Michael Eisenga, CEO of First American Properties, forecasts a significant downturn in U.S. home prices: a 9% decline in 2026, followed by a cumulative 25–45% drop in the years ahead. This “structural correction” stems from elevated inventory, soft spring sales, and rising mortgage delinquencies—signaling more than a temporary pullback.
A surge in listings, a multi-year rise in delinquencies, and distressed selling may soon weigh heavily on prices. Eisenga recommends buyers delay purchases or bid low, while sellers should adjust expectations and brace for longer time on market amid persistent headwinds.
Although Eisenga cautioned this isn’t a repeat of 2008, he believes home values are entering a sustained correction.
Buyer and seller behavior alike must evolve to meet this new normal—embracing patience, flexibility, and clear market insight.
Unchecked inventory and soft demand are red flags. Unless offset by policy changes or renewed affordability, housing may remain under pressure. Buyers gain leverage, sellers face urgency—with uncertainty as the new baseline.
This looming reset could reshape housing norms nationwide. For unaffordable markets craving balance, it may bring relief. But for stakeholders lacking flexibility, the coming years may test even the most seasoned real estate strategists.
