January 2026 Market Update

Bloomington-Normal Housing Market Update: What’s Really Happening in Early 2026

The housing market has shifted — both nationally and here in Bloomington-Normal — but not in a dramatic or scary way. Think of it less like a sudden turn and more like easing off the gas after years of full speed ahead.

What’s Happening Nationally

Across the U.S., the market is settling into a more balanced rhythm:

• Homes are taking longer to sell than they did during the peak frenzy

• Buyers are being more cautious and price-conscious

• Prices are mostly holding steady, but rapid appreciation has slowed

This shift is giving buyers time to think — and pushing sellers to be more strategic.

What That Looks Like Locally

Bloomington-Normal is following a similar path, but with its own local flavor:

• Homes are selling for about 97.5% of list price, compared to 100%+ for much of 2025. Buyers are negotiating again, but strong pricing is still achievable.

• Median days on market is 13 days, up from 9 days last year. Homes are still selling quickly — just not instantly.

• Inventory remains very low, which continues to support home values.

• Median sale price ended 2025 at $236,000, down from a peak of $292,000 in early 2024. This drop reflects more lower-priced homes selling — not falling home values. That stability is backed up by how close homes are selling to their original list price.

What We Expect Next

We anticipate a seasonal increase in activity over the next 60 days, which is typical as we head toward spring. However, the market has changed:

• Sellers must be realistic about price and condition

• Buyers are using more logic and less emotion

• Multiple-offer chaos is no longer the norm

With supply still tight, demand remains — but this is no longer the ultra-aggressive seller’s market of the last five years.

We’re also watching price reductions and how long homes sit on the market, as those trends often signal changes in buyer confidence before headlines do. Buyer activity slowed in late 2025, making early 2026 an important indicator of what’s ahead for Bloomington-Normal.

Bottom Line for Everyday Buyers & Sellers

For Sellers:
✔ Still a solid market.
✔ Homes that are priced correctly and well-maintained are selling.
✔ The “list it and wait for over-asking offers” strategy no longer works.

For Buyers:
✔ You may have more negotiating power than in recent years.
✔ Choices are limited, but opportunities exist for prepared buyers.
✔ Logic and timing matter more than emotional decisions.

The 2026 market feels more balanced — and that’s a healthy place to be.