Is AI the New “Well-Meaning Dad” for Real Estate Buyers and Sellers?
The Inner Circle • March 31, 2026
People are turning to AI for just about anything you can think of:
- Trying to figure out if a strange symptom is worth a doctor’s visit
- Drafting a text they’ve been overthinking for three days
- Deciding whether that noise coming from their car is “normal” or “you should probably pull over immediately”
- Even asking how to handle awkward conversations, negotiate a salary, or plan out major life decisions
So of course, it makes sense that people buying or selling a home would turn to AI at different stages of the process.
And to be fair, it can be incredibly useful.
It can give you a general sense of how the process works, help you understand terminology, and prepare you to ask better questions.
Ideally, it helps make things smoother. More efficient. More informed.
But that really hinges on whether it’s actually giving you accurate information, and whether that information is being interpreted correctly.
That’s not to say that AI always gives wrong or even bad advice. But one thing it always gives is…confident advice. And sometimes, that confidence can be misplaced.
When Everyone’s AI Answer Is “Right”… Things Can Go Wrong
A recent story making the rounds is a perfect example of how this can play out in real life.
According to NewsNation, well-known celebrity agent Ryan Serhant shared how a major deal nearly fell apart because both sides were turning to AI for guidance during negotiations.
Basically, the seller asked if they were accepting too low of an offer, and AI confidently said yes. On the other hand, the buyer asked if they were paying too much. And, wouldn’t you know it, they were confidently told that they were in fact overpaying.
That led to both sides wanting to cancel the contract.
The agents involved were able to step in, help their respective clients understand the market data, and ultimately bring the parties back together to salvage the deal.
And that’s becoming a more common role in today’s market. Agents are having to help people navigate situations where the challenge isn’t a lack of information… but rather being too certain about the information they are receiving.
Very Few People Actually Trust AI, Yet Many Still Follow Its Advice
A recent survey found that while only 16% of people say they trust AI “a great deal,” yet many still rely on its answers when making decisions.
Even more interesting:
- 58% of people admit AI has influenced their opinions
- 32% don’t fully understand how it generates answers
- And despite all of these things, many people still rely on the confident-sounding answer from AI over a trusted, verified source
That’s a tricky combination.
Because if you don’t fully understand how something works, it becomes very hard to recognize when it might be wrong.
And when the answer is delivered in a way that sounds authoritative, it’s easy to accept it at face value.
AI Is the New Dad in the Room
In a way, none of this is entirely new.
Real estate agents have been navigating this dynamic for years, it just typically comes from different sources. For instance:
- The well-meaning buyer’s dad at the home inspection.
- A relative who “sold a lot of houses” in their life. (It was two. And they were in the 80s and 90s.)
- Their hair stylist who knows every house on the market in town.
That’s just to name a few examples. There are plenty of other people with thoughts and opinions they want to share with someone who is in the middle of buying or selling a home. And, while they come in all shapes and sizes, the one thing they all have in common is that they are absolutely, 100% confident in the advice they give.
Unfortunately, their perspective and advice is often wrong or outdated, which puts the agent in a tough spot because they have to gently untangle advice that sounds logical, but isn’t actually good advice.
People are often speculating how many jobs AI will replace in the near future. Will it replace the well-meaning friend or family member soliciting advice to home buyers and sellers? Probably not. Most likely AI will just be added to the list of outside advice agents have to help their clients assess and decide whether it’s accurate or not.
And that’s really what this all comes down to.
By all means, use AI. Ask it questions. Get a feel for things. Explore different angles.
And while you’re at it, hear out the thoughts and advice of friends, family, and even that random person who sounds incredibly confident in what they’re saying.
There’s nothing wrong with gathering input.
But at the end of the day, just make sure you have an agent you trust helping you weigh the confident-sounding advice… so you can make a confident decision of your own.
The Takeaway:
More and more people are turning to AI for advice, and when it comes to buying or selling a home, that’s no exception. It can be a helpful starting point, giving you a general understanding of the process and helping you feel more prepared.
The challenge is that AI often delivers confident answers that can sound right… even when they don’t fully apply.
That’s why having a trusted agent matters. Not just to provide information, but to help you interpret what you’re hearing from AI (or even a well-meaning friend or relative), filter out what doesn’t apply, and guide you toward decisions that actually work in your specific situation.
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What Rising Inflation Means for Your Move Data shows inflation is moving in the wrong direction. But before the headlines send anyone into a panic, here's what's actually going on, why it matters for the housing market, and what it means if you're thinking about buying or selling. Inflation Went Up – Here’s What That Actually Means The government tracks inflation in a variety of ways. One is something called PCE – the Personal Consumption Expenditures Price Index. It measures how much more (or less) people are paying for goods and services compared to a year ago. And just based on your own expenses, you can probably guess which way that’s trending. That’s the one everyone is talking about right now. Check out the yellow line to see how that’s spiked since February (see graph below). A big driver of this jump is the ongoing conflict in the Middle East, which has pushed gas and energy prices significantly higher. Now, you may have noticed there’s a second line. The blue line shows core PCE. That’s the same measure, but with gas and energy prices stripped out. The Federal Reserve (the Fed) actually watches this number most closely because energy prices swing around a lot and can be misleading. And here’s the somewhat encouraging part. Core PCE is rising, but not nearly as fast as the overall number. That suggests a good chunk of the inflation spike we’re seeing right now is tied directly to what’s happening overseas. So, when that situation settles down, inflation may settle a bit, too. Why This Matters for Mortgage Rates Here's the housing connection. When inflation is high, the Fed tends to keep the Federal Funds Rate elevated or even raise it to try to taper spending and cool inflation back down. And while it's not a one-for-one relationship, that Federal Funds Rate can have an impact on your mortgage rate when you buy. Right now, based on the information we have, there's roughly a 50/50 chance the Fed actually raises the Federal Funds Rate before the end of 2026, according to CME FedWatch (see graph below): While it’s too soon to say where this goes for certain and if we’re headed for a rate hike, it does mean mortgage rates are probably not coming down as soon as most people were hoping. If you've been waiting for rates to drop significantly before making a move, this report is a reminder that "higher for longer" is still very much on the table. It really all depends on where the economy goes from here. According to Bankrate: “Oil prices and bond yields have dropped a bit . . . but they're still way up compared to the start of spring. Until there’s a resolution to the war, look for both inflation and mortgage rates to stay high. ” But This Is Not 2008 – Not Even Close Just remember, a tough economy does not equal a housing crash. The conditions today are very different from what led to the 2008 collapse. Here's why: Inventory is still relatively low. There's no flood of homes hitting the market. Most homeowners today have strong equity in their homes. Lending standards are far stricter than they were before 2008. Today's challenge is affordability, not a wave of distressed underwater sellers. Uncomfortable and unhealthy are not the same thing. The market feels hard right now, but "hard" and "crashing" are very different. You Still Have Options. Here’s What To Do. High rates don't mean homeownership is out of reach. It just means the path looks a little different. There are real strategies that can help, depending on your situation: Ask your lender about different loan options. Adjustable-rate mortgages (ARMs) or rate buydowns may help lower your monthly payment in the short term. Explore first-time buyer programs, down payment assistance, or seller concessions that could help offset costs. Stay in close touch with a trusted agent and lender. When rates shift, and they will, you’ll want to be ready to move fast. The right strategy, tailored to your goals, matters a lot more than waiting for the perfect moment that may never come. Bottom Line Inflation is still above where the Fed wants it, and that means mortgage rates are likely to stay elevated for a while. But for people who need to move, strategy matters far more than trying to perfectly time the market. Wondering what this means for your specific situation? Reach out today. Let's cut through the noise together and make a plan that actually works for you.
The Mid-Year Housing Market Update: Why Forecasts Changed in 2026 If the housing market feels confusing right now, you’re not alone. Mortgage rates have risen. Home sales haven't picked up like expected. And many buyers and sellers are wondering when things are going to feel easier or be more affordable . The truth is: a lot changed over the first half of this year. Back at the end of 2025, economists were forecasting a much stronger housing market for 2026. They expected mortgage rates to come down, affordability to improve more dramatically, and home sales to rebound. But lingering inflation, economic uncertainty, and growing geopolitical tensions overseas pushed mortgage rates higher than expected. And because rates stayed elevated for longer, many buyers continued to hold off. That’s why experts recently revised their housing forecasts for the rest of the year (see graph below): So, what does this actually mean for you? Let’s break it down. Mortgage Rates May Remain Elevated While just about everyone wants mortgage rates to go back to the uppers 5s or low 6s we saw at the start of the year, as of right now, the experts don’t think that’s likely to happen this year. Instead, forecasts have been updated from the low 6s they originally projected. Many industry organizations are saying rates will stay in roughly the mid 6s this year. The good news is, that’s still lower than rates were a year ago . Of course, this is based on what we know today. If the conflict overseas comes to an end or inflation drops, this could change. But if you’re waiting for lower rates, it may not pay off in the way you expect. Existing Home Sales Revised Lower Back in late 2025, experts expected we’d sell an average of 4.5 million homes this year. Now? That’s dropped down a bit to 4.2 million. That tells us something important: buyers are still hesitant because affordability remains challenging. Higher mortgage rates have made monthly payments harder to manage, especially for first-time buyers. And that’s slowed the pace of the market compared to what was originally expected. But even though the forecast was revised down, we’re still expected to sell more homes than last year. Once geopolitical tensions resolve and rates begin to settle down, many experts believe that group of buyers will be ready to jump back in. As Lawrence Yun, Chief Economist at NAR, explains: “There is sizable pent-up demand that could be released into the market.” There has already been a few glimmers of renewed hope lately. In recent months, pending homes sale have been improving month-over-month despite higher rates. So, if you’re able to afford a home at today’s rates, it could still make sense to buy now. Because otherwise, if you wait, you’ll have more competition (and potentially fewer homes to choose from) when those others buyers jump back in. New Home Sales Also Slowed Builders also expected to have a stronger year. Earlier forecasts projected new home sales would top 700k in 2026. Now, economists expect we'll be just shy of that number . Again, mortgage rates are a major reason why. But the upside for buyers is that builders may be even more motivated to sell. That means builder incentives , negotiation opportunities, and pricing flexibility may continue in many markets. So, if you live somewhere where there’s more new construction, this may actually be a bright spot for you. Builders could be more ready to negotiate, and that gives you more leverage to get a better deal. Home Prices Are Still Expected To Rise This is one of the most important takeaways from the entire forecast. Even though sales activity is slower, on average, experts did not revise their home price forecast downward. They still expect prices to rise nationally this year. Why? Because while buyer demand has softened, the number of homes for sale is still relatively limited overall. That imbalance is helping support prices, even in a slower market. Of course, conditions vary depending on where you live. Some markets are cooling more than others. But nationally, experts are still projecting steady price growth — not a major decline. And that should be a comfort whether you’re buying or selling. Because sellers don’t want a major drop in prices. And while buyers may think they do, generally you feel better about a big purchase when it doesn’t depreciate right away. Bottom Line The housing market hasn’t rebounded as quickly as experts originally hoped. But that doesn’t mean it’s stalled. Higher inflation and lingering economic uncertainty caused economists to revise their forecasts for this year. But importantly, when those two things settle down, many experts believe the market will regain its momentum. So don’t see this revision in forecasts as a sign of trouble. See it as a temporary reaction to overall conditions and uncertainty. If you want to know what’s happening in our local market, and what it could mean for your plans for the rest of this year, let’s connect.
Less House, More Home: Why Smaller Homes Are Paying Off for Today’s Buyers You started shopping with a specific mental image of your future home in your mind. Then the houses in your budget came in smaller than you pictured. That’s the reality for a lot of buyers right now. Affordability is tight. But don’t let that discourage you. Going smaller might actually be a smart play in today’s market – and the upside can be bigger than you'd think. Let’s break down two places to look where smaller won’t necessarily feel like a compromise. Homebuilders Are Focused on Smaller Options Lately For starters, smaller is kind of on trend right now. Newly built homes have been shrinking for years. According to the latest data from the Census, the median square footage of new single-family homes has been falling overall since 2014 (see graph below): Why? Builders focus on the types of homes consumers want the most. After all, they want to build what will actually sell. And for the past decade, buyers seem to agree less is more. Especially right now, when affordability is a key concern, they’re building homes with smaller square footage than a decade ago. And that’s good because that may be more within budget for many buyers. It’s part of why new home prices recently hit a 5-year low . So, if you’re not getting excited about any of the existing options at your price point, it may be time to check out what builders are doing in your area. You may find brand-new options you really love with all the latest and greatest features. And if you’ve got modern appliances and design, maybe slightly less square footage doesn’t feel like that much of a compromise anymore, especially if the house is move-in ready. Condos Are Opening Up Another Path Just in case you don’t have a ton of new builds in your area, another avenue worth exploring is condominiums or condos. For buyers crunching numbers to make the math work, condos can take real pressure off the budget. According to the National Association of Realtors (NAR), the median price for condos is less than the median for single-family homes in every region (see graph below): Part of that is because condos are typically smaller. And smaller square footage can come with a smaller price tag too. That's a selling point to affordability-strapped buyers right now – and it’s one of the reasons we’re seeing a bump in condo sales. The number of condos sold rose 2.7% from just a month ago. It’s also up year over year, according to NAR . Ali Wolf, Chief Economist for New Home Source, explains why more buyers are going this route: “In addition to favoring smaller floor plans, more consumers are showing a willingness to live in an attached home. This shift is not driven by a preference for shared walls, but by a pursuit of value.” The Community Does Some of the Heavy Lifting Here’s why smaller may still work for you. Whether it’s a condo complex or a neighborhood of detached single-family homes, the right community can give you back in amenities what you trade in square footage. Many developments are designed so the home is just one piece of where you actually spend your time. Master-planned communities often include walking trails, pools, fitness centers, co-working spaces, and outdoor gathering areas – the kind of features that pick up where your floor plan leaves off. No room for a dedicated office? The co-working space might be just a five-minute walk away. Want a place to work out? It's already built in with the shared gym. And features like that can make opting for a smaller footprint feel less like a compromise – and more like a big lifestyle upgrade. Bottom Line Today’s smaller single-family homes and condos have more going for them than the square footage suggests. They can give your budget some breathing room and put you in a community designed with lifestyle in mind. Curious about the options in our area? Let's connect.
