ICYMI: PMA's Market News Update

Greater Philadelphia Will Be Among Hottest Housing Markets for 2026, Zillow Predicts

Greater Philadelphia ranks in the top ten hottest housing markets for 2026, according to Zillow’s recently released annual forecast, writes Ryan Mulligan for the Philadelphia Business Journal.

The analysis evaluates the nation’s 50 most populous metro areas using an index based on projected home value appreciation, time homes spent on the market last year, the ratio of new jobs to residential permits, and the expected change in owner-occupied households from last year to this year.

Homebuying and Selling Activity Show Signs of Life

U.S. pending home sales fell 2.9% year over year during the four weeks ending January 18, the smallest decline in over a month, as mortgage rates declined. Mortgage-purchase applications rose 5% week over week to their highest level in three years.

New listings followed a similar pattern as pending sales: They dipped 1.6% year over year, the smallest decline since November.

The slight improvements in homebuying demand and home listings are largely the result of falling mortgage rates.

Home Sellers Outnumber Buyers By a Record Margin

There were an estimated 47.1% more home sellers than buyers in the U.S. housing market in December (or 631,535 more, in numerical terms)—the largest gap in records dating back to 2013. That’s up 7.1 percentage points from a month earlier—the largest monthly increase since September 2022—and up 22.2 percentage points from a year earlier.

We define a market where there are over 10% more sellers than buyers as a buyer’s market and a market where there are over 10% fewer sellers than buyers as a seller’s market. A market where the gap is plus or minus 10% is considered a balanced market. By this definition, it has been a buyer’s market since May 2024.

Existing Home Sales End 2025 with a Strong Beat, as Prices Ease Further

Sales of previously owned homes in December rose to a seasonally-adjusted, annualized rate of 4.35 million units, a 5.1% increase from November, according to the National Association of Realtors. That was higher than analysts’ expectations for a gain of 2%. Sales were 1.4% higher than a year earlier.

For the full year, there were 4.06 million existing home sales, unchanged from 2024.

Pending Home Sales Fell Unexpectedly In December

Pending home sales slipped unexpectedly in December as low inventory dampened the spirits of buyers who were willing to take the economic risk of investing in real estate.

NAR’s Pending Home Sales Index fell 9.3% month-over-month and 3% year-over-year. Analysts had expected an increase in inventory as mortgage rates trended down. All four regions registered declines month-over-month.

New Home Sales Jumped In December

New home sales data from the Mortgage Bankers Association and the Census Bureau reveal a stark difference in activity from fall to winter 2025.

Recently released Census Bureau data for October 2025, delayed by last year’s government shutdown, shows a seasonally adjusted annual sales rate of 737,000 new single‑family houses, holding relatively steady from September’s 738,000.

Available inventory at the end of October was 488,000, a 7.9-month supply.

How Has Rentership Changed from 2000 to 2024?

Over the last 25 years, renting trends in the U.S. and Pennsylvania have fluctuated. Here are some key takeaways from Point2Home’s report, “A Quarter-Century in Renting.”

Rentership in 2000 vs. 2024

In 2000, the rentership rate was 33.80% – nearly identical to 2024’s rate of 34.73%, according to Point2.

Despite the close rates, approximately 10.4 million new renter households have been added since 2000, accounting for a 29.3% increase. In comparison, homeownership only saw a 24% increase.

7 Home Design Trends for 2026

What home design trends are in store for 2026? Here are seven that are predicted by Zillow and Martha Stewart (and four that may be on their way out).

1. Personalized Touches

Zillow predicts homeowners will embrace personalized home features, as listings on their site are increasingly mentioning “artisan craftsmanship” (up 21%), “vintage accents” (up 17%) and “whimsy” (up 15%).

I hope you enjoyed this Market News Update. For more information about how I can help you, please contact me.

Angela Tobin

Vice President, Senior Mortgage Advisor

NMLS# 133633

phone: 215.620.4531

atobin@phillyadvisors.com

www.atobin.phillyadvisors.com

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Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the State of DE, the Florida Office of Financial Regulation and MD Mortgage Lender #23004. NMLS #128570.