The real estate market reset is imminent. Here are the 5 residential real estate stocks most worth buying right now.

Investing.com – Benchmark Equity Research has initiated research coverage for five residential real estate companies. The sector has fallen about 50% from its 52-week high after recent market turbulence.

The firm believes there is an opportunity in the sector, as after three years of lackluster transaction volumes with 4.0 million to 4.1 million existing-home sales per year, the housing market appears ready to reset.

Since March 2020, the residential real estate market has experienced significant volatility, with sharp swings in interest rates affecting homebuying behavior.

Entering 2026, the market outlook had turned more positive, with expectations that the Federal Reserve will cut rates by 50 basis points before year-end, potentially taking the 30-year mortgage rate from 6.11% in mid-February down to the 5.5%-6.0% range.

However, geopolitical events starting February 28 introduced new uncertainty. The 30-year mortgage rate rose by 31 basis points in March to about 6.42%, even though it remains below the level of the same period last year.

Despite the ongoing volatility, a FACTSET consensus survey of 26 economists still expects another 50 basis point rate cut before year-end, with only a 10% likelihood of a rate hike at the April 29, 2026 meeting.

Benchmark Equity Research noted that pent-up demand is still waiting in the wings, and rising inventory could push sale prices lower, which may offset the impact of a modest increase in interest rates.

Here are the company’s top picks in the sector:

Compass

The industry’s largest residential brokerage, with about 340,000 affiliated agents. Compass stands out with its distinctive private-label marketing approach. Benchmark initiated coverage, assigning a Buy rating and a $14 price target.

eXp World Holdings

EXP Realty defines itself as a company built for agents by agents, offering high compensation and a white-label virtual platform. The company initiated coverage, assigning a Buy rating and an $8.00 price target.

Real Brokerage

A small company growing quickly using a virtual model, high compensation, and unique agent incentive programs, which could help improve retention rates. Benchmark initiated coverage, assigning a Buy rating and a $5.50 price target.

AppFolio

A software company serving the construction management segment. The company initiated coverage, assigning a Buy rating and a $222 price target.

Frontdoor

Home warranty products offered to consumers through a wide range of channels, with high renewal rates. Benchmark initiated coverage, assigning a Buy rating and an $80 price target.

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