If you’ve ever worked in the real estate industry over multiple market cycles, you know that markets are never static. Circumstances change, consumer sentiment waxes and wanes, and timing is critical. What is different at this moment is not just what is happening in the market, but how people feel about it.
This is one of those moments. And that represents a real opportunity.
The past few years following the post-pandemic boom have tested even the most experienced professionals. Historically low sales, limited inventory, record-high prices, and affordability challenges due to rising mortgage rates created hesitation on both sides of the deal. Many consumers simply pressed pause.
Today, that pause is starting to lift.
As I always say in my agent coaching sessions, preparation is critical. Gain a leadership position by understanding domestic market drivers, such as mortgage rates, and the regional nuances that define every part of the market. Not because everything suddenly became “easy”, but because clarity returned.
The Great Market Reset and What It Will Unleash
When I first joined ERA in 2023, agents were navigating surprisingly similar situations no matter where they traveled to visit affiliates. Inventory was tight, prices were soaring, homes were flying away from sellers, and sellers had the upper hand. Buyers, on the other hand, were often disappointed before they even started.
Currently, prices are stable, rising slightly in some markets and falling slightly in others. Combined with rising inventory levels, this signals a move towards a more balanced market, although inventory and pricing remain highly localized.
That balance is important. It creates space for conversation, choices, and more thoughtful decision-making.
Agents with local acumen are uniquely positioned to offer advice to buyers and sellers who may still be reacting to national news headlines or ignoring them entirely. This is where our values shine. As the market resets, we have an opportunity to explain what’s going on, what it really means, and how our clients can move forward with intention.
The best agents I’ve known have always been more teachers and counselors than salespeople. While many consumers are still uncertain about today’s market, the opportunity is clear. Lead as a trusted advisor who brings perspective and calm.
Turning point in mortgage interest rates
The main driver of this new momentum is mortgage rates and the sentiment surrounding them.
In July 2025, NAR reported that an additional 5.5 million households would be able to afford a median-priced home if mortgage rates reached 6%. NAR also predicted that 550,000 renters would buy a home over the next 12 to 18 months if interest rates reach that threshold.
I’m there now.
On February 25th, interest rates fell to 5.99%. For homeowners who secured interest rates in the 3% to 4% range during the coronavirus pandemic, this could potentially ease the long-standing “lock-in effect.” We started 2026 with more homeowners with mortgage rates above 6% than those with mortgage rates below 3%, and that number is likely to grow even further in the coming months.
This is not an automatic surge. But it’s a signal.
For many consumers, the 6% tax rate is more than just a financial calculation. Represents permission. Permission to re-engage, consider options, and believe that action is possible again.
The arrival of the spring shopping season
Spring is traditionally a time of high activity in the real estate industry. That seasonality has all but disappeared during COVID-19, when intense competition and limited inventory flattened the typical spring surge. For the past three years, spring activity has been well below historical norms. In fact, last spring’s home sales were the lowest in 13 years.
As we move towards a more balanced market with mortgage rates around 6%, buyers and sellers may re-enter the market this spring, motivated by the possibility of settling into their next home by late summer or early fall.
Consumers tend to focus on three key factors when deciding whether it’s the “right time” to move: price, condition, and rate.
price
Home prices have remained largely stable, with modest increases in most markets. That stability benefits buyers by relieving the pressure caused by inflated demand. Buyers have more negotiating power, including the price, credit at closing, and mortgage rate buyout.
Sellers, on the other hand, still benefit from rising prices and can often use the equity they gain toward their next down payment.
situation
Ready-to-move homes continue to attract high interest and sell quickly. Homes that need updates can stay on the market longer and sell for less than list price. Some buyers are open to projects, but sellers should expect to negotiate on price and concessions.
Agents play a critical role in helping clients match their expectations with urgency, whether that means waiting for the perfect turnkey home or prioritizing their most important needs during a life-long move.
Fee
A 5.99% mortgage rate has as much a psychological impact as a financial one. Beyond affordability, a sense of financial security is reinforced and often motivates action.
Reframe conversations with sellers
For many sellers, it has been years since their last transaction. Their expectations are shaped by past experience and what homes in their neighborhood sold for last year. At such moments, sellers do not resist. It’s simply working with old reference points.
This is where agents have an opportunity to take control.
Proper pricing remains important. Overpricing can lead to longer days on market and more price reductions that could have been avoided. A market-savvy agent who can clearly explain today’s situation and have thoughtful, transparent conversations can help sellers optimize their results.
It’s also important to understand the seller’s mindset. Pricing for speed and pricing for maximum revenue are different strategies, and neither is wrong. Shifting the conversation from list price to equity can have a powerful effect. Many sellers who have owned a home for several years, even in a more balanced market, have built up enough equity and are in a good position to make their next move.
Some things don’t change
Yes, we are in the midst of a market reset. Our approach evolves. Our conversation deepens. Our question becomes even more nuanced.
What hasn’t changed is our commitment to being the smartest agents on the block, the experts with the clearest insight and the most powerful advice. Agents who consistently achieve their goals don’t wait for perfect conditions. They perceive these moments as they are. It’s not a guarantee, it’s an opportunity.
And there is a way to change everything if you take the opportunity with preparation and confidence.
Alex Vidal is the president of ERA Real Estate.
