Last week we looked back at 2025 and did a results analysis on my 2025 predictions and actually I did a pretty solid job.   This only gives credence to the “sometimes a blind hog finds and acorn” theory, more than it does to my ability to see the future, but regardless I always enjoy making predictions and then seeing how they turn out and it sounds like our readers enjoy them as well.  That being said, lets take a peek into what is going to happen in 2026!!

1.      Overall housing inventory will remain steady. 

I expect to see the current White House administration do something in an attempt to stimulate the housing market, but outside of the “portable mortgage” option, I don’t see much that will move the needle in a meaningful way to impact overall affordability.  You see, interest rates are not the panacea for affordability.  Lower interest rates will help, but to really impact affordability, you also need a meaningful drop in overall home prices, and no homeowner really wants that.  You need to have both lower interest rates and lower home prices to really impact affordability.  If you just lower interest rates to increase housing demand, the increase in demand will only drive up prices as long as inventory remains on the lower side, thus what you saved in lower interest rate payments will only be eaten up by higher home prices.  It will be a wash.  The “portable mortgage” idea is worth exploring and may provide a win/win for buyer and sellers….thus moving the needle enough to impact affordability.

2.      Interest rates will settle between 5.5% and 6%.

I really cant do predictions with out have some kind of prediction on interest rates. Since we did not get to 5.5% last year, I will predict that we will this year.  That being said, if Trump gets his way we may see significantly lower than that.  Again, I think if we do lower this significantly (under 5%) we will be robbing Peter to pay Paul, as stated in my first prediction.  Regardless, housing is now 15-20% of our nations GDP so there will be time spent and all efforts exhausted to get it moving more briskly again.  Nobody really talks about it, but from a number of sales perspective we have been in a housing recession for at least the last couple of years now.  The reason you don’t hear as much about it is because prices have held fairly steady through lower than average inventory.

3.      2026 will look very much like 2025 as far as sales and inventory are concerned.

I expect inventory to remain low and prices to remain fairly steady.  Overall real estate is a fairly simply supply/demand economic situation.  As long as the supply and demand sides are in harmony prices will hold steady, as they did in 2025.  To be honest I don’t see anything on the horizon, that is not artificially created or a black swan event, that will move the needle either way.  I do feel like the economy is making a comeback and wages have been and will continue to rise which continue to help, just wont help fast enough to meaningfully move the needle.

4.      More and more people will continue to gravitate towards renting vs. owning. 

This one has been building for years and will continue to evolve and pick up steam.  With affordability being front and center putting strain on pocketbooks people of all ages have been gravitating towards renting.  Renting allows more freedom, flexibility and less responsibility, giving renters the lifestyle they are looking for.  Yes, people still believe home ownership is a basic principle of wealth building, but not at the cost of everything else.  The bottom line is that when they have to choose between owning their own home or renting without the responsibility of upkeep or high down payments, they are choosing to rent…..and will continue to do so. This will likely put more pressure on rental unit availability and rent prices.  I would not be surprised to see rents climbing again soon, as they have been fairly steady the past couple years.  The bottom line is affordability forces the hand of most because the upfront and upkeep costs are significantly less when you rent vs. buy.

5.      The Colorado Avalanche will win the Stanley Cup and the Denver Broncos will make it to the AFC title game and fall just short of the Superbowl losing to the New England Patriots. To be fair, let the record show that I made this prediction on Friday Jan 2^nd before this was already a done deal ??

What are yearly predictions without the Avs or Broncos.  The Avs are on a historic pace and if they stay healthy will be a very hard team to beat in a best of 5 or 7 series.  They are deep and come at you in waves and their goal tending is the best combo on the league.  The Broncos are almost there….but not quite.  There have been too many close wins and a spotty running game coupled with inconsistent QB play from Bo Nix.  You can’t pull a rabbit out of the hat every time…..and it will eventually catch up to them.  Unfortunately for everyone NOT A PATRIOTS FAN, Drake Maye is the real deal and they are here to stay. Ugh….say it isn’t so.

There you have it!! 2026 in a perfect crystal ball. Take these predictions to the bank and you might just be very disappointed! LOL.  I know none of these are CRAZY outside of the box predictions, but I don’t expect 2026 to be a CRAZY outside of the box year.  While we wait and see how they work out we can revel in the fact that we live in one of the greatest places on the planet.  Hard not to feel truly blessed every day.  The Western Slope is still hard to beat….although Cabo San Lucas runs a close second!!  Be safe and thanks for reading.

Dave Kimbrough

The Kimbrough Team – RE/MAX 4000

Have a Question?  Ask Dave!

dave@thekimbroughteam.com