Your Strategic Advantage

Your Strategic Advantage: The 2026 Housing Market Forecast (Barrington & NW Suburbs)

After a few years where the market felt a bit challenging for many, 2026 is shaping up to be the year the momentum shifts. As your Barrington REALTOR® and strategic real estate champion, I believe this shift is going to unlock major opportunities for buyers and sellers across the nation and our Northwest Suburbs.

Expert forecasts are pointing to a key change: more people are expected to move. For you, that means a healthier, more active market—and a clear chance to make your next move.

More Homes Will Change Hands: The Return of the Mover

For a while now, many would-be movers have been pressing the pause button due to affordability hurdles. But life happens, and people always need to move. The experts are forecasting that a significant number of these sidelined buyers and sellers will re-enter the market in 2026 (see graph below):

What's driving this positive forecast? It comes down to the two most critical factors in today's market: mortgage rates and home prices. Let's dive into the data so you can start strategically planning your move in Barrington, Lake Zurich, or Cary.

Interest Rates: The Slow Descent

The #1 factor every buyer is watching—myself included—is lower mortgage rates. After rates peaked earlier this year, we’ve seen some much-needed easing.

The latest national forecasts show this trend should continue throughout 2026, but let’s manage expectations: it won’t be a sudden crash. As the saying goes in our industry:

"There’s a saying: when rates go up, they take the escalator. But when they come down, they take the stairs."

This is key. Expect a slow, bumpy descent. We’ll see some volatility as new economic data comes out, but the big picture is a slight, downward trend.

 Forecasts suggest we could settle into the low 6s, or potentially even the high 5s.

Don't wait for rates to hit 3%. Even a small dip is a big deal for your bottom line. If you compare today's rates to the 7% peak earlier this year, you are already saving hundreds of dollars every month on your future mortgage payment. That kind of real-world difference is enough to significantly improve affordability for many buyers in the market.

Home Price Growth Will Be Moderate and Sustainable

What about prices? Nationally, experts still project a rise, but at a much more moderate pace. As rates ease, more buyers re-enter the market, and that increased demand will prevent any widespread collapse.

A major crash is simply not in the cards. Even in areas where prices have softened slightly, they are still up significantly compared to just a few years ago.

However, price trends will always be hyper-local. In the Barrington and Northwest Suburbs market, where inventory is tight and demand for quality homes remains strong, we may see appreciation levels vary based on specific local dynamics.

But the expert consensus is that national prices will continue to appreciate (see graph below):

This is great news for both buyers and sellers. It provides sellers with confidence that their primary asset will continue to grow in value, and it gives buyers a much more predictable and sustainable pace of growth. This predictability makes it easier for me to help you budget and strategize your purchase.

The Kevin Baum Advantage: Your 2026 Action Plan

After a quieter couple of years, 2026 is poised to bring increased movement and opportunity. With sales projected to rise, mortgage rates trending lower, and price growth slowing to a sustainable pace, the stage is set for a much healthier market.

My goal is not just to facilitate a transaction but to empower you to move strategically, negotiate skillfully, and achieve results that exceed your expectations.

The big question is: Will you be one of the movers making 2026 your year in the Barrington area?

Let's connect today. We can create your tailored, strategic plan to ensure you are ready to capitalize on the shifts in the 2026 housing market—whether you’re buying your first home, looking to move up, or selling your Barrington, IL home for maximum value.