Expert Forecasts Point to Affordability Improving in 2026 for South Jersey Homebuyers
Wondering what to expect from the South Jersey housing market in 2026? You’re not alone. For the past few years, affordability has been the biggest hurdle for most buyers and sellers. Many families in Medford, Audubon, and across our region have been waiting for better market conditions. The good news? Things are finally looking up.
In 2025, affordability reached its best level in 3 years. Market experts agree this positive trend will continue throughout 2026. This forecast comes from analyzing three key factors shaping our local real estate landscape: mortgage rates, housing inventory, and home prices.
Lower Mortgage Rates Are Already Here
Mortgage rates have already dropped from their peak. They’ve fallen almost a full percentage point over the past year. This decrease makes a huge difference for buyers in towns like Woolwich and Marlton. But how much lower will rates go? Should you wait for further drops?
Forecasts suggest rates will stay near current levels, hovering in the low 6% range throughout 2026 (see graph below):
Future rate movements depend on economic conditions, job market strength, and Federal Reserve policy changes. The important takeaway is rates are already lower than last year. This creates great opportunities for South Jersey buyers and sellers planning a 2026 move.
- For buyers: Lower rates mean smaller monthly payments and stronger buying power. This helps more families qualify for homes in desirable areas like Medford that previously felt out of reach.
- For sellers: Rates in the 6% range appear to be our new normal. If you need to move, it’s completely doable, especially with your built-up equity.
More Housing Options Are Coming to South Jersey
In 2025, available homes for sale increased by about 8-22% (depending on county). This inventory growth gave buyers things they hadn’t enjoyed in years: choices, time to consider options, and negotiating power.
The inventory boost also helped slow price growth in towns across the area. This combination creates better affordability for local buyers.
While this year’s inventory gains won’t be quite as dramatic, experts at Realtor.com predict the supply of homes for sale should grow by another 8.9% in 2026.
- For buyers: Expect even more choices and stronger negotiating leverage when shopping in areas like Cherry Hill and Williamstown.
- For sellers: Setting the right price will be crucial to attract serious buyers in this more balanced market.
Home Price Growth Slowing to a More Reasonable Pace
With more homes available, there’s less upward pressure on prices. We’ve seen this play out in South Jersey over the past year. Even so, most experts predict prices will continue rising nationally – just more slowly. On average, they forecast prices will increase by 1.6% in 2026 (see graph below):
This steady growth contradicts social media claims about prices crashing. What’s most important to understand is that conditions vary significantly by location.
Our team tracks conditions town by town across South Jersey. Some local markets like Sewell and Marlton may see prices rise more than the national average. Others could see slight decreases. It all depends on neighborhood-specific factors.
Nationally, prices will continue their upward trend. This creates stability in the market. As Realtor.com explains:
“For homebuyers and sellers, the shift signals a more balanced market-one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers.”
- For buyers: Expect more predictable, moderate price increases rather than the sudden spikes of previous years. This makes budgeting much simpler for South Jersey homebuyers.
- For sellers: This controlled growth maintains market balance without risking your hard-earned equity. That’s a win for homeowners across our region.
More Homes Will Sell Throughout South Jersey
All these factors create better affordability in 2026. This explains why experts predict more homes will sell (and more people will buy) this year.
As Mischa Fisher, Chief Economist at Zillow, says:
“Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026.”
More South Jersey residents will finally have the opportunity to make their move this year. Will you be among them? The market is offering chances we haven’t seen in quite some time. It might be the perfect moment to take advantage of these conditions.
Bottom Line
Affordability won’t improve overnight. However, with several key trends working together, we expect steady improvements throughout 2026.
For South Jersey homebuyers and sellers, this means a market with more balance, more predictability, and more breathing room than you’ve had in years.
Want specific information about opportunities in your local neighborhood? Looking for insights about your specific town?
