2026 RE Market FAQs

Real Estate Market FAQs

There is a lot to know about the real estate market, and it changes constantly. That’s why it’s common for real estate professionals to get questions about the market from those looking to buy or sell, or even about specific properties. Here are a few:

Will Housing Prices Go Down Anytime Soon?

House prices, like all goods & services, are based on supply & demand. If demand is high with low supply, as it has been for a while now, it’s a sellers’ market and prices are unlikely to come down. This sellers’ market will continue to be until more properties enter the market and outpace buyers’ demand.

Other factors that are affecting the supply of active listings include:

• Interest rates. Nearly 75% of homeowners that carry a mortgage have an interest rate of less than 5%, which makes it less likely that they will want to sell their homes and give up their low interest rate.
• High costs of building new housing. This includes the costs of government regulations and building materials.
• Local economy. Housing prices can depend on local population growth and employment rates and opportunities.

You can view the latest housing stats for Maryland and local counties from Maryland REALTORS® to get an idea of what the supply and demand look like in your area.

Consult a local real estate professional for market information and insights where you want to live to see what the market conditions are there.

How Much Money Will I Need to Buy a House?

The money required to purchase a house depends on several factors.

Downpayment

While some loans still require a 20% down payment, many loan programs for first-time buyers require down payments as low as 3 or 3.5%.

Others, like VA or USDA, have no down payment requirement at all. Instead, these programs have requirements like military service and rural location of the property.

Some lower downpayment programs have requirements including income maximum limits and homeownership classes, so not all borrowers will be qualified. Talk to your lender about what programs you might qualify for.

Closing Costs

Other costs of purchasing a house includes:

• Transfer and recordation taxes
• Real estate taxes
• Real estate agent compensation (if you use representation)
• Attorney & title fees
• Lender fees for processing the loan

Your rule of thumb for closing costs above the down payment is 2.5 to 5% of the cost of your home, depending on location and lender fees. Your lender will be able to estimate the amount needed to close based on where you are looking and your home price point.

Prepaids

There are some costs you will need to pay for before you get to settlement, referred to by lenders as ‘prepaids.’ These costs include your home inspection, any specialty inspections you may need, like well and septic, and your appraisal costs.

These costs vary based on the type of home you are buying and the location of the home. A standard home inspection can cost anywhere from $400 up to $1,000, depending on the property. Appraisals have a similar range.

Are Sellers Willing to Help with Closing Costs or Paying My Buyer’s Agent?

In a seller’s market (defined as less than 4 months of inventory), sellers are less likely to negotiate on price, offer to pay buyer’s fees, or make repairs to the property. Because there are usually multiple buyers putting in offers on the same property, the seller can choose the offer that is best for them.

However, even in a strong sellers’ market, there can be openings for buyers to receive assistance. You and your real estate professional can develop a negotiation strategy based on your needs.

Are Interest Rates Going to Come Down?

This is a question no one can answer with certainty. Some buyers try to ‘time’ the market and wait for rates to come down.

Assuming they guess correctly, buyers may get a lower rate. However, this must be balanced by any increase in housing prices while they were waiting, and the number of other buyers who have also chosen to enter the market due to interest rate declines.

A lender will be able to give you a better understanding of where they’re expecting rates to go in the near future and what options you may have for refinancing your loan should rates decline over the longer term. But remember, interest rates are only one part of a home purchase; you should look at all factors to determine if the time is right for you to buy.

More Questions?

Questions are part of every home journey. Working with a real estate professional who knows your local market can help give you the most accurate understanding of what kind of market you’re entering and the strategies you may be able to use to find your next home.