What to Expect from the 2026 Real Estate Market

📉 1. Mortgage Rates Expected to Stabilize—Finally  

After several years of volatility, economists predict that 2026 will bring more stable—and possibly lower—mortgage rates.

• Rates may settle into the 5%–6% range, depending on inflation and Federal Reserve policy.

• This will increase buyer confidence and gradually expand affordability.

• Stability in rates often leads to more balanced negotiations between buyers and sellers.

For Savannah and the Lowcountry—where buyers include retirees, military families, remote workers, and second-home seekers—this stability will be a welcome relief.

🏡 2. Home Prices Will Keep Rising—but Not as Fast  

Experts expect home values to rise modestly, not dramatically.

Why?

• Inventory is still limited in many desirable neighborhoods.

• Population growth in Georgia and the coastal Carolinas continues.

• Buyers are motivated by stabilized interest rates.

However, compared to the rapid jumps of 2022–2024, 2026 is expected to bring more moderate, steady growth.

For markets like Savannah’s historic districts, Bluffton’s master-planned communities, and Hilton Head’s resort neighborhoods, this means maintaining strong value without the runaway bidding wars of past years.

📦 3. Inventory Will Improve—But Still Not Enough  

New construction is still catching up, and many homeowners remain locked into low pre-2023 rates.

So while 2026 may see:

• More new builds

• More move-up sellers reentering the market

• More inventory overall

…it still may not be enough to create a true buyer’s market.

Expect a more balanced market, but not an oversupply.

🌍 4. Lifestyle Markets Like Savannah & the Lowcountry Will Stay in High Demand  

The Southeast remains one of the fastest-growing regions in the country, thanks to:

• Lower cost of living

• Mild climate

• Coastal lifestyle

• Strong job growth

• Favorable tax environment

From Savannah’s charming historic homes to Bluffton’s family-friendly neighborhoods and Hilton Head’s resort communities, the region is likely to continue attracting buyers relocating from higher-cost states.

Remote and hybrid work also keep fueling demand for homes with office spaces, larger yards, and flex rooms.

🏘️ 5. Buyers Will Prioritize Updated, Move-In-Ready Homes  

Renovation costs remain high due to labor and materials. Because of that, 2026 buyers will pay a premium for:

• Modern kitchens & baths

• Energy-efficient upgrades

• Updated roofs, HVAC, and windows

• Turnkey condition

If you’re a seller in Savannah or the Lowcountry, investing in light updates before listing could significantly boost your return.

💼 6. Sellers Should Expect Savvier Buyers  

Thanks to AI tools, virtual tours, and increased transparency around pricing, buyers in 2026 will be:

• Better informed

• More research-driven

• More selective

Homes that are overpriced or poorly marketed will sit longer—especially in areas with growing inventory.

📊 7. A More Balanced Market Overall  

While some areas may lean slightly buyer- or seller-friendly, the overall national trend points toward a more normalized market—something we haven’t seen consistently since pre-2020.

For Savannah and the Lowcountry, this means:

• Steady sales

• Healthy competition

• Realistic pricing

• Fewer bidding wars

• More predictable timelines

A refreshing shift from the turbulence of the last five years.