The market is showing mixed but stable signals as we move through early 2026. Price per square foot jumped 3.8% month over month, largely driven by a higher share of luxury closings, while the median price held closer to flat at $447,000. Supply rebounded in January, rising about 10% as previously canceled listings returned, giving buyers more options again. Demand is slightly improved from last year but still measured, with under contract activity up just over 2%. Interest rates are lower than a year ago, yet momentum remains uneven, with stronger activity at the top end and more price pressure in entry and mid range segments. Overall, the market feels steady but sensitive to shifts in supply and buyer confidence as we head toward spring.
Market Snapshot- January 2026
The market is starting 2026 in a more balanced place. Inventory is down about 10% from December but still roughly 12% higher than a year ago, so buyers still have good selection. Demand is running ahead of last year, with closings up about 14% and under-contract activity up about 5%. Prices are up slightly year over year, which supports confidence in the market, but affordability has actually improved because household incomes rose faster than home prices last year. For first-time buyers, that means conditions are a bit friendlier; for investors, volume is healthier; and for luxury buyers, activity remains steady without the swings we saw last year.
