First, let us address the question I am asked most often: interest rates.

Yes, there may be modest rate cuts in 2026. However, many of the reductions people are hoping for have already been priced in by lenders. Banks have adjusted in anticipation of rate changes, which means we would need additional or unexpected economic action to see meaningful drops. Buyers should not sit on the sidelines waiting for a dramatic shift, because that shift may never come.

Beyond rates, the broader economic picture matters just as much. Job security remains a concern across many industries, especially in the Bay Area. Consumer confidence is still relatively low, and that uncertainty influences how people approach major financial decisions like buying or selling a home.

What does this mean for real estate? It means a steady market with selective activity. Well-qualified buyers will move forward when the numbers make sense. Sellers who price and prepare correctly will succeed. Everyone else may wait.



Why Goal-Setting Matters More Than Timing

In a stable market, success comes from alignment, not urgency. Before making any move in 2026, you should be asking yourself a few foundational questions:

• How does this decision support my long-term financial goals?
• What does stability look like for my household over the next three to five years?
• Am I making this move because it makes sense, or because I feel pressure to act?

Some of the most impactful guidance I provide does not result in a transaction right away. In many cases, I advise clients to stay put, build equity, improve their financial position, or simply wait for a better window. Real estate should support your life, not complicate it.

When Buying or Selling May Not Be the Right Move

There are very real situations where buying or selling in 2026 may not be the best decision.

For buyers, this could mean finances that are not yet where they need to be, income that feels uncertain, or goals that would be better served by waiting another year. Buying a home is not just about qualifying for a loan, it is about feeling secure in your ability to sustain the investment.

For sellers, timing matters just as much. If you have not owned your home long enough to build sufficient equity, or if your specific property type is facing softer demand, selling now may not maximize your return. Sometimes the smartest move is preparation, not action.

A Recent Seller Conversation That Ended With “Not Yet”

A couple who purchased their home just two years ago recently contacted me about selling. This surprised me, as I often advise clients to plan on staying in their homes for five to seven years, and in some cases even longer. They told me they wanted to move to a more affluent neighborhood.

The husband believed their current home was now worth two million dollars based on online valuation tools. They expected to find a three-bedroom, two-bathroom home in their target neighborhoods for around two and a half million dollars. As I always do, I took their goals seriously and ran the numbers.

Using local comparable sales, I showed them that their home was more realistically valued around one point eight million dollars. We then looked at inventory in the neighborhoods they were targeting and quickly saw that homes meeting their criteria were priced beyond their reach, especially since they needed the proceeds from their sale to fund a down payment.

When I asked why they felt such urgency to move, the husband admitted that many of his colleagues lived in those neighborhoods and he wanted to be there as well. After reviewing the financial reality, I told them honestly that I did not believe selling right now was a good idea. They agreed, and ultimately decided to stay in their current home for at least a few more years.

They appreciated the candor. I am not here to sell or buy your house; I am here to be your resource in strategic planning. Sometimes no deal is the best deal, at least for now.

A Buyer Decision That Protected Long-Term Financial Health

In another recent case, I had buyers who fell in love with a property and were eager to move forward. Once we reviewed the disclosures, however, we discovered that the home required approximately seventy-five thousand dollars in foundation repairs.

My clients suggested requesting a price reduction in that amount. I then asked a critical question: did they have the seventy-five thousand dollars available to complete the repairs? They admitted they did not. I explained that banks do not loan forward on known repair issues like this, and in many cases will not even approve a mortgage if they are aware of significant structural problems.

I also shared that ignoring foundation issues can lead to much more costly damage within a short period of time. Purchasing a home with substantial structural concerns, without the assets to address them immediately, can quickly become a financial burden.

I advised them to be patient. They decided to wait for a property in better condition and, in the meantime, focus on strengthening their reserves so they can act confidently when the right opportunity comes along.