Housing Market Outlook 2026: A Slow Reset, Rising Risks, and Signs of Future Recovery As 2026 approaches, the housing market remains in the middle of what Rick Sharga calls a five-year “reset,” rather than a rapid correction or rebound. After prices soared more than 40% during the pandemic and mortgage rates doubled, affordability hit the worst levels in decades. This forced existing-home sales to fall from over 6 million in 2021 to about 4 million for the last two years — a level Sharga believe
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