By: KeyCrew Media

After a year of historically low transaction volumes, early 2026 indicators suggest the residential real estate market may be gaining momentum, according to observations from Ryan Bruen of The Bruen Team at Coldwell Banker Realty in Morristown, New Jersey.

“Just a day or two after the New Year holiday, I saw a fair amount of homes coming on the market and sellers reaching out,” Bruen reports. “From what I’m seeing both on the ground and from industry experts, I’m anticipating a more active real estate market this year than we saw in 2025.”

Inventory Expectations Shifting

Bruen anticipates meaningful inventory increases compared to recent years, though he cautions against expecting a complete market reversal. “I’m not expecting to see a giant flood of inventory that is going to completely reverse the roles and turn it into a buyer’s market,” he clarifies. “I think we’re going to see some relief from that.”

The anticipated inventory growth stems from sellers who delayed moves during 2025’s uncertainty and increased confidence in economic and political stability. “I think we’re settling into a time where there’s a little bit more stability and predictability in the political environment, the housing market, the economy, the job market,” Bruen notes. “People make moves when they have stability.”

Interest Rate Stabilization Impact

Mortgage rates hovering just below 6% represent another factor supporting market activity. Bruen reports that buyers have locked in rates at 5.99% in recent weeks, below rates throughout most of 2025.

More important than the absolute rate level: expectations for stability. “The predictions are that we won’t see drastic changes this year,” Bruen explains. “While for a home buyer that might seem like a negative, the positive is it doesn’t matter how low the rates go—if consumers think in six months those rates are going to come lower, they are potentially going to sit and wait.”

Rate stability removes the waiting game that paralyzed many buyers throughout 2024 and 2025.

First-Time Buyer Strategies

Despite anticipated market improvements, first-time buyers continue to face challenges. Bruen emphasizes realistic expectations combined with patient, consistent searching.

“Yes, it is competitive. Yes, home prices are higher than they were a few years ago,” he acknowledges. “That being said, there are opportunities out there—they’re fewer and further spaced out. The trick is patience.”

His most emphatic advice: prioritize location over property condition. “I would rather buy a house I don’t love in a town and neighborhood I really want to be in than find a house I love in a town I don’t want to be in.”

Buyers often assume they’ll upgrade from a starter home in an undesirable location once they achieve financial milestones. In practice, relocating after establishing roots proves far more disruptive than upgrading within the same community.

Competition Warning for Sellers

While increased inventory benefits buyers, it creates new challenges for sellers. Bruen strongly encourages sellers planning spring listings to accelerate their timelines.

“My biggest worry is that if they wait too long, if they wait till the height of the spring market like everybody else, they might be faced with a lot more competition than they expected,” he explains.

The seasonal pattern remains predictable: warm weather triggers simultaneous impulses among both buyers and sellers. Buyers can act immediately, but sellers require weeks or months of preparation. Properties that reach the market before the spring rush benefit from peak buyer activity with minimal listing competition.

Winter Market Dynamics

Current winter conditions reveal buyer behavior patterns that may continue into spring. “We’re seeing a good amount of people in this winter market that got their start in the fall and are still hanging around,” Bruen observes.

Both groups represent serious buyers with established motivation. “You might not get as many active people through your showings and open houses, but the people you are getting tend to be more serious about buying a home,” Bruen notes.

The combination of inventory increases, rate stability, economic confidence, and pent-up demand from 2025’s slow market positions 2026 for stronger performance. For sellers, the message centers on strategic timing: accelerate preparation to beat spring competition while capturing the market’s most motivated buyers.

Ryan Bruen heads The Bruen Team at Coldwell Banker Realty in Morristown, New Jersey, specializing in residential sales throughout Morris County. The multi-generational real estate family has maintained the #1 sales position at their Coldwell Banker office for over seven years. For more information, visit bruenrealestate.com.

Disclaimer: This article contains general information and opinions based on observations and expert insights provided by Ryan Bruen of The Bruen Team at Coldwell Banker Realty. The views expressed in this article are solely those of the author and do not constitute financial or real estate advice. Readers are encouraged to conduct their own research or consult with a professional before making any real estate or financial decisions. The content is for informational purposes only and should not be considered a guarantee of future market conditions.