Looking forward to 2026, I’m keeping an eye on these three “I’s”: interest rates, inventory, and impressions. With interest rates dropping below 6% in the second week of January, there is renewed hope that many buyers will come to the market, especially since economic indicators suggest that, if anything, rates will not climb and will more than likely stay stable or slightly decline over the next year. If rates drop enough, more buyers will flood the market, increase competition and bring prices up. This could also bring more sellers to the market to take advantage of demand, offload their homes and move up. Additionally, lower interest rates may give some homeowners the ability to refinance out of 7%+ rates to make their payments more affordable. Next, increased inventory was a major factor in 2025, with many lingering listings bogging down the market during months of tepid demand. Many homes that did not sell by the end of the 4th quarter were pulled from the market during the holidays to breathe and reset. My apprehension is that many of these “zombie listings” will return in the first quarter and bog down the market, once again, as buyers sift through inventory. My hope is that demand will be strong enough to meet this increased inventory. If not, it could keep prices from edging upwards throughout 2026. Lastly, impressions are key – meaning interest from buyers. Many buyers over the last 2-3 years have been fence-sitting, either waiting for prices or interest rates to come down to help with affordability. Since it does not appear that prices will retreat in Fort Collins, the hope is that buyers will see the improved affordability from sub-6% interest rates as their opportunity to jump in. Buyer demand was very scattered and unpredictable in 2025 and it would certainly improve the mental health of all real estate professionals if there was some stability with our buyer demand. Fort Collins remains a very attractive destination for all segments of the population, from recent college graduates to retirees, which has kept this market strong and stable through uncertainty. 2026 may be the year that our recent stability turns into continued strength.