Published January 5, 2026

2026 Real Estate Forecast

Written by Brad Alexander

Brad Alexander’s 2026 Real Estate Forecast

If anyone tells you they know exactly what is going to happen in the future, ask them what stock or startup you should invest in. The truth is no one knows for certain what is going to happen in any industry, including real estate.

That said, we do have data, trends, and experience that help us predict where the market may be headed. Just remember, this is a forecast, not a guarantee. Even the weatherman predicts rain and sometimes not a single drop falls.

This forecast is specific to the Central Texas real estate market. Real estate is local, and what is happening across the country does not always reflect what we are seeing here at home.

The good news is this. We believe the Central Texas real estate market will improve in 2026.

Here is why.

First, there is a clear effort by the federal government to stimulate the housing market. While programs such as extended mortgage terms or portable loan options that allow buyers to keep a lower interest rate are not active yet, discussions are happening at the highest levels. Historically, when housing slows, solutions eventually follow because real estate plays such a critical role in the overall economy.

Second, there is a large group of buyers and sellers sitting on the sidelines. Buyers are waiting for interest rates to come down, while sellers are waiting for prices to stabilize or move upward. This pause has created pent up demand. In fact, 2024 recorded the lowest number of real estate transactions in over thirty five years, even lower than during the 2008 housing crash. When confidence returns, those delayed decisions often come back into the market quickly.

Third, Central Texas continues to benefit from its location and lifestyle. We are still part of the Austin metro area, which remains one of the most desirable places to live in the United States. Strong job growth, a diverse economy, and quality of life continue to attract people to this region. Those fundamentals matter more than short term market cycles.

While no one has a crystal ball, history shows that markets move in cycles. The current environment feels more like a reset than a collapse. For buyers and sellers who stay informed and plan strategically, 2026 could present real opportunities.

If you want to talk about how this forecast applies to your specific situation, The Alexander Home Team is always here to help.

Brad & Stephanie Alexander
The Alexander Home Team – Keller Williams

Brad - 512-296-6817 Stephanie 512-749-5992 Office 512-361-1568

bradalexander@kw.com salexander@kw.com

www.alexanderhometeam.com www.alexanderhometeam.kw.com

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