New study shows buyers are highly motivated

Motivated buyers

We’ve been reading the tea leaves for what’s going to happen in 2026, and we came across a study this week that points to some very positive developments.

A new survey published by RE/MAX shows that 88% of prospective homebuyers are planning to purchase next year.

We go into more detail below, but the main takeaway is that – now that the market appears to be entering calmer seas – buyers are becoming less hesitant about dipping a toe in the water.

As you’ll see in the stories below, this seems to be the general outlook for next year. No crazy highs. No daunting lows. Just some much-needed stability returning to the market.

On that note, we’re returning with another edition of The Blueprint. Let’s get into it, shall we?

- James and David

Home prices go negative for the first time in over 2 years

National home prices are down 1.4% over the last three months. This marks the first time prices have gone negative since mid-2023, which was a year after the Federal Reserve first brought rates up from zero, and when mortgage rates jumped from 3.9% to 7%. That’s according to the latest report from Parcl Labs via CNBC. Here’s what else they report:

• Inventory remains historically low – While we’re seeing a rise in supply, it’s still low compared to historical standards. Active listings climbed nearly 13% year over year in November, even as new listings rose only 1.7%. Many hesitant sellers also pulled homes from the market. Overall, the modest increase in inventory is enough to limit price growth amid weaker demand and higher borrowing costs.

• Regional performance is diverging sharply – Sun Belt metros are seeing the steepest drops, with Austin down 10%, Tampa and Houston down 4%, and Atlanta and Phoenix down 3%. In contrast, Midwest and Northeast markets—Cleveland, Chicago, New York, and Philadelphia—posted gains. The split reflects underlying affordability differences and the steadier dynamics of older, less volatile markets.

• Flat prices are ahead – Price movement is likely to stay muted with mortgage rates holding in a narrow range and barely reacting to the Fed’s latest cut. Builders report weak demand, ongoing incentives, and only slight improvements expected in 2026. Expect home values to hover near zero growth, with small changes driven mostly by rates and broader economic conditions.

Our take

While flat price growth isn’t exactly headline-making material, it does give us a clearer sense of how to navigate the market. Buyers can plan ahead without fearing runaway appreciation; meanwhile, sellers can price to the market without chasing peak-era comps. That gives us all some much needed stability. If mortgage rates cooperate even modestly, we could see steadier pricing and more buyers and sellers who feel confident enough to make moves.

Prospective homebuyers are highly motivated to purchase in 2026

88% of prospective homebuyers plan to purchase in 2026, according to the latest research recently published by RE/MAX. 78% would move within six months if prices improved, and 58% would move faster with lower rates. Overall, this study shows that buyers are highly motivated. Here are other key takeaways:

• Affordability remains the primary gatekeeper – Affordability is the key factor holding buyers back, across all age groups. Even older buyers are constrained. 78% of respondents aged 60–65 say access to affordable homes is their top concern. 

• Buyers will pay more for everyday amenities – Buyers care more about practical conveniences—nearby grocery stores, parks, restaurants—than trend-driven features like coworking spaces or EV chargers. Sixty percent would pay more for shared amenities, and 76% of those would pay at least 5% above the purchase price.

• Sense of community is important – 51% plan to shop in the suburbs, and nearly 75% would pay more for a neighborhood known for friendliness and engagement. Gen Z and Millennials place the highest premium on community, with more than 70% willing to pay extra for it.

• Safety and convenience remain non-negotiable – Safety is a priority for nearly 80% of buyers. Meanwhile, proximity to work and other important locations still drives most decisions. Lifestyle perks only matter once these fundamentals are satisfied.

Our take

This shows us that buyers are motivated. Once pricing stabilizes or rates ease, we’re likely to see a meaningful wave of activity. But this also shows us that buyers are selective. They don’t want to just get a home for the sake of having a home. They also want safety, convenience, and a neighborhood that aligns with how they actually live. For agents, the opportunity lies in telling a broader story about the place, not just the property. Highlighting community connection, daily-life amenities, and long-term livability will be just as important as discussing mortgage options or price trends.

Markets poised for major growth in 2026

The latest forecast from Realtor.com shows that Northeast and Midwest metros will see the strongest price and sales gains next year. Buyers are gravitating to these markets because they offer lower entry costs, more space, and better value than high-cost coastal hubs, pushing cross-market interest and pricing momentum well above national norms.

At the same time, severe inventory shortages – many metros remain 30% to 70% below pre-pandemic levels – are keeping competition elevated despite modest improvements in affordability. 

With financially solid buyers, older housing stock, and less mortgage lock-in pressure, these markets are positioned for outsized growth and sustained demand through 2026.

Here are the major metros expected to grow the most next year, ranked by their combined percentage growth in forecasted price and sales gains.

1. Hartford, CT.: +17.1%

2. Rochester, NY: +15.5%

3. Worcester, MA: +15.0%

4. Toledo, OH: +11.9%

5. Providence, RI:+11.2%

6. Richmond, VA: +10.6%

7. Grand Rapids, MI: +10.6%

8. Milwaukee, WI: +10.5%

9. New Haven-Milford, CT: +10.0%

10. Pittsburgh, PA: +9.7%

Our take

That data continues to tell us that the story of 2026 won’t be about explosive national growth, but concentrated opportunity. The metros leading next year’s forecast share a rare combination of affordability, strong buyer profiles, and chronically tight supply. Those conditions reliably produce appreciation. For agents, the play is to guide clients toward markets where value still compounds and competition remains steady, even in a slower macro environment. These aren’t just the markets to watch; they’re the markets where smart buyers will quietly build the most equity

Agents, you have a choice. Keep sending your clients market reports they'll never open, or use Altos to send them beautiful, highly engaging insights on the market that are designed to win more listings.

Schematics

The news that just missed the cut

• The simplest and most effective way to handle real estate objections

• Fully furnished homes are in demand at the high end of the market 

• The state hit the worst by foreclosures

• Why it’s a tough time for house-flippers

• Toll Brothers leans into luxury to navigate homebuilding headwinds

Foundation Plans

Advice from James and David to win the day

In our latest episode of our podcast Rise Above the Ranks, we sit down with Chris Heller, former CEO of Keller Williams and current CGO of OJO Labs and Lower Mortgage. He has been at the forefront of major industry shifts, constantly driving innovation at the cutting edge. Few leaders have been closer to the industry’s major inflection points.

In a powerful and wide-ranging conversation, we discuss where real estate is headed and what agents can do to stay ahead, especially with regard to AI. Chris breaks down how AI is becoming a competitive advantage, not a threat, and why efficiency will separate the winners from the ones who get left behind. Here are some of the themes we cover:

1. Use AI to drive true efficiency, not tool clutter – AI is reshaping how brokerages and agents compete. The agents who win will pair real technology leverage with real relationships. Brokerages face commission compression and intense competition for a limited pool of agents. The survivors will use AI to cut operational drag—lead routing, follow-up, support, and compliance—so every dollar and hour goes further.

2. Unlearn last-cycle tactics and narrow your focus – What worked in the last market often fails in this one. Adopt a short memory for old tactics, time-block your core activities, and reserve a specific, limited window to test new tech instead of chasing every newfangled thing that comes along.

3. Let tech buy back time for real relationships – AI and automation will handle more mundane tasks, but they cannot replace trust. Use technology to free yourself for higher-quality conversations, deeper follow-up, and meaningful, ongoing relationships—not just “database + drip.”

4. Lead by example and always explain the “why” – In times of constant change, agents and staff need clarity more than slogans. Model the behavior changes you’re requesting, communicate why you’re changing those behaviors, and connect every shift to a clear vision of where the organization is headed.

We always learn a ton from Chris, and we think you will too. Watch and share it widely.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

That’s it for this edition of the Blueprint!

Remember: each day is a gift and a new opportunity to lead the life you want and to become the person you want to be. The mistakes and missteps you’ve made in the past don’t define you. Live as intentionally as you can and be ruthlessly focused on the goals you’ve set out to achieve. Choose to live the life you want.

Have a fantastic weekend, and we’ll see you back here on Tuesday!

- James and David