How Redfin’s 2026 Housing Forecast Could Be Good News for Appraisal Companies in Chicago
Redfin recently released its big 2026 housing outlook — calling the upcoming year “The Great Housing Reset.” Instead of another roller-coaster year, Redfin expects something most buyers, sellers, and real-estate pros have been craving: a slow, steady return to normal.
Source: Redfin 2026 Predictions
Mortgage rates should ease a bit, home prices may grow at a more manageable pace, and more people are likely to list their homes again after sitting out the past few years.
For a market like Chicago — known for being steady even when other cities swing wildly — this could be a welcome shift. And for appraisal companies in Chicago, 2026 may actually bring a healthier, more predictable business environment.
Let’s break down what Redfin is forecasting and how it could play out locally.
1. Slightly Lower Rates Could Bring Buyers Back
Redfin expects mortgage rates to edge down to around 6.3% in 2026. It’s not the ultra-low pandemic era anymore, but it is enough to get some buyers off the sidelines.
More buyers → more purchase contracts → more appraisals.
It’s that simple.
After several quieter years, a little extra movement in the market could feel like a breath of fresh air for local appraisers.
2. More Homes Hitting the Market Means Better Comparable Sales
One of Redfin’s biggest predictions is that more homeowners will finally be ready to sell. When inventory opens up, pricing becomes more consistent — and that’s great news for appraisers.
Chicago’s neighborhoods each move to their own rhythm, and some areas have been tough to comp due to low sales volume.
More listings create clearer, more accurate comparables, which helps appraisal companies in Chicago produce stronger, more data-driven valuation reports.
3. Chicago May Outperform Markets That Boomed Too Fast
Redfin notes that some Sun Belt markets may still experience turbulence after rapid growth. Chicago, on the other hand, has remained steady and relatively affordable. Buyers who want stability may give Chicago a second look — especially if affordability improves.
When buyers shift toward predictable markets, we typically see a bump in appraisal orders. Chicago’s reputation for “slow and steady wins the race” may work in its favor.
4. Slower Price Growth Helps Underwriting (and Everyone’s Stress Levels)
Redfin expects home prices to grow by about 1% in 2026 — a pace that feels much more sustainable. Slower growth means fewer appraisal disputes, fewer underwriting headaches, and fewer revisions.
For appraisal companies in Chicago, that means smoother workflows and fewer last-minute “can we revisit this comp?” calls from lenders.
5. Local Appraisal Expertise Becomes Even More Valuable
Chicago isn’t a single housing market — it’s dozens of micro-markets packed into one city. Redfin’s forecast highlights that 2026 will still be a transitional year, and when markets shift, lenders and buyers rely heavily on local experts to make sense of pricing.
That’s where Chicago appraisers shine.
Deep neighborhood knowledge is going to matter even more as the market reshapes itself.
What This All Means for Chicago Appraisal Firms
Putting it all together, Redfin’s predictions point to a few key opportunities:
- More purchase activity → more appraisal orders
- More listings → better comps and smoother valuation work
- Stabilized pricing → fewer underwriting conflicts
- Chicago’s steady market → potential increase in buyer demand
- Local expertise → stronger partnerships with lenders
If Redfin’s forecast holds true, 2026 could mark the beginning of a healthier, more predictable environment — not just for buyers and sellers, but for appraisal companies in Chicago as well.