There is something quite strange going on in our industry right now. Properties that you would think of as normal homes in normal neighborhoods, comprising maybe 85%+ of the core metro, are difficult to sell right now. We are seeing an all-time high (at least within the last 10 years or so) of buyers getting cold feet and bailing out of deals. Buyers are cancelling more now than any time we or our colleagues can remember.
So what’s happening?
There seems to be no collective consensus about this. It’s not rates, because going back 30 years, home affordability is only slightly above the norm in terms of average income to average monthly mortgage payment. The Iran war is affecting gas prices, sure, but overall it’s not catastrophic. Last winter’s ICE occupation is collectively fading out of our memory. Everyone is talking about it in our industry–it’s like there’s something in the air, but it’s a bit of a mystery. Chalk it up to folks being freaked out about job security and the incredibly high cost of goods right now?
What does this mean for you?
If you or anyone you know is thinking of selling soon, we need to discuss new strategies. The post-ICE surge saw a period where outcomes were excellent for sellers, but as we move into fall and winter market this year, the rules are changing. Prep needs to be dialed before you hit the market, and ancillary marketing channels need to be considered. Who you hire as your realtor in the second half of 2026 is going to be more important than probably at any time in the last 10+ years.
Not to sound alarmist, but this topic is coming up every single week at our Tuesday brokerage meetings, and all of us are wondering when the headlines will switch to signals of it being a buyer’s market.
As you may or may not know, my wife Kelly (and The Intuitive Group’s executive assistant) is currently in grad school at St. Mary’s getting a master’s in counseling psychology. I asked for her opinion, and she noted the collective anxiety that gen z and millennials are feeling right now due to economic and political uncertainty. In her opinion, the AI of it all has created an environment where people between the ages of roughly 25-45 especially are freaked out about the future of employment. Career changes, layoffs, Claude/AI infiltrating teams, and even the “threat” of maybe losing (or just hating!) your job may all be in play here. Buying a house is something people want to do when they feel financially stable. If you’re worried about layoffs or you’re tempted to quit your job in a blaze of glory, you may have buyer’s remorse after signing a purchase agreement.
Grace notes that buyers are continuting to still watch their search and the market even after they’ve put an offer in. So, if they’re thinking suddenly that they’re not getting a good deal, maybe they write an offer on Friday and on Saturday they see a new property hit the market that is comparable but maybe $20K cheaper, they’re going to be scared. They’re still shopping even when they’re under contract.
Grace and I agree that EVERY LITTLE THING on inspection is becoming a big concern. For buyers, we’re getting bigger concessions on inspection than I think I’ve ever seen.
As a seller, we advise to mentally prepare to receive inspection asks. Buyers are getting worried about “fine-tuning” of the home because it’s such a such a big purchase, financially and mentally, that every ungrounded outlet matters.
So, if you’re thinking about buying, now is the time to jump on it. If you’re a move-up buyer looking for your dream house, let’s do it!
