What to Expect in Q3 & Q4!

Housing Market Updates! TAYLOR LAMBERT June 25, 2026

The market welcomed our new Fed Chairman, Kevin Warsh, last week. His first meeting was a nothing-burger event; however, recent Fed minutes showed the majority favored 1 potential rate hike this year. Nothing has been solidified yet, so don't worry. Since then, Bank of America speculated that there will be 3 rate hikes this year. And to that I say hah! Very unlikely in the midterm year.

Here's what we know so far. Rates are higher than they used to be 6-8 months ago. In consideration of this, Redfin reported that sellers are pulling their homes off the market at a near-record rate. Nationwide, 5.8% of all U.S. home listings were taken off the market in April. In San Jose, de-listings rose to 9.3%. Meanwhile, the average sales price in the first half of 2025 vs. 2026 is barely showing any huge difference. However, if you've been touring for over 2 months, you probably feel everything is slowing down, right? Pretty typical, summer you usually see buyers head out of town and a slower feel.

So while the next few weeks might continue to be in a funky stage, I stand by my projection that the second half of 2026 will be pretty much a repetition of 2025. This means this winding down is temporary. Buyers who are in the market right now until the later part of Summer, you most likely will get less competition than buyers later towards the end of the year. If you're a seller, it's never been more important to prep and market your house correctly if you are selling now, those homes are still moving at premium prices. I believe the speculation from Bank of America will not come to fruition. Instead, we might get a cut (might come with a small hiccup), and prices will slowly pick up due to limited inventory towards the rest of 2026.