5 Things No One Is Telling You About the Housing Market Shift

By Bryan David

Bryan David is one of the best REALTORS® serving Ocean Springs, Biloxi, Gulfport and the entire coast. He is a Biloxi native, military veteran and retiree, and a multi-year top-producing agent with hundreds of satisfied clients.

Are you banking on 2026 to finally bring the real estate breakthrough you’ve been waiting for? What if the breakthrough isn’t a market event but a strategic shift? While headlines speculate about booms or crashes, a quieter, more decisive transformation is already rewriting the rules for buyers and sellers. The agents and investors who succeed next year won’t be the ones who predicted the market perfectly, but the ones who understood what the market now demands.

This isn’t about a boom or a crash. It’s about a more balanced, more nuanced market where strategy beats speculation every time. Based on what we’re seeing on the ground, here are the five critical things you must understand before making a move in 2026.

1. Mortgage rates. Yes, mortgage rates may ease slightly, but leading forecasts have them staying firmly in the low-to-mid 6% range throughout 2026. The translation? Affordability will improve some, but you won’t be “rescued” by a plunge to 4%. This creates a payment-sensitive market.

For Buyers: Winning requires clean financing, smart offer terms, and strategic use of seller credits and rate buydowns. Focus on what you can control: your offer’s structure.

For Sellers: Your buyers are doing strict monthly payment math. Competitive pricing and thoughtful incentives will matter far more than holding out for a top-dollar price that ignores today’s rate reality.

2. Market direction. We’re seeing more balance. Inventory is rising slowly, giving buyers more choices and a bit more leverage than the “anything will sell” frenzy of recent years. However, this is a shift toward normalization, not a complete transfer of power.

For Buyers: You’ll have more options, but don’t confuse more choices with unlimited leverage. The best-prepared buyers with clean offers will still win the best-maintained homes.

For Sellers: Overpricing is your biggest enemy. In a balanced market, an overpriced home doesn’t invite negotiation, it gets ignored. Price based on precise, current data from day one.

3. Home condition. “Move-in ready” has replaced “livable” as the minimum standard. With more choices, buyers are intensely focused on condition, scrutinizing everything from paint and flooring to roof age and HVAC systems. Any sign of deferred maintenance, moisture, or pests isn’t just a negotiating point; it’s a deal-breaker.

For Buyers: Learn to discern between light cosmetic issues (an easy fix) and deferred maintenance or structural concerns (a major red flag). A well-maintained home is a premium product.

For Sellers: Condition is now your biggest advantage or your deepest discount. Investing in pre-listing repairs and updates isn’t an expense; it’s the direct path to a faster sale and a higher net price.

4. Insurance. This may be the most critical and overlooked factor. Insurance is becoming stricter and more expensive, and most carriers now require full property inspections for new policies. Furthermore, flood insurance is a major wild card, with the National Flood Insurance Program (NFIP) facing reauthorization uncertainty.

For Buyers: Get insurance quotes immediately after an offer is accepted or even during your search. Request the seller’s elevation certificate and declaration pages. Shop around aggressively.

For Sellers: An old roof will cost you, often requiring replacement to secure a buyer’s policy. If you have a grandfathered flood policy, do not let it expire before selling.

5. Seller Concessions. Concessions are back in a big way and are a key tool for getting deals done in a balanced market. This isn’t about “winning” or “losing” in a single term; it’s about finding the creative solution that works.

For Buyers: Strategically ask for what makes the most sense: closing cost help, repair credits, or a mortgage rate buydown.

For Sellers: Focus on your final net proceeds, not your ego. If buyer traffic is slow, offering a concession is often the smartest way to attract serious offers and get to the closing table.

What this means for your move. 2026 isn’t about waiting for perfect conditions. It’s about preparing for real ones. This balanced market rewards the well-informed, the strategically agile, and those who understand that the rules of the game have subtly changed.

If you’re thinking about buying or selling and want a personalized assessment and action plan built for the 2026 market, call 228-215-1861, email bhgre@expectrealty.com, or visit expectrealty.com to schedule a time with me, Bryan David, and the team at Better Homes and Gardens Real Estate Expect Realty. Your 2026 advantage won’t come from timing the market; it will come from understanding it. Let’s build your plan.