- Buyers and refinancing homeowners are seeing mid 5% rates for those willing to lock for 5 or 7 years.
- List price is more important than ever. Over-priced homes eventually sell for less.
- Landlords: you have to supply a fridge now!
As 2026 gets off to a crazy start on the national and international level, our little Real Estate microcosm continues to chug along with no wild swings. Buyers and those homeowners who wish to refinance are seeing rates in the mid 5% range under certain circumstances - most importantly a willingness to lock for 5 or 7 years with an ARM. Conventional wisdom suggests rates will slowly creep down allowing both groups a later opportunity to lock in a 30 year rate, if desired.
Homeowners who plan to sell in 2026 should heed the advice of their professionals, now more than ever. Over-pricing and "testing the market" usually leads to more days on the market and ultimately a lower price. When I'm valuing a new listing, I do a deep dive into the comparable sales, micro-market conditions, and consider any unique challenges my listing will have. Providing a fair market value range to my clients, I will usually suggest listing near the lower end of that range. As we've seen for over 5 years now, it's almost impossible to under-price a home. Buyers and their agents will see value and bid over list price, and these overbids can still eclipse $100,000 on a correctly-price home in the $1M - 2M range. Conversely, listing a even just a little over the most recent comparable sale can lead to fewer showings and likely no offers during the home's prime first 2 weeks of listing. Reducing the price shows buyers a sense of desperation, and now we're chasing one buyer and have lost most of our negotiating leverage. I regularly see homes sell for 10% off list price when that first price is unrealistic. I'll be happy to share real life case studies when we sit down and talk about your home and my suggested list price.
Finally, switching to new laws in California, for any home leased after Jan. 1, 2026 (or when an extension or modification is made to a lease), the landlord is now required to provide a refrigerator. If you're a landlord, and your tenants brought their own fridge, they are now entitled to one provided by you next time you extend or make any changes to the lease. Call me with any questions related to this or other lease-related questions. My team also handles property management if you're looking to hand over or change your rental property management.
I look forward to speaking with you soon about your Real Estate wishes, goals, and plans.
- Matthew
Posted by Matthew Fletcher on
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