If you are thinking about buying or selling a home, it is important to know the real estate outlook for 2026 in New York State. Interest rates, property prices, housing inventory, and regional factors will all play big roles in shaping the year ahead.

Perhaps the biggest news related to New York’s real estate market is that mortgage rates are beginning to fall. Fannie Mae expects them to drop from around 6.5% to around 5.9% by the end of 2026.

Another sign of impending change is the jump in homes on the market. Once more, Fannie Mae’s data shows an increase from 4.72 million homes in 2025 to over 5.10 million homes in 2026, thanks to homeowners downsizing and moving out of the Empire State, as well as the slow but steady contribution of new construction.

However, an increase in availability and a decrease in mortgage rates will likely mean slower pricing growth overall. That said, housing demand is not expected to decrease. Instead, it will continue to slowly grow, spurred by slow but positive economic growth, as well as more housing and more affordable prices.

Zooming in on Westchester County, the market reflects these national trends, but with some local nuances. Areas like Bronxville, Scarsdale, and Larchmont will stay popular with homebuyers looking for suburban homes within easy reach of New York City. Homes here hold their value, and inventory often moves fast. Do not expect demand to decline even if the market softens a little bit.

On the fence about buying or selling? Tracking both national real estate trends and local Westchester specifics will help inform your decision. It is also important to have the right help in the process. One of our knowledgeable local agents can help you feel confident in your real estate decisions no matter what the 2026 market brings.

Whether you’re considering your first home, moving to a larger property, or thinking about selling, understanding the outlook will help you plan effectively.