Momentum is Building: The Housing Market's Shift Toward 2026

The housing market in Miami and the Florida Keys is finally showing real signs of movement again. After a few slower years shaped by high mortgage rates and cautious buyers, momentum is building. Homeowners are listing again, buyers are returning, and the market is showing early strength heading into 2026.

One major reason: mortgage rates have been easing. Even with normal day-to-day fluctuations, the overall trend this year has moved downward. That shift matters for buyers. Lower rates mean improved affordability and stronger buying power. According to recent Redfin data, a buyer with a $3,000 monthly budget can now afford about $25,000 more home than last year. That increase is helping buyers in Miami, Key Largo, and the Upper Keys re-enter the market.

Inventory is also improving. More homeowners are choosing to sell as rates ease and life changes push moves forward. Realtor.com reports that active listings are climbing toward levels we haven’t seen in nearly six years. For buyers, that means more choice and less pressure than in the ultra-tight markets of recent years.

At the same time, demand is building again. The Mortgage Bankers Association notes that purchase applications are up compared to last year, and experts from Fannie Mae, MBA, and NAR all expect moderate but steady sales growth through 2026.

For Miami and Florida Keys buyers and sellers, this means the market is slowly returning to balance. As a real estate agent with The Selling Properties Group powered by LPT Realty, I’m seeing more activity, more opportunity, and more confidence across our local market.