your budget.

Whether you’re dreaming about buying your first home or wondering if it’s time to move on from the one you’re in, affordability is probably weighing on your mind. Home prices are still high in many markets, and even though things have improved a bit over the past year, making the numbers work can still feel like a stretch.

But the people finding ways to move right now usually have one thing in common. They didn’t wait for affordability to come to them. They went looking for it.

According to PODS, 61% of people across all generations say affordability is the biggest factor when deciding where to move. And it’s led a growing number of people to do one thing – broaden their search to include more affordable areas they hadn’t seriously considered before.

As PODS, put it:

“. . . moving is increasingly driven by affordability, connection, and quality of life. As economic pressures persist, Americans are taking a more intentional, values-driven approach to where they choose to live.”

It’s Not Just the Home Price – It’s the Whole Cost of Living

Here’s where it gets really interesting. When people talk about moving for affordability, they’re not just talking about finding a cheaper house. They’re thinking about the full picture. What does it actually cost to live somewhere?

WalletHub looked at exactly this, measuring housing costs as a share of median monthly household income across every state (see map below).

Take a look at where you live on that map. The lighter the blue, the more affordable it generally is to live there. The darker the blue? Just the opposite.

If your state is showing up on the darker blue end of the scale, the cost of living may be putting a real pinch on your wallet, and it may be worth exploring what a lighter-blue area could mean for your finances.

Because if you’re less financially stretched, imagine how that could change things. Less stress. Less worry. More freedom and peace of mind.

You Don’t Have To Move to Another State To Find a Better Deal

But finding more affordable homeownership doesn’t have to mean a cross-country move. It doesn’t even have to mean leaving your state, your family, or your favorite coffee shop behind.

Every market has more affordable pockets that most buyers never think to explore, including communities with more affordable condo options – neighborhoods, towns, and communities where home prices are lower, property taxes are more manageable, and the overall cost of living just works better.

A great local real estate agent knows exactly where those places are.

And if you work remotely, or have any flexibility in where you’re based, your options open up even further. Remote work has already changed the way millions of people think about where to live, and that trend isn’t going away.

When location stops being tied to a daily commute, a more affordable area that’s a bit farther out suddenly becomes a very real option.

Explore Affordable Homeownership Options with Local Real Estate Experts

Affordability remains one of the biggest challenges for buyers today, but it doesn’t always mean putting your plans on hold. Sometimes the best opportunities can be found in nearby neighborhoods, surrounding communities, or areas with a lower overall cost of living.

Whether you’re buying your first home, planning a move, or exploring more affordable homeownership options, experienced real estate agents can help you compare locations, understand local market trends, and identify opportunities that align with your budget and long-term goals.

If you’re ready to explore affordable areas and find out what options may be available in today’s market, connect with a local real estate expert for personalized guidance.

The post Could Moving a Bit Further Out Change Everything About Your Budget? appeared first on KM Realty Group LLC.

While recent inflation reports have raised concerns, understanding what these changes mean can help you make smarter real estate decisions. Here’s what rising inflation could mean for mortgage rates, the housing market, and your plans moving forward.

Data shows inflation is moving in the wrong direction. But before the headlines send anyone into a panic, here’s what’s actually going on, why it matters for the housing market, and what it means if you’re thinking about buying or selling.

Inflation Went Up – Here’s What That Actually Means

The government tracks inflation in a variety of ways. One is something called PCE – the Personal Consumption Expenditures Price Index. It measures how much more (or less) people are paying for goods and services compared to a year ago. And just based on your own expenses, you can probably guess which way that’s trending.

That’s the one everyone is talking about right now. Check out the yellow line to see how that’s spiked since February (see graph below). A big driver of this jump is the ongoing conflict in the Middle East, which has pushed gas and energy prices significantly higher.

The relationship between inflation and mortgage rates is one of the key factors influencing housing affordability and buyer activity in today’s market.

Now, you may have noticed there’s a second line. The blue line shows core PCE. That’s the same measure, but with gas and energy prices stripped out. The Federal Reserve (the Fed) actually watches this number most closely because energy prices swing around a lot and can be misleading.

And here’s the somewhat encouraging part.

Core PCE is rising, but not nearly as fast as the overall number. That suggests a good chunk of the inflation spike we’re seeing right now is tied directly to what’s happening overseas. So, when that situation settles down, inflation may settle a bit, too.

Why This Matters for Mortgage Rates

Here’s the housing connection. When inflation is high, the Fed tends to keep the Federal Funds Rate elevated or even raise it to try to taper spending and cool inflation back down. And while it’s not a one-for-one relationship, that Federal Funds Rate can have an impact on your mortgage rate when you buy.

Right now, based on the information we have, there’s roughly a 50/50 chance the Fed actually raises the Federal Funds Rate before the end of 2026, according to CME FedWatch (see graph below):

While it’s too soon to say where this goes for certain and if we’re headed for a rate hike, it does mean mortgage rates are probably not coming down as soon as most people were hoping.

If you’ve been waiting for rates to drop significantly before making a move, this report is a reminder that “higher for longer” is still very much on the table. It really all depends on where the economy goes from here. According to Bankrate:

“Oil prices and bond yields have dropped a bit . . . but they’re still way up compared to the start of spring. Until there’s a resolution to the war, look for both inflation and mortgage rates to stay high.”

But This Is Not 2008 – Not Even Close

Just remember, a tough economy does not equal a housing crash. The conditions today are very different from what led to the 2008 collapse. Here’s why:

• Inventory is still relatively low. There’s no flood of homes hitting the market.
• Most homeowners today have strong equity in their homes.
• Lending standards are far stricter than they were before 2008.
• Today’s challenge is affordability, not a wave of distressed underwater sellers.

Uncomfortable and unhealthy are not the same thing. The market feels hard right now, but “hard” and “crashing” are very different.

You Still Have Options. Here’s What To Do.

High rates don’t mean homeownership is out of reach. It just means the path looks a little different. There are real strategies that can help, depending on your situation:

• Ask your lender about different loan options. Adjustable-rate mortgages (ARMs) or rate buydowns may help lower your monthly payment in the short term.
• Explore first-time buyer programs, down payment assistance, or seller concessions that could help offset costs.
• Stay in close touch with a trusted agent and lender. When rates shift, and they will, you’ll want to be ready to move fast.

The right strategy, tailored to your goals, matters a lot more than waiting for the perfect moment that may never come.

Talk to a Real Estate Expert About Your Next Move

Rising inflation and higher mortgage rates can make the housing market feel uncertain, but that doesn’t mean your goals need to be put on hold. Whether you’re buying a home, planning to sell your house, or exploring your financing options, having the right strategy is more important than trying to predict every market shift.

Before making a move, connect with experienced real estate agents who understand current market conditions and can provide local market guidance based on your specific situation. The right advice can help you navigate affordability challenges and make confident decisions no matter where mortgage rates go next.

The post What Rising Inflation Means for Your Move appeared first on KM Realty Group LLC.

While forecasts for 2026 have changed since the start of the year, experts still expect opportunities for those buying a home or planning to sell. Understanding what has changed can help you make more confident decisions in today’s market.

If the housing market feels confusing right now, you’re not alone.

Mortgage rates have risen. Home sales haven’t picked up like expected. And many buyers and sellers are wondering when things are going to feel easier or be more affordable.

The truth is: a lot changed over the first half of this year.

The latest 2026 housing market forecast shows mortgage rates, home sales, and home price expectations have shifted compared to what experts projected at the end of last year.

Back at the end of 2025, economists were forecasting a much stronger housing market for 2026. They expected mortgage rates to come down, affordability to improve more dramatically, and home sales to rebound.

But lingering inflation, economic uncertainty, and growing geopolitical tensions overseas pushed mortgage rates higher than expected. And because rates stayed elevated for longer, many buyers continued to hold off.

That’s why experts recently revised their housing forecasts for the rest of the year (see graph below):

So, what does this actually mean for you? Let’s break it down.

Mortgage Rates May Remain Elevated

While just about everyone wants mortgage rates to go back to the uppers 5s or low 6s we saw at the start of the year, as of right now, the experts don’t think that’s likely to happen this year.

Instead, forecasts have been updated from the low 6s they originally projected. Many industry organizations are saying rates will stay in roughly the mid 6s this year. The good news is, that’s still lower than rates were a year ago.

Of course, this is based on what we know today. If the conflict overseas comes to an end or inflation drops, this could change. But if you’re waiting for lower rates, it may not pay off in the way you expect.

Existing Home Sales Revised Lower

Back in late 2025, experts expected we’d sell an average of 4.5 million homes this year. Now? That’s dropped down a bit to 4.2 million.

That tells us something important: buyers are still hesitant because affordability remains challenging.

Higher mortgage rates have made monthly payments harder to manage, especially for first-time buyers. And that’s slowed the pace of the market compared to what was originally expected. But even though the forecast was revised down, we’re still expected to sell more homes than last year.

Once geopolitical tensions resolve and rates begin to settle down, many experts believe that group of buyers will be ready to jump back in. As Lawrence Yun, Chief Economist at NAR, explains:

“There is sizable pent-up demand that could be released into the market.”

There has already been a few glimmers of renewed hope lately. In recent months, pending home sales have been improving month-over-month despite higher rates.

So, if you’re able to afford a home at today’s rates, it could still make sense to buy now. Because otherwise, if you wait, you’ll have more competition (and potentially fewer homes to choose from) when those other buyers jump back in.

New Home Sales Also Slowed

Builders also expected to have a stronger year. Earlier forecasts projected new home sales would top 700k in 2026. Now, economists expect we’ll be just shy of that number.

Again, mortgage rates are a major reason why.

But the upside for buyers is that builders may be even more motivated to sell. That means builder incentives, negotiation opportunities, and pricing flexibility may continue in many markets. So, if you live somewhere where there’s more new construction, this may actually be a bright spot for you.

Builders could be more ready to negotiate, and that gives you more leverage to get a better deal. This is especially true if you’re considering new construction.

Home Prices Are Still Expected To Rise

This is one of the most important takeaways from the entire forecast. Even though sales activity is slower, on average, experts did not revise their home price forecast downward.

They still expect prices to rise nationally this year.

Why? Because while buyer demand has softened, the number of homes for sale is still relatively limited overall. That imbalance is helping support prices, even in a slower market.

Of course, conditions vary depending on where you live. Some markets are cooling more than others. But nationally, experts are still projecting steady price growth — not a major decline. And that should be a comfort whether you’re buying or selling.

Because sellers don’t want a major drop in prices. And while buyers may think they do, generally you feel better about a big purchase when it doesn’t depreciate right away.

Bottom Line: Talk to a Local Real Estate Expert About Your Next Move

While housing market forecasts have been adjusted, the bigger picture remains the same: people are still buying a home, selling their house, and making moves based on their goals and life changes. Understanding how mortgage rates, inventory levels, and buyer demand may affect your plans can help you make more informed decisions.

Whether you’re thinking about buying a home, preparing to sell your house, or simply trying to understand current market conditions, connect with experienced real estate agents who can provide local market guidance and help you navigate your options with confidence.

If you want to know what’s happening in our local housing market, and what it could mean for your plans for the rest of this year, let’s connect.

The post The Mid-Year Housing Market Update: Why Forecasts Changed in 2026 appeared first on KM Realty Group LLC.

If you’re buying a home today, you’ve probably noticed that affordability challenges are influencing what buyers can realistically purchase. While a smaller home may not have been part of your original plan, it could offer more value, lower costs, and less maintenance than you expected.

From newly built homes with modern features to affordable condos in desirable communities, many buyers are discovering that less square footage doesn’t always mean sacrificing comfort or lifestyle.

You started shopping with a specific mental image of your future home in your mind. Then the houses in your budget came in smaller than you pictured.

That’s the reality for a lot of buyers right now. Affordability is tight.

But don’t let that discourage you. Going smaller might actually be a smart play in today’s market – and the upside can be bigger than you’d think. Let’s break down two places to look where smaller won’t necessarily feel like a compromise.

Homebuilders Are Focused on Smaller Options Lately

For starters, smaller is kind of on trend right now. Newly built homes have been shrinking for years.

According to the latest data from the Census, the median square footage of new single-family homes has been falling overall since 2014 (see graph below):

Why? Builders focus on the types of homes consumers want the most. After all, they want to build what will actually sell. And for the past decade, buyers seem to agree less is more.

Especially right now, when affordability is a key concern, they’re building homes with smaller square footage than a decade ago. And that’s good because that may be more within budget for many buyers. It’s part of why new home prices recently hit a 5-year low.

So, if you’re not getting excited about any of the existing options at your price point, it may be time to check out what builders are doing in your area.

You may find brand-new options you really love with all the latest and greatest features. And if you’ve got modern appliances and design, maybe slightly less square footage doesn’t feel like that much of a compromise anymore, especially if the house is move-in ready.

Condos Are Opening Up Another Path

Just in case you don’t have a ton of new builds in your area, another avenue worth exploring is condominiums or condos.

For buyers crunching numbers to make the math work, condos can take real pressure off the budget.

According to the National Association of Realtors (NAR), the median price for condos is less than the median for single-family homes in every region (see graph below):

Part of that is because condos are typically smaller. And smaller square footage can come with a smaller price tag too. That’s a selling point to affordability-strapped buyers right now – and it’s one of the reasons we’re seeing a bump in condo sales.

For eligible military service members, veterans, and qualified buyers, exploring financing options like VA home loans may also help make homeownership more affordable. Understanding the benefits available to you can open additional opportunities when comparing condos, smaller homes, or newly built properties.

The number of condos sold rose 2.7% from just a month ago. It’s also up year over year, according to NAR.

Ali Wolf, Chief Economist for New Home Source, explains why more buyers are going this route:

“In addition to favoring smaller floor plans, more consumers are showing a willingness to live in an attached home. This shift is not driven by a preference for shared walls, but by a pursuit of value.”

The Community Does Some of the Heavy Lifting

Here’s why smaller may still work for you.

Whether it’s a condo complex or a neighborhood of detached single-family homes, the right community can give you back in amenities what you trade in square footage.

Many developments are designed so the home is just one piece of where you actually spend your time.

Master-planned communities often include walking trails, pools, fitness centers, co-working spaces, and outdoor gathering areas – the kind of features that pick up where your floor plan leaves off.

No room for a dedicated office?

The co-working space might be just a five-minute walk away.

Want a place to work out?

It’s already built in with the shared gym. And features like that can make opting for a smaller footprint feel less like a compromise – and more like a big lifestyle upgrade.

Explore Affordable Home Options with a Local Real Estate Expert

Today’s smaller homes, newly built properties, and condos are helping many buyers make homeownership more achievable without giving up the features that matter most.

In many cases, choosing a smaller footprint can create more financial flexibility while still providing access to great neighborhoods and community amenities.

If you’re buying a home and want to understand which options fit your budget and lifestyle, connect with experienced real estate agents who can provide local market guidance and help you compare the opportunities available in today’s market.

The post Less House, More Home: Why Smaller Homes Are Paying Off for Today’s Buyers appeared first on KM Realty Group LLC.

But here’s the truth: with the right guidance, the process is completely manageable, and the reward is absolutely worth it.

At KM Realty Group LLC, we’ve helped hundreds of first-time buyers go from nervous and unsure to confidently holding the keys to their new home.

Consider this your beginner’s roadmap — ten things we wish every first-time homebuyer knew before they started.

1. Know Your “Why” Before You Shop

Before you fall in love with a listing, get clear on what you actually need.

How many bedrooms?

Do you need a home office?

How important is the school district or commute time?

Making a list of must-haves versus nice-to-haves will save you hours of searching, whether you’re looking at single-family homes or condos.

2. Get Serious About Your Budget Early

Whether you’re buying in Chicago or the surrounding suburbs, your budget isn’t just your mortgage payment. A smart homebuying budget accounts for property taxes, homeowner’s insurance, HOA fees (if applicable), utilities, and routine maintenance.

A commonly used guideline is to keep your total housing costs at or below 28–30% of your gross monthly income. Run the real numbers before you fall in love with a price point.

Don’t forget about the down payment. While 20% down avoids private mortgage insurance (PMI), many first-time buyer programs allow as little as 3–5% down. We’ll help you understand your options.

3. Check and Improve Your Credit Score

Your credit score has a direct impact on the interest rate you’ll qualify for — and even a small difference in rate can mean tens of thousands of dollars over the life of a loan.

Before you apply for anything, pull your free credit report, dispute any errors, pay down high balances, and avoid opening new lines of credit.

Give yourself at least 3 to 6 months to improve your score if needed.

4. Get Pre-Approved — Not Just Pre-Qualified

This is a big one. A pre-qualification is a quick, informal estimate of what you might borrow.

A pre-approval is a formal review of your finances by a lender — and it’s what sellers take seriously.

[Not sure what these terms mean? We’ve broken down the most confusing homebuying terms right here.]

In a competitive market, submitting an offer without a pre-approval letter is like showing up to an interview without a resume. It signals to sellers that you’re a serious, ready buyer.

Get pre-approved before you tour a single home.

5. Understand the True Cost of a Mortgage

Your mortgage payment is made up of more than just principal and interest.

The acronym PITI covers it all: Principal, Interest, Taxes, and Insurance.

Ask your lender for a full breakdown so you know exactly what you’ll owe each month — no surprises.

Also, take time to compare loan types.

A 30-year fixed mortgage offers predictable payments; a 15-year mortgage builds equity faster but carries higher monthly payments.

An FHA loan may work well if your credit score isn’t perfect. Your agent and lender can walk you through what fits your situation.

6. Don’t Skip the Home Inspection

We cannot stress this enough: never waive your home inspection. Even brand-new construction can have issues. A professional inspector will evaluate the roof, foundation, electrical systems, plumbing, HVAC, and more.

The inspection report gives you negotiating power — and peace of mind.

The few hundred dollars you spend on an inspection can save you thousands down the road.

7. Making an Offer Is a Strategy, Not Just a Number

When you find the right home, your offer needs to be competitive and well-crafted.

This means more than just the price.

Sellers consider the earnest money deposit, your financing terms, contingencies, and your proposed closing timeline.

In a seller’s market, you may need to act quickly and come in at or above asking price. In a buyer’s market, there’s more room to negotiate.

Your KM Realty agent will analyze comparable sales and help you craft an offer that’s both competitive and protects your interests.

8. Budget for Closing Costs

First-time buyers are often caught off guard by closing costs.

These are fees paid at the end of the transaction — separate from your down payment — and they typically range from 2% to 5% of the loan amount. They include:

• Loan origination fees
• Title insurance
• Appraisal fees
• Attorney fees (in some states)
• Prepaid taxes and insurance
• Recording fees

Ask your lender for a Loan Estimate early in the process. This document outlines your expected closing costs so you can plan accordingly.

In some cases, you may be able to negotiate for the seller to cover a portion of them.

[FYI. Find more information about the “local down payment assistance programs“]

9. Be Patient — And Protect Your Finances During the Process

Once you’re under contract, don’t make any major financial moves. Don’t open new credit cards, make large purchases, change jobs, or co-sign a loan for anyone.

Lenders re-verify your financial situation right before closing, and any changes could delay or even derail your loan approval.

Patience is also key during the search itself.

It’s normal to lose a bid or two, or to search for several months before finding the right home. Trust the process.

10. Choose the Right Real Estate Agent

Your agent is your advocate, your negotiator, your guide, and — on the hard days — your calm in the storm.

A great buyer’s agent costs you nothing (the seller typically covers the commission), yet brings enormous value.

Look for someone who knows the local market, communicates clearly, and genuinely has your best interests at heart.

That’s exactly what you’ll find at KM Realty Group LLC!

Ready to Take the First Step?

Buying your first home doesn’t have to be stressful. With the right team by your side, it can be one of the most empowering experiences of your life.

KM Realty Group LLC is here to guide you every step of the way — from your first question to the moment you unlock your front door for the first time.

Our experienced agents specialize in working with first-time buyers, and we’re committed to making sure you feel informed, confident, and supported throughout the entire process.

Contact KM Realty Group LLC today for your FREE consultation. There’s no obligation — just honest answers and expert guidance tailored to your unique situation.

Reach out to us at (312) 283-0794 or visit kmrealtygroup.net to get started. Your dream home is closer than you think.

The post 10 Things Every First-Time Homebuyer Needs to Know appeared first on KM Realty Group LLC.