What the 2026 Housing Market Means for Naperville Homeowners and Buyers

Thinking about buying or selling in Naperville in 2026? You're not alone. I’ve been getting this question a lot:
“Joe, is it finally going to be easier to make a move next year?”

The short answer: Yes—slowly.
The big real estate players like NAR, Zillow, and Realtor.com all agree: 2026 is shaping up to be more balanced and manageable for both buyers and sellers.

Let’s break it down—Naperville style.

🏡 Home Sales: Picking Up, But No Stampede

You’re not going to see the kind of feeding frenzy we had during the pandemic, but sales are starting to trend upward. 

National Forecasts:

• NAR expects a 14% increase in home sales.

• Zillow is forecasting a 4.3% boost, calling it a “rebound” as more buyers return.

• Realtor.com sees a slower 1.7% climb, noting many homeowners are still sitting on sub-6% mortgages.

👀 What this means for us here in Naperville:
Here in town, I’m watching how quickly listings go under contract. That’s usually one of the best signs of local demand heating up. If homes start going under contract in under a week again, you’ll know the shift is real.  We are very fortunate, when a good listing hits the market, it sells.  But it still needs to be a good value - proper pricing is based on location, condition and future value.  People buying homes here in Naperville are smart with their money - and with all the information available online, they know when a home is a good value and when it isn't. 

💡 Pro Tip: If you’re thinking about selling, pricing your home right in the first 48 hours matters more than ever.

💰 Home Prices: Still Rising, But You’ve Got Some Wiggle Room

Waiting for a price drop? That ship has likely sailed.

National Outlook:

• Zillow: Prices rising 1.2%

• NAR: Prices increasing up to 4%

• Only 12 major markets are expected to see price drops in 2026 (compared to 24 in 2025)

📍 In Naperville:
We’re seeing steady equity growth—great news for sellers. But buyers might get a little more breathing room when it comes to negotiation.

"The bidding wars aren’t gone, but they’re not as brutal as they were in 2021."

📉 Mortgage Rates: Better Than 2025, But Don’t Expect 3% Again

The days of record-low rates are in the rearview mirror, but things are looking a bit more manageable.

Forecasts Say:

• 6.3% average rate expected in 2026 (Realtor.com)

• More buyers returning as payments become more affordable (Zillow)

📍 For Naperville buyers:
This is your window to connect with a great local lender early and lock in what could be the best rate we’ll see for a while.

"Even a half-percent difference in your rate can mean thousands saved over time."

🏘️ Inventory: More Homes, But Still Not Flooded

We're finally getting more listings across the country—and that trend is starting to show in Naperville, too.

National Forecast:

• 8.9% increase in available homes

• 4.6 months of supply—a step closer to a balanced market

• Builders are throwing in rate buydowns and perks to keep things moving

👀 Locally:
I’m seeing more choices hit the market every month, especially in neighborhoods like Saybrook, Cress Creek, Brookdale, Ashbury, and Downtown Naperville. But standing out still matters when making offers—especially on well-maintained, move-in-ready homes.

🧾 Affordability: Finally Moving in the Right Direction

This one’s for the first-time buyers and renters who’ve been priced out for a while. There’s hope.

National Trends:

• The payment share of income is expected to drop to 29.3%, the lowest since 2022

• Renters are finding it easier to save for a down payment

📍 Naperville Insight:
If you’ve been renting around North Central College or Ogden Ave, this might be the time to start prepping for ownership. I can connect you with local down payment assistance options or first-time buyer programs that are often overlooked.

🔑 If You’re Buying in 2026…

You’ll benefit from:

• Slightly lower rates

• More homes to choose from

• Less intense competition

Your biggest advantage? Getting pre-approved early. That’s how you move fast when the right home hits the market.

💸 If You’re Selling in 2026…

You’re still in a strong position thanks to:

• Continued price appreciation

• Equity gains that can power your next move

• A larger buyer pool that can now afford to buy

But keep in mind: buyers are payment-sensitive now, so pricing your home right is key.

The most overlooked part of a sale? Timing your listing to match local demand spikes—like right before spring or school break.

🧭 Final Thoughts: 2026 Is About Strategy

Look, no one has a crystal ball. But based on everything we’re seeing, 2026 will feel more balanced than the wild ride of recent years.

If you’re thinking about a move—whether it’s upsizing, downsizing, or just making a lifestyle change—let’s talk. I live for this kind of strategy planning, and I’d love to walk you through your options.

📞 Call or text me anytime — I’m Joe Graham, your Naperville neighbor and local real estate pro.