A historic collapse is underway. (Redfin confirms demand just hit 2008-level lows)

Redfin is reporting that there are 37% more sellers than buyers on the U.S. Housing Market - the widest gap on record. Suggesting we could see further downward pressure on home prices in 2026, particularly in markets like Nashville, Austin, and Denver.

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Pending home sales are still dropping in early 2026. Down 6% YoY. And many markets have an excess of listings. But prices are not dropping as much as you'd think. Some sellers are still pricing their homes high, and letting them sit on the market. In some cases they're trying to rent and sell them at the same time when you look at the listings on Zillow and Redfin.

Should you buy a house in 2026 if the sellers do decide to lower prices? Well, it totally depends on the market. Some areas are still very overvalued and have downward forecasts. Other areas are still going up. It also depends on asset type. Condos, townhouses, and home builder sites have shown price declines so far. While single-family homes have held up better.

Now that the Mortgage Rate Lock-In Effect is fading, we could see more sellers come to the market this year and into the future. Which would be good news if you're a buyer or investor waiting to buy. In this video, I walked around a gentrifying neighborhood in Nashville called Wedgewood Houston. Reventure has a downward forecast for this area due to excess inventory and days on market.
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