In the wake of a quiet holiday season, January started with a flurry of market activity. Interest rates at around three-year lows and stabilization are supporting offer activity across the board, whether entry-level, move-up, or even luxury and uber-luxury properties. Although there were concerns about a rapid increase in supply to kick off the year, current levels of product volume are nothing extraordinary. Properties are in demand, and sellers who price right and pair their properties with meaningful marketing are receiving interest and offers from buyers.
Earlier this week, the Federal Reserve held rates at the same level for the first time since July 2025. While that may come as a disappointment for buyers hoping for lower mortgage rates, it also staves off potential inflationary impacts in the market. If history serves as a guide, lower rates could result in additional appreciation and cancel out any affordability benefits.
From December 2025 to January 2026, the supply-demand index increased from 84.1 to 88.9, with the supply index down from 101.0 to 93.7 and the demand index rising from 85.0 to 88.9. The overall index is close to balance but has stalled just before breaking the barrier, giving buyers a little more time in a buyer’s market. Mortgage rates have now remained stable for 5 months straight, but optimism for more demand is being tested. There are signs that better days are ahead as Mortgage News Daily reported the index that measures mortgage purchase applications is up 156% over this time last year. The time between applying for a mortgage and closing on a home can be 2–3 months, depending on whether the applicant needs to sell an existing home first or if it’s still in the process of being built. Patience and time is still the top advice as spring approaches.
You can read all the details in the R.O.I. Properties “Real Estate – Residential” newsletter, with additional statistics, market trends, and information.
Originally shared via roiproperties.com. Click here to read the full newsletter.