Greg Dwornikowski on Real Estate

With the turning of the page on another year, homeowners and aspiring homebuyers alike are wondering what 2026 will bring with respect to buying, selling, and financing. There are lots of questions swirling around the topics of ongoing economic strength, inflation, and interest rates—all of which impact decisions people make about their real estate moves.

MAKING SENSE OF MORTGAGE RATES

Mortgage rates are currently hovering around 6.1%, the lowest in the post-COVID era. While that may seem like news to applaud, it’s noteworthy that many homeowners bought or refinanced during the pandemic, when the Federal Reserve significantly lowered interest rates to stimulate the collapsed economy. As a result, a vast proportion of homeowners have mortgages in the 3% range. To them, the idea of making a move to a new home and obtaining a new mortgage in the 6% range seems unpalatable. This has been a major factor in our real estate market, as many discretionary sellers have chosen to stay put in their current home with their current low-rate mortgage. As a result, the supply of homes for sale has remained suppressed, and when matched with steady demand, price levels have risen notably. This can seem counterintuitive, since historically, higher mortgage rates translate into lower housing prices. Not the case now.

DON’T WAIT TO LIST

The listed volume of for-sale real estate in Upper Makefield Township was $15 million in November 2023, $13 million in November 2024, and only $9 million in November 2025. The total listed volume during March, April, May, and June 2025 averaged around $30 million each month. With listed volume now being only one-third of what it was a few months ago, every home on the market gets more visibility due to the reduced competition. If you are ready to sell now, list now—there’s no need to wait until your mulch gets delivered in the spring.

WAIVING HOME INSPECTIONS

We continue to see the greatest demand for well-priced, well-maintained, and updated homes. In multiple offer situations, we often find the key to bidding success being a cash offer with the inspection contingency waived. While realtors advise that getting a home inspection is always in a buyer’s best interest, the waived inspection contingency is often the key to landing a winning bid. However, this decision depends on the nature and condition of the property and the risk tolerance of the buyer.

MANAGING MARKET UNCERTAINTY

Lots of questions remain as to what 2026 will bring for our residential market. Interest rates aren’t expected to move downward significantly, and the constrained market conditions are expected to continue. The best advice is to consult with a capable, experienced realtor to help you formulate a winning strategy for achieving your objectives.

A resident of Washington Crossing, Greg Dwornikowski is a luxury real estate agent at Addison Wolfe Real Estate and has an MBA in finance and real estate from the Wharton School of the University of Pennsylvania.