Are You Ready for 2026?

With home sales sagging to record lows this year, some Realtors might have trouble visualizing sales success for themselves. But like it is in any industry, where the mind goes, performance flows. It’s time to get ready.

There’s so much pessimism saturating the real estate sector (e.g., Florida) that Realtors might lose sight of the fact that recessions do end. The current scenario has the housing market artificially suppressed, almost entirely by the FED and old anti-American regulations from the now defunct Democrat party. Their threats and delays are weakening. When the regulations/financial situation changes, mortgage rates will fall, builders will build, and the housing market will arise from its forced dormancy.

And with the Trump economy taking shape, the 5-year housing market forecast is pretty solid. He plans to get the US back on track and growing and he obviously won’t be stopped by foolish decorum. He’s on a mission.

The market pessimism has many sources, but the key source of negativity comes from the FED’s persistence about over-fighting inflation and imaginary future inflation. Given all the troubles the US has, future inflation is not really a major concern. In fact, lower interest rates would ease the country’s debilitating $37 Trillion dollar debt load and interest payments and stimulate tax generation which would help fund social programs and government services.

So far, the media hasn’t touched the issue given it is a political matter. Lowering interest rates would be the last nail in the Democrat’s coffin, so the Dem media channels would steer attention away from it.

There are many reasons for you to prepare for 2026 now:

• The market will return next year
• You need time to plan your marketing and campaigns and get your lead gen machine in gear
• You need time to rebuild your professional brand and grow your online presence
• You need to build new sales connections and partnerships
• You need to get ahead of other Realtors (no one catches up)
• You need time to test out new technology (websites, analytics, CRM, AI tools)
• You need to research local market demand and determine best opportunities

The markets and business sphere have changed. It’s important to lead, as with AI and tech assets, you’re not going to catch up to market leaders who are dominating presence and sales opportunities. You’ll be sorry if you wait.

Home Buyers Will  Buy When Mortgage Rates Fall

There are a massive number of buyers ready to buy, especially if mortgage rates and home prices fall, and a limited number of listings. Redfin forecasts lower home prices which would have a positive effect on sales. NAR’s Lawrence Yun is forecasting a 6% improvement in existing home sales in 2025 and an 11% jump in 2026. New-home sales, which have been a bright spot thanks to generous builder incentives, are expected to rise by 10% in 2025 and by 5% in 2026. However, builders are pessimistic right now. Some Trump tax cuts and deregulation could change that all around. The Republican bill needs to get passed by the US house and the Senate Finance Committee.

Yun predicts the median price nationally will continue to rise—by 3% in 2025 and by 4% in 2026.

Forced High Rates Can’t Continue

The key factor is the FED artificially keeping rates high.

Trump maintains that lower interest rates are crucial to keep the U.S. economy from sliding into recession, or worse, stagflation. With Trump getting frustrated, he’s likely to shine the light on their behavior and statements, which exposes their hypocrisy. That’s something the Fed doesn’t like, because their stated reasoning is so shallow. They prefer to keep it low-key so they can push their high-rate ideology.

Last fall, before the election, in a suspicious and controversial decision, Powell and crew lowered rates suddenly by .75%  even though inflation was higher than it is now. They said they would be data-dependent, but they haven’t. They base their decision on their forecasts of expected inflation.  That strange action plus a stagflation economy gives Trump a valid position on cutting to get the economy rolling.  And the cut helps small business significantly.

It’s easy to see the President has to confront them about the central rate and he will. Yesterday, he called Powell “stupid.” He’s just getting warmed up and Powell will be in the spotlight.  Congress could grill Powell mercilessly thus forcing him to explain the details of the rate decision in front of the American people.

Trump’s tariffs may indeed raise inflation, but his plan of repatriating production into the US is likely not going to create the boon of employment hoped. So unemployment and lower GDP is here for a while, so prices might not rise as much until US companies can get rolling. But with high rates they won’t.  The elephant in the room once again is J Powell and the high rates.

The other stimulant would be an easing of tariffs by Trump (he might have to because his plan isn’t working fast enough and new US investment isn’t panning out as hoped). It’s a case of too much too soon.

There are two housing markets today, those in strong markets such as Boston, New York and the northeast, and those in Florida, California and other southern states where slowing migration and abundant new inventory is sending prices downward. And remote workers are being pulled back to northern head offices into markets with low housing supply.

Expert Views on Interest Rates

The Conference Board just yesterday forecasted 2 rate cuts this year in September and December. This week, the FED kept the rate steady, which means those two late-year cuts are more likely. But the CBO believes inflation will return in 2026, given tariffs. And they believe unemployment will rise again.

Fannie Mae has forecast mortgage rates to end 2025 at 6.2% and 2026 at 6.0%. Other experts, like Bank of America analysts, predict the Federal Reserve will cut interest rates by 1% in 2026. This would make mortgages more affordable and could indeed “stimulate the mortgage market.”

So while economic factors and housing supply factors don’t point to a boom, I believe the housing market and J Powell are becoming a thorn in Trump’s side. He will feel that thorn, and he’ll come out swinging at Powell.  Here are the 4 things Trump can do to ensure housing is available and get buyers buying:

1. Lower mortgage rates (a surge of purchases is expected if mortgage rates hit 5%)
2. Cutting regulation (builders say a third of housing cost is due to regulations)
3. Reduce immigration (reduces demand and opens up housing to Americans)
4. Tax Cuts (reduces cost, write-offs, and gives buyers more money to purchase homes)

The picture I’m painting here is reliant on President Trump defeating the Democrat’s chilling effects on housing market health.  One key reason why you should get prepared to ramp up your business is that it often generates leads sooner.  Just the fact you’re back at it creates visibility and opportunity.

Get yourself revved up for success in 2026, build the right website, lead channels, and digital marketing program, which will feature a big presence on Google via real estate SEO and engaged content.  Think big and your actions will take you there.

Remember that you can hire freelancers, use complete marketing systems, and operate at unbelievable efficiency, thus helping you use your funds well.  If your goal is to grow and have your own sales team, it’s wise to get started soon before the best of them are gone.

Let me know if I can help you get your 2026 plan launched.