As we kick off 2026, the housing market looks noticeably different than it did this time last year, and in a good way for buyers who are paying attention.

Mortgage rates are lower than they were throughout much of 2025, and buyer competition has cooled compared to the frenzy we saw during the past few years. That combination does not come around often, and it’s creating opportunities that many buyers assumed were gone for good.

Let’s break down what’s happening and why it matters if you’re thinking about buying a home this year.

Rates Are Down From 2025 Levels

Throughout most of 2025, buyers were dealing with elevated interest rates that stretched monthly payments and reduced purchasing power. While rates still move day to day, we’ve entered 2026 with meaningfully lower average mortgage rates than what buyers faced just a year ago.

What that means in real terms:

  • Lower monthly payments
  • More buying power at the same payment
  • Greater flexibility in choosing loan options

Even a small drop in rates can have a big impact over the life of a loan. For many buyers, this alone is enough to bring homeownership back into reach.

Buyer Competition Has Cooled

At the same time rates have improved, buyer demand has slowed compared to recent years. Fewer buyers are out shopping aggressively, which has changed the tone of the market.

We’re seeing:

  • Fewer multiple-offer situations
  • Homes staying on the market longer
  • Less pressure to waive inspections or contingencies

This doesn’t mean homes aren’t selling, but the power dynamic has shifted closer to the middle, and in many cases, toward buyers.

What This Means for Concessions

One of the biggest advantages of a softer market is seller concessions.

In 2026, buyers are increasingly able to negotiate:

  • Seller-paid closing costs
  • Interest rate buydowns
  • Repair credits after inspection

In a highly competitive market, these conversations rarely happened. Today, they’re back on the table, and they can significantly reduce the cash you need at closing or lower your payment even further.

This is where strategy matters. Knowing how to structure an offer that benefits you without scaring off a seller is key.

Home Prices Are Stabilizing in Many Areas

While home prices haven’t collapsed, they have stabilized or softened in many markets. Sellers are more realistic, and price reductions are no longer rare.

Instead of bidding wars driving prices above asking, buyers are often:

  • Negotiating closer to list price
  • Avoiding escalation clauses
  • Taking time to evaluate homes rather than rushing

For buyers who felt priced out over the past few years, this slower pace can be a major advantage.

Bidding Wars Are No Longer the Norm

In 2025, it wasn’t uncommon to compete with five, ten, or even more offers on a single home. In early 2026, bidding wars still happen, but they’re far less common.

That means:

  • More thoughtful decisions
  • Less emotional pressure
  • Better overall outcomes for buyers

When competition cools, preparation matters more than speed, and that’s good news for buyers working with the right team.

Why the Right Team Matters More Than Ever

This type of market rewards buyers who are properly prepared, and that goes beyond just financing. Having experienced professionals on your side can make a meaningful difference in both finding the right home and negotiating the right terms.

At BrightSide Lending, we don’t just handle the mortgage. We also work closely with a trusted network of experienced local realtors who understand today’s market, know how to spot opportunities, and know when and how to negotiate.

That coordination allows buyers to:

  • Identify well-priced homes faster
  • Structure stronger, smarter offers
  • Navigate inspections and concessions confidently
  • Avoid overpaying while staying competitive

Thinking About Buying in 2026?

Lower rates and reduced competition don’t last forever. Markets shift, demand returns, and opportunities close quickly once buyers rush back in.

If you’ve been waiting for a smarter time to buy, early 2026 may be that window.

Whether you’re just starting to explore or ready to make a move, BrightSide Lending and our network of experienced real estate professionals are here to help you navigate the market with clarity, confidence, and a strategy that puts your financial future first.

Reach out anytime to start the conversation.