The U.S. housing market is expected to modestly recover in the second half of 2026, with existing-home sales and median prices projected to rise 4%. Mortgage rates are forecasted to average 6.5%. Inventory growth and overlooked buyer segments, including first-time sellers, are key factors. Homeowners may gain about $16,000 in equity, while the national median home price could reach $1 million in 25 years. Local market conditions remain highly variable.