Home sales in Walworth County in the last 12 months were robust, increasing 34.6%, with median prices up 4.9%. Inventory was down 11.1% and the month’s supply fell to 1.8 months (the time estimated to sell the current available inventory). In the Greater Milwaukee area, median prices rose 5.8% to $364,900, listings grew 4.7% to 2,840, and the month’s supply rose 18.4%.

The National Association of Realtors is bullish on 2026, forecasting a 14% increase in existing home sales and a 5% increase in new home sales. Fannie Mae’s Economic and Strategic Research Group sees the market picking up with a slightly more cautious forecast, with a 9.6% increase from 4 million in 2025 to 4.446 million homes in 2026. This is due to tax cuts included in the One Big Beautiful Bill Act and expected lower interest rates. As JP Morgan Chase states, “…because the IRS has not yet adjusted income tax withholding schedules in accordance with the new law, these tax breaks should show up as a bumper crop of tax refunds early in 2026.” The OBBBA also increased the SALT (State and Local Tax) deduction cap to $40,000, or $20,000 for those married filing single, boosting disposable income for higher-income households.

Loan originators Fannie Mae and Freddie Mac forecast mortgage interest rates will fall under 6% in 2026, although the Mortgage Bankers Association predicts rates will stay relatively flat. Rates have fallen substantially in 2025 from 6.91% in January to the current 6.4%. Interest rates are always difficult to predict, but the trend suggests that 30-year fixed-rate conventional mortgages will remain in the 5.5% and 6.5% range in 2026. The Federal Reserve Open Market Committee reduced interbank rates on December 10 by 25 basis points to the range of 3.5% to 3.75%, signalling a more dovish tone in future.

The US economy is strong, growing at 3.5% in Q3 according to the Atlanta Fed’s GDPNow tracker. Wages grew 4.1%, ahead of core inflation, which fell to 2.6% in November. Although fewer jobs are being created, unemployment ticked up but remains historically low at 4.6%.

Are you thinking of making a move in 2026? With more inventory, moderating prices, and lower rates, this is a great time to buy or sell. Let us help you plan ahead. Contact us today for a free, no-obligation real estate review.