Zillow's New Forecast: 2026 Home Values Nearly Flat — What Buyers Should Really Take Away

Zillow just released its June 2026 forecast titled "The 2026 Home Buying Season's Fork in the Road" — and the headline number is a projected 0.1% national home value growth for the entire year. That may sound alarming, but for a smart buyer, it's actually great news. Megan Huynh explains why (see the full report in U.S. Housing Market June 2026).

1. Why Did Zillow Cut Its Forecast?

Sales growth has slowed sharply — from 5.5% year-over-year at the end of Q1 to just 0.8% in the June estimate. The main driver was mortgage rates climbing back up in Q2, pausing many buyers' plans. Zillow expects home values to stay nearly flat through 2026 if rates hold in the mid-6% range.

It's worth remembering that this "flat" projection is a national average — actual results by metro, and even by neighborhood, can vary quite a bit. Markets that ran hottest during 2021-2023 (some corners of the Sun Belt and Southwest, for example) tend to see mild corrections as they rebalance, while areas with tighter supply and steady demand — much of the Southeast, including metro Atlanta — often hold onto modest gains even in a "flat" national year. That's exactly why a national forecast alone isn't enough; you need data specific to the neighborhood you're actually targeting.

Source: Zillow Research.

2. Why This Is Actually Good News for Buyers

• No more "buy now or miss out" pressure: With flat prices, you have time to shop carefully and compare instead of rushing a decision. It's also a good window to weigh FHA vs Conventional before deciding.
• More room to negotiate: Sellers can't push aggressive pricing in a market that isn't overheating.
• Wages get a chance to catch up: Flat prices plus rising income gradually improve affordability over time.

Beyond those three points, a flatter market also helps buyers avoid the classic mistakes that come with overheated conditions: rushing into an offer out of fear of missing out, waiving the home inspection to look more competitive, or bidding above the eventual appraised value with no plan for covering the gap. When competition eases, buyers can hold onto important contract protections — inspection contingencies, appraisal contingencies — that often get waived when a market is running hot.

3. Good News for Renters Too

Zillow also forecasts single-family rents rising just 3.1% and multifamily rents 2% in 2026 — below historical norms. For families renting while saving for a down payment, this is a relatively easier window to build up savings before buying. Combined with the current wave of rental concessions (see our breakdown of nearly 40% of U.S. rentals now offering concessions), renters have more room than usual to save faster toward homeownership.

Put simply, both sides of the housing ledger — buying and renting — are cooling at the same time. That's an unusual combination, and it's worth using it deliberately: renters can bank the savings from softer rent growth, while buyers benefit from a market that isn't pricing them out. Neither condition tends to last indefinitely once demand catches up with easing rates.

4. What "Fork in the Road" Means for the Rest of 2026

Zillow's chosen title for this report — a "fork in the road" — captures the reality well: the market is sitting at a fragile balance point, and which way it tips depends heavily on where mortgage rates go over the coming months. If rates keep easing the way they did heading into June, sales could keep improving and prices could edge up a bit more than the current flat forecast. If rates climb again, a flat or even mildly negative scenario in some markets is entirely possible. Given that uncertainty, the smartest strategy isn't trying to nail the exact bottom — it's getting your finances ready so you can move the moment conditions line up.

5. How Sellers Should Adjust Their Expectations

With a nearly-flat forecast, sellers need a different playbook than in prior years. Pricing high and waiting for buyers to bid it up — the winning formula in 2021-2022 — just doesn't work in the current environment. Instead, pricing close to comparable sales from the last 30-60 days, combined with strong presentation from day one on the market, delivers far better results than listing high and drifting down through repeated cuts. That drifting pattern makes buyers question a home's real value and often ends in a lower final sale price than a correctly priced listing would have achieved.

In a flat-price market, non-price terms can also make a real difference in closing quickly and at a good number — flexible closing timelines, willingness to cover some repair costs after inspection, or accommodating a buyer's financing contingency.

6. How Megan Huynh Can Help You in This Market

As a licensed Georgia Real Estate Agent (License #305560) and a licensed mortgage professional (NMLS #2155092), Megan Huynh understands both sides of every transaction: pricing correctly with hyper-local data and structuring the loan to minimize your costs. With 22+ years of experience, 696 closed transactions, and over $288.6M in total sales value across the Georgia market, Megan compares rates across 50+ partner lenders to make sure you — whether buying or selling — get terms that fit your specific financial picture. Every consultation is available in both Vietnamese and English.

A cooling market doesn't mean sitting on the sidelines — it means buying the right home at the right price instead of chasing emotion. Megan Huynh will help you build a buying strategy that fits today's market, from choosing the right area (see our Suwanee area page) to comparing rates across 50+ partner lenders. Explore financing options on the Georgia Home Loans page, or start browsing homes for sale in Georgia today. Call 404-731-3700 now!