Ivy Zelman, executive vice president of Zelman & Associates, recently offered her key takeaways on the current state of the market. Her first national TV debut was with Diana Olick on CNBC. In her analysis, Zelman discussed the future of home prices, mortgage rates, and regional trends, offering a comprehensive outlook for the housing industry.
In the segment, Zelman addressed where mortgage rates stand today and why. He noted their tremendous impact on housing affordability and on buyer decision-making. She noted that rates have been going up and down in recent months. Still, she predicts a steady uptick over the next few months. The anticipated jump may temper new home sales. Indeed, prospective purchasers are bound to rethink what they can afford as borrowing costs jump.
Zelman then dove deeper into her forecast for home prices. She predicted a price decline for single-family homes in 2026, followed by recovery in 2027. This dramatic change can be explained by multiple market influences, such as market-wide economic conditions and shifts in buyer demand. Zelman said the expected decline could create new opportunities for first-time homebuyers. These new buyers may have previously felt shut out of the market by high prices.
Beyond national trends, Zelman spoke to local, regional real estate activity. The new higher mortgage rates won’t hit all regions of the country equally, she stated. These market dynamics will be huge factors in this change. Some areas could see massive price changes. This could be due to changes in the local economy or shifts in where people choose to live and commute from.
Zelman’s analysis goes to show just how convoluted the relationship between mortgage rates and housing prices can be. Perhaps more importantly, it drives home the need to understand local variations in the housing market. Her expertise makes clear what to expect on behalf of buyers, sellers, and investors. With an intensely data-driven approach, she’s been able to help them thread the needle in today’s dynamic and shifting housing market.