2025 Recap - What's Next?

Happy 2026 to you all.   We wanted to provide a quick year-end wrap-up for Bucks County and then turn the corner and talk about the current outlook for this year.  This past year concluded with both Active and New Listings down and Months of Inventory slightly down from November but slightly higher than the end of 2024.  So overall, supply is stable and healthier than a year ago.  Lower supply at this time of year also reflects a normal year-end cycle because of expired listings and new sellers preferring to wait until the spring.

Median Days on Market (DOM) has risen to nearly 60 days - which is considered in the industry as a balanced market.  Significantly below 60 would is a seller market, which we saw in the spring and summer of last year, and significantly above 60 indicates a stronger buyer market.

So what do we see going forward in 2026.  In summary, after almost a 1 point decline in 2025, we see mortgage rates continuing to hover in the low 6% area.  That, coupled with projected home price increases that are more aligned to the inflation rate, make housing more affordable than through most of 2025 as well as the first few post-pandemic years.

2026 is projected to be a year where both buyers and sellers have more breathing room.  Buyers will benefit from more inventory and improved affordability.  And sellers will see price stability and more consistent demand.

In Bucks County, and in the Northeast in general, home prices will continue to increase modestly at about 2-4%.  Some other regions may actually experience a slight price decline.  

Also, Bucks County homeowners have built up more equity than the national average over the past 5 years.  We see this creating more incentive for downsizers to finally make the move in 2026 despite their current lower mortgage rate since they may likely be able to avoid a future mortgage in their next home purchase.

All in all, we see a healthier 2026 and we hope you experience the same in your own personal lives.  As always, we are here if you or someone you know ever wants to talk about your buying or selling needs.