“So, I wouldn’t necessarily tell a qualified buyer to put their plans on hold simply because they’re waiting for the perfect rate. If the numbers work today, buy the right home for the right reasons and keep an eye on opportunities to improve the financing later. Many of our buyers are working some very good deals in the current market.”
Rest of year to remain subdued, but some cause for 2027 optimism
For now, Zillow doesn’t see much chance of an imminent recovery for the national housing market, pointing to another big annual decline in sales last month.
The real estate firm’s data showed newly pending home sales plunged by 17% in October compared with the same time last year, marking their most significant year-over-year drop for about three years.
Zillow chief economist Mischa Fisher said the housing market has enough time to post an even worse result before the end of 2026 – but she painted a relatively optimistic picture of the outlook for January onwards.
“Next month is likely going to be the worst of it,” Fisher said. “I expect the pace of the slowdown to ease into the new year. There are deals to be had for buyers able to brave the affordability headwinds in the coming months, and the continued inventory buildup means there is a lot of upside for sales into next year if we get rate relief.”
