🌟 Is the Housing Market Quietly Rebounding? Here’s What’s Really Happening in 2025

And What It Means for 2026 Buyers & Sellers in Jefferson County, WI

By Chris Nash, Broker | Century 21 Integrity Group – Jefferson, WI

After several years of elevated mortgage rates, affordability challenges, and hesitant buyers, the housing market is finally showing real signs of life again. Here in Jefferson, Fort Atkinson, Watertown, Janesville, Oconomowoc, Reeseville, and surrounding communities, momentum is building beneath the surface.

No, it’s not a boom.
No, it’s not 2021 all over again.

But it is the beginning of a shift — one that could set the stage for a stronger, more stable 2026.
Let’s break down the three major trends driving this comeback. ⬇️

1. 📉 Mortgage Rates Are Easing — and Buyers Are Noticing

Mortgage rates will always rise and fall with economic conditions, but the overall trend in 2025 has been encouraging:

👉 Rates have been gradually trending downward for most of the year.

We’ve now seen some of the best rates of 2025, which is improving affordability little by little.

According to Sam Khater, Chief Economist at Freddie Mac:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year…” 💡

Even a small rate dip can mean big changes in purchasing power.
Redfin reports that a buyer with a $3,000 monthly budget can now afford about $25,000 more home than they could one year ago. 🏡💰

That boost is already pulling more buyers back into the market.

2. 🏠 More Homeowners Are Finally Ready to Sell

The “rate-lock effect” has kept millions of homeowners from moving. Trading a 3% mortgage for a 6–7% rate has understandably made many freeze in place.

But that’s shifting in 2025:

✨ Life changes are outweighing rate concerns
✨ Rates are easing enough for some to reconsider moving
✨ Inventory is building — and fast

According to Realtor.com, the number of active homes for sale has climbed to levels not seen in nearly six years. 📈

This is great news for the market:

✔ Buyers finally have more options
✔ Sellers face less competition than in a spring surge
✔ The market is gradually rebalancing

In Jefferson County and nearby areas, this increase in inventory is helping stabilize prices and improve opportunities on both sides of the transaction.

3. 🔄 Buyers Are Re-Entering the Market — Quietly but Steadily

It’s not just sellers waking up.

More buyers are dipping their toes back in, encouraged by:

📉 Better affordability
🏡 More inventory
🔁 Slightly improved rate environments

The Mortgage Bankers Association (MBA) reports that purchase applications are up year-over-year, signaling growing demand. 📊

And leading analysts — including economists from:

• Fannie Mae

• MBA

• NAR

all forecast steady, moderate sales growth heading into 2026.

This isn’t a rush.
But it is a recovery.

And a stable recovery is exactly what our market needs.

📌 Bottom Line: The Housing Market Is Turning a Corner

After a slow few years, the market is finally moving in the right direction:

📉 Lower mortgage rates
🏡 More listings
👥 Increased buyer engagement

For anyone thinking about buying or selling in Jefferson, Fort Atkinson, Watertown, Janesville, Oconomowoc, Reeseville, or the surrounding Wisconsin areas, now is the time to start planning your next steps.

2026 is shaping up to be a much more active, opportunity-rich year.

📞 Ready to Talk Strategy for 2025–2026? Let’s Connect.

Whether you’re planning to move soon or simply want to understand your options, I’m here to guide you with clarity and confidence.

Contact Chris Nash, Broker — Century 21 Integrity Group

📍 Jefferson, Wisconsin
🌐 Website: https://johncuster.sites.c21.homes/
📧 Email: cnash@sellzhomez.com