Latest / The Jon Sanchez Show / Is 2026 Becoming a Buyer’s Market?
Transcript
- Jon G. Sanchez, CEO: Good Thursday afternoon to you. Welcome to the Jon Sanchez Show on Newstalk which pleasure to be with you. Pleasure to be with one of our two hosts. Mr. Mallard has the afternoon off. That leaves Mr. How are you, my friend? Good, good. Yeah, no kidding. You to stay even warmer with snow on way. ⁓ Aaron Clark, Edge Realty: I'm doing good. Trying to stay warm. It's freezing out there. It's like the weather in Reno is acting like the markets, right? Every day it's just schizophrenic and bouncing back and forth. Jon G. Sanchez, CEO: Good, good analogy. Every day something different. There you go. There you go. Yep. still do you remember as a kid growing up, I still remember. I don't remember what grade I was in, but I was at the Reno Air races and on fourth it was over 4th of July weekend and it snowed and that that was I was like, I don't know, first or second grade, something like that. And it's like ever since then. Yeah, you just never know what our weather is going to do. That's for sure. Yeah, very similar on the on the stock market side. My friend, that's that's a great analogy. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: All right, well, we will tell you, of course, what happened in the stock market today. But first, let me tell you what our real estate topic is going to be with Aaron. You know, I asked Aaron to kind of give us, you know, he's in the trenches each and every day and to really give us a pulse of what he is seeing going on. And our theme today is the following. Is 2026 becoming the year of the buyer? Is that the buyer's market? Right, Aaron has alluded to over these last few weeks, months, whatever the case has been. Things are shifting a little bit, speaking of weather changing and housing market changing, stock market changing, everything changes all the time. And so I wanted him to kind of go into some details, really answer the critical question, is 2026 really becoming a buyer's market? I mean, we've heard about inventories rising, homes sitting a little bit longer, price cuts showing up. you know, so many different things that are now shifting over to more of the buyer side. At least that's what some of the data is showing us, but nothing will compare to Mr. Clark's knowledge because he is in the trenches each and every day. Aaron, give us a little tease before get into the stock market side of things. How close am on this topic? Are we seeing a seismic shift, a small shift, a large shift or no shift at all? Aaron Clark, Edge Realty: We are seeing ⁓ shift in particular of the market. You want to elaborate? ⁓ So, ⁓ right, You said a tease. I was just going to leave it right there. ⁓ All right. in markets it's to get in or you have special opportunities, you're still seeing a seller's So, Jon G. Sanchez, CEO: Selective. Elaborate. You piqued my interest. Yeah, I know, I know, I know. Aaron Clark, Edge Realty: For example, a neighborhood that is popular, small, few properties hit the market when they finally do, wants to jump on them. Properties that have a specific price point something comes in with a good deal, quote unquote, right? ⁓ Then it sit, it moves along well. The feels like it's a seller's market. Now, in a market you ⁓ several of similar properties, ⁓ Jon G. Sanchez, CEO: Mm-hmm. Aaron Clark, Edge Realty: you're not competitively priced, you're just trying to like match the competition, if you will, ⁓ yeah, you're gonna sit out there for a while because you to have something that draws everyone to you over the competition. ⁓ And inventory increases, ⁓ where might've been one of five or one of four or one of three, ⁓ now might be one of 20, one of 30 or ⁓ whatever is. And especially in large markets like ⁓ the Reno area, you've got a lot of opportunities and options out there. Jon G. Sanchez, CEO: Mm-hmm. Okay. Right. Right. Okay, okay. I mean, those are ⁓ common traits in any real estate market. High interest rate, low interest rate, strong, weak demand, whatever the case is. But now, of course, like you said, unless it's a very specific, type of property, it is really now shifting over to the market side of things versus where it was the seller's not too long ago. This real quickly, curious, when did you start that shift in that, you know, Aaron Clark, Edge Realty: It is. Jon G. Sanchez, CEO: larger market where, know, if we had a pendulum sitting in front of us here and when did it move from the seller's market to the buyer's market? Was there a certain month or months that did it or market event that did it? Was it the rise of interest rates? I mean, Aaron Clark, Edge Realty: Yeah, I mean, I would say... when we've kind of plateaued with our rise of interest rates and we were stuck there for a little while, you saw inventory increasing a little bit. you kind of saw phase one. And I think you saw phase two when rates to creep down a little bit, but buyers were kind of holding their breath saying, well, I think going to go even more. So I'm not going to do anything yet. And then now we're in season, the season of the seller, when people are getting properties ready and getting them ready to be listed. ⁓ And now you're increasing inventory a lot in this market. And so now you're kind of seeing phase three. So where buyers had to come in and kind of take it in the teeth on repairs and concessions or something like that, they've got options and they have a little bit of power to say, no, I want this fixed or I'm not going to buy your property and sellers need to fix it. Jon G. Sanchez, CEO: Mm-hmm. So I guess I can assume that it still sticks out in my mind. I Cory, I don't think you were on the show at that point, but I think Cory was one that said it where, and this was what, a year, maybe two years ago, he was saying that buyers would literally come to the table, negotiating table, with a letter to the seller indicating why they should be the buyer of the property. I assume those days are gone. Aaron Clark, Edge Realty: Oh yeah, yeah, we, call it, we used to call those love letters. Yeah. So yeah. And they made some rule changes where you can't do it because it's considered unfair advantage or whatever. But yeah, those days are definitely gone right now. It's, it's a buyer has a lot of good opportunity out there. Unless they're looking for something that's very special and rarely comes up, then they're going to get a lot of competition on it. Jon G. Sanchez, CEO: Love letters. There you go. I like that. I like that. Yeah. Gosh. Okay, okay. right, very good. Well, we got a lot of things to talk about with Aaron Clark. We definitely do that. Let's get down to what happened in the stock market today. So want to take you back to this. Actually, I'm to take you back to last night. I said the show yesterday, 1300 plus point gain on the Dow Jones Industrial Average yesterday. Everybody was high five in. We got a 45 day and I was kind of the wet blanket on the party yesterday. And I said, be very careful. I don't think it's sustainable. There's too many. ⁓ Too many moving parts and I won't go through everything that I said. Please pick up the podcast or the YouTube and you can air everything that I've mentioned. Lo and behold, futures started slipping a little bit during the show. They really slipped overnight. Oil prices started to pick up pretty dramatically and we carried that overnight. So it looked like today was gonna be more of the same. Looked like I'm thinking to myself, oh boy, here we go. We're gonna get back a lot of these gains that we so thoroughly enjoyed yesterday. So. You know, in a worse level today, we're down a couple hundred points on the Dow, but what was really concerning is where oil was. I mean, when I did my first update this morning, Aaron, oil was at $4.46 a barrel at 98.87. At our highest level, at least when I was watching closely during my updates this morning, we're up about, I think it was 100, 102. So that equates to, you know, over actually about a $6 per barrel gain. Very substantial. And we had some time periods where It looked like it was a stock. It was moving so fast. It just over and over again on the upside. Like, okay, here we go. So it looked like it was gonna be a down day. We were down in the markets. We were up in oil prices, et cetera. Then of course, here we are, as I said yesterday, we are 100 % a headline-driven market right now. No one takes the time to evaluate and really put any common sense into it. But the headline came out today that Israeli Prime Minister Benjamin Netanyahu directed his aides to open direct negotiations with Lebanon. Now those talks are set to begin next week. But get this, Aaron, Israel said, okay, yeah, that's great, we're gonna have talks with Lebanon. However, we're gonna continue to launch strikes against Hezbollah in the interim, which could of course lead to further volatility. That headline moved the stock market up, brought oil prices down, we finished up $3.49 a barrel. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: just off of that headline. And again, you look at it go, okay, so I'm going to sit down with a negotiating table with you and Neo next week. But in the meantime, I'm going to blow you to smithereens. And if there's anything left of you or any people left of you, know, we'll do with that side. Almost when saw that headline, Aaron, it almost felt like a page out of Trump's right? Out of his negotiation book, which is, ⁓ you scare the hell out of them and ⁓ them and do But ⁓ by the way, you know, I still love you, brother, type of thing. You put your arm around them. And so once again, I sat there and I shook my head thinking, OK, headline first is good until I saw the second part of the headline, which is they're going to continue bombing them until these negotiations sit down. I don't know. Go figure. You just sit here and you scratch your head, as I say just about every day on this show. So that was the headline. We actually finished in an OK fashion. 276 point gain on the Dow, 0.58%. The closing level is 48,185. NASDAQ rose 187.83 % and the S &P up 42 points or 0.62%. So you look at it, at least on the Dow side of things, last two days, we're up basically north of 1,500 points. Not too shabby, not too shabby. So I think, as I said on the show yesterday, I think the most important thing about today was we didn't severely go in reverse and start wiping away those gains of yesterday. I don't care what index you look at or stock, et cetera. That was the real positive of the day. think the other positive today was even though oil was up, obviously nothing substantial compared to what we've seen, wasn't enough to again, use the excuse, all right, oil's up a couple bucks a barrel, let's reverse it on the market, let's start taking some profits. So I think today was a real positive day overall, considering headline I just shared with you and of course, not giving gains back yesterday. All right, we had very busy day on the economic calendar. I wanna come back and hit that, we'll hit oil, gold. treasuries, et cetera. And we'll even talk about the 30-year mortgage in the absence of Mr. Millard. of which, let's go ahead and turn it over to Kristin Snow. She's in the Right Now traffic center. She's not absent today. How are you, my dear? Welcome back to the Jon Sanchez Show on Newstalk 780K, which with Aaron Clark, Dwight has the afternoon off. All right, once again, we finished with a gain of $2.76 on the Dow, a 0.58 % rise. NASDAQ up 187.83 % and the S &P gained 42 points, 0.62%. On the oil front, as I mentioned, a $3.49 increase, $97.89 a barrel. Gold rose $40.40, closing at $4,817.10 an ounce. Big goose egg. This ought to make you happy, Mr. Clark. Big goose egg on the 10-year Treasury. yield The 30-year mortgage, according to Mortgage News Daily, slipped two basis points to a rate now of 6.38%. So it's come nicely. I don't know, these last couple of days, I remember, what was it, Tuesday? think we were at 6.44. Yeah, very worried, right? Exactly. So starting move a little bit in the direction that want, of course. Now, very quickly, before we to our topic today, which is, is 2026 becoming a real estate buyer's market? ⁓ Aaron Clark, Edge Realty: Yeah, we were very worried. Yeah. Jon G. Sanchez, CEO: Let me run through the economic reports of the day. It was a busy one. We had personal income come in. This is February's data. Down 1 10th of a percent on personal income. Personal spending, kind of the sister report, up a half a percent. on surface, you may go, ⁓ that's not good, right? Personal spending, exceeding personal income. ⁓ That's combination Wall Street wants. They don't want personal income rising ⁓ because creates wage inflation. ⁓ They to see the personal spending trump personal income. ⁓ because that means you and I as consumers are out there spending, which will equate to higher corporate earnings. So that's the logic there. we received the Fed's favorite measure of inflation, the PCE month over up 4 tenths of a percent. That was in line with Wall Street's Year over year up 2.8%. So remember the key on this one, this is again, as I said, the Fed's favorite measure of inflation. ⁓ This is the they want to get down to that 2 % mark, right? So. We're just not budgeting, know, 2.8 got a long ways to go. On the labor front, got a little uptick in initial claims. The first time filing for state unemployment benefits up 16,000 for the week, but still a very historically low number of 219,000. The continuing claims down 38,000 to 1,794,000. And then the final report of the day was the, well actually, sorry, was the second final one. We got the final estimate, what we call the third estimate of GDP for the fourth quarter of last year. And that number went from 0.7 % increase down to 0.5%. So again, the economy wasn't quite as strong in the fourth quarter as they initially told us that it was. But again, Balcer didn't care too much about that one. They just brushed it aside. And then finally, the one that was the final one, 7 o'clock wholesale inventory is up 0.8%. They were looking for a decline of 0.2%. So not a good sign that you're seeing wholesale inventories building up. That means course, businesses are not selling what they have sitting in the warehouse in a real simplistic format there. Aaron, we a lot of good time now. So I'm glad we're down through So let's start moving into our topic. So are we looking at 2026 now becoming the year of the buyer? So we find ourselves a interesting situation. We know, of course, that the consumers, as you and Dwight have alluded to many times over the last few months, a little bit on the skittish side right now. For whatever reason it may be, AI, again, I don't want to bring that up, and that's always looming. Am going to lose my job to AI? And again, of course, all the volatility in the stock market. We all know that people feel wealthy if their 401k is doing well. They feel poor if it's not doing well. Overall, I think 401ks are hanging in there very well. But let's... Talk about, what you're seeing right now. Let's start with the inventory side of things. Aaron Clark, Edge Realty: Yeah, so I mean, are seeing inventory moving up both and locally. I think of it's cyclical in the sense that we're entering the spring market when inventory naturally does. I usually right that February, March time period is the phone starts ringing. Hey, I want to sell my home. When should we get it on the market? And then you're spending, you know, 30 days getting them ready, prepped, and then listed. So there's definitely like the natural cycle of things. top of it, definitely think that, you talked about this before ⁓ when had this market where been relatively unchanged for the last few years, you have a pent up market of ⁓ people that want sell that might be ⁓ starting to feel okay, now is the time I can get out there and I can do this. And it's increasing that both naturally, but also because I think are tired of sitting still, you know, they're ready to move and rock and roll. ⁓ Jon G. Sanchez, CEO: Mm-hmm. Yeah. Yeah. Yeah. Yeah. Aaron Clark, Edge Realty: So but then you have all this geopolitical thing that's happening So we have this great outlook before the whole Iran thing of when Dwight was talking about what was it four and a half weeks ago We were at five point nine percent on the 30 year and so it was like yes We're we are going we're like a train going downhill right now and then all this stuff happens so we're kind of like Jon G. Sanchez, CEO: Yes, we did. Yeah. But, Yep, yep. We're there, there, yep. Exactly. Aaron Clark, Edge Realty: I've been, when I talk to my clients, I've been kind of presenting it as we're kind of in a squishy market right now. people are back and they're just kind of like, I'm going to see it kind of day by day, feel it out. Yesterday was a day that made people kind of go, okay, maybe it's not, you know, don't need to sit back so much. I'm ready to jump in. ⁓ But then like who knows what is going to happen, you know? So we're in squishy, squishy time period. Jon G. Sanchez, CEO: Right. Yep. Yep. That's my point. What's the, keep bringing this up around the inventory subject, that we're not seeing a lot of movement as far as sells buys unless it's necessary. Like you've said, a divorce, a death, something along those lines. So let's rule those out of the equation. For the person that does not have an urgent situation. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: What's their reason right now? What would you say is the number one reason they're looking to sell? Because it's not, they most likely are gonna go from a lower mortgage rate to a higher mortgage rate. Is it, I'm outgrowing my, I've outgrown my home? would you say at the top of your list is the number one reason that you're seeing people selling? Aaron Clark, Edge Realty: I'm seeing a lot of downsizing right now. So I'm seeing ⁓ entering that kind of time period. Yeah, and they're kind of like, well, I keep what I have, but with the volatility, I'd kind of like to cash out and be a little more safe and comfortable and ⁓ put that in market with you, you know, and doing stuff like that and buying something a little bit cheaper. And now they're paying cash. So even though they have a super high interest rate or whatever, or high loan, they're now sitting in a where Jon G. Sanchez, CEO: ⁓ interesting. Empty nest phase, yep, yep. Have some liquidity. Aaron Clark, Edge Realty: have a paid off house and no loan. I'm seeing a lot of that. I'm seeing a lot of families that, you they bought what they could afford at the time period. Rates were really high. They expected be there for a short time and ⁓ now they've of like crossed that borderline how long they wanted to be there. ⁓ And now they're simply outgrowing it and the numbers aren't so if you will, to sell. They've got enough equity built They've got enough time and upgrade. So ⁓ most Jon G. Sanchez, CEO: Mm-hmm. Aaron Clark, Edge Realty: Mostly it's the upgrading and then it's the relocation. It's the people coming from out of state, net positive population growth in Nevada, and bettering their situation from that perspective, which is a buy-up because they're going from whatever they had that was selling for way too much to here and getting a great deal. ⁓ Jon G. Sanchez, CEO: Right. Right. Mm-hmm. Mm-hmm. Okay. All right. Very good. then before we go to break, let's talk about price reductions. What are we seeing right now on the price reduction side? Aaron Clark, Edge Realty: Yeah, so price reductions are hitting, on those properties that I think were kind of hitting the market when were at that 5.9. and the market was starting to look real good and things changed and then it kind of stalled out a little bit, stalemated. So those properties I think are kind of going, okay, I need to do something to move this train a little bit faster. And then we're seeing a lot of price reduction in homes that are formatted like everything around them. So they're all the cookie cutter. I hate to use that word because it's annoying to me, but they are, they're the cookie cutter. Like there's 50 options of that. Jon G. Sanchez, CEO: cookie cutter. Yeah, I know. Yeah. Aaron Clark, Edge Realty: of home ⁓ with different paint and ⁓ know whatever slightly different sizes those ones we're seeing the price cuts a lot special stuff not so much it's stuff's moving Jon G. Sanchez, CEO: Mm-hmm. Okay. Okay. ⁓ What's the real reason for that? So that tells me that tells me that there is liquidity out there that people are willing to pay for the right property. It's not like they're going, no, I've got money, I'm not. Things are overvalued, inflated, et cetera. They're just waiting for the property that they want. So if you have a unique property, probably no problem selling is what I think is what you're saying. Aaron Clark, Edge Realty: the real reason for it. Yes. Jon G. Sanchez, CEO: If you have, like I said, I know you don't like the term, but I'll use it, cookie cutter. So you got a track house, nothing really unique about it compared to many other homes in your neighborhood. are gonna be the ones where you gotta be a bit more aggressive that we'll talk about on the selling some and so on so forth, right? Is that the point? Okay. All right, perfect. All right, Aaron of Edgy Lady, of course, joining us. Let's move it on over to Jack Saban. He's got news, traffic, and weather, and we'll continue our discussion. Hey, Jack. Aaron Clark, Edge Realty: Mm-hmm, yep, absolutely, yep. Jon G. Sanchez, CEO: Welcome back to the Jon Sanchez Show on New Stock 780K OH joined by Aaron Clark of Edurillity. Dwight again has the afternoon off. Well, once again, it was a decent day today in the market. Again, we did not want to see a reversal of the big gains of yesterday and we didn't get it today. We finished up 276 on the Dow 0.58%, Nasdaq rose 187.83 % and the S &P up 42 or 0.62%. All right, I've asked Aaron to bring us up to date on what he has seen as a realtor in this marketplace because again, We're hearing that this may turn out to be, meaning 2026, the year of the buyer and not the year of the sellers it has been for so many years. So we've just got started on the topic. Again, we asked Aaron, what are we seeing right now? Inventories are creeping up a little bit, home sitting a little bit longer. No longer the bidding wars, no longer the love letters like we saw before. Aaron, let's move to our second point. The power of the seller right now is starting to fade. let's talk about. naming the price, naming the terms, basically being in control of the whole negotiation, sounds like they're losing that power that they had. Aaron Clark, Edge Realty: Yeah, I mean, we had a position in the past where had a seller that could basically dictate how were going to proceed when it came to inspection issues and things like that, or any sort of discrepancies or anything that a buyer in a, what we'd a balanced or normal market would request to be taken care of. So, I mean, I'd have homes where needed a new roof, for example, and the seller say, instead of giving you the $20,000 you need to the roof or paying to get it done themselves, ⁓ They'd give you a thousand bucks and it was like well if you want the house I mean it's up to you take it or leave it like that's where they're at you know And they kind of had that power to be able to say it and if the buyer didn't want to do it Then ⁓ was somebody else waiting in line. ⁓ those are definitely not happening anymore I mean again, we're talking about this very special properties where everybody wants it because those are still having Multiple offers on but your average market condition home. No this seller Jon G. Sanchez, CEO: Take it leave it. Yeah. Aaron Clark, Edge Realty: Sellers are having to do a lot more when I'm working with sellers and do a walk through to determine the condition of the property and repairs and things like that we need to get done. A more of the conversation is, ⁓ hey, my list of people that I have that can do all the work for you. ⁓ We to get this, this, this, this, and this fixed and done ⁓ because buyer is coming ⁓ pretty cash They want a good deal, but more than anything, they don't want project and their value or buyers now. So you asked earlier before we went to break, what is the real factor that's pushing people? And what the real factor is it's pushing people to make that jump even though it's a little more expensive, it's a little more this, it's a little more that. Is there value there? The current situation that I'm in, is it gonna cost some money to get it where it needs to be? Yeah, maybe it is. But I could buy this over here, I might be paying a little bit more, but it puts me you know 80 % more Jon G. Sanchez, CEO: There you go. Okay. Mm-hmm. Aaron Clark, Edge Realty: in better position in my life for a couple hundred dollars or even a thousand dollars more a month. So it's the value. So for sellers, they have to sell more on value by saying, look at my beautiful home. All those windows that are old, they need to be replaced. I replaced them. The roof, fixed. This, done. Landscaping, done. The house is in excellent condition. Now a buyer can just come in and live and enjoy it. Jon G. Sanchez, CEO: Right, right, right, right. Where did this turn, when you're talking about, I'll use the term, turnkey properties, right? I noticed you and ⁓ have bringing this up recently, even to the point where ⁓ a lot people are selling their homes furnished, right? The buyers just wanna walk in, turn the key, it's like, okay, now I can get my life going again. I haven't been to that out. Explain. Aaron Clark, Edge Realty: Yeah. Yeah. Jon G. Sanchez, CEO: How did we shift to that? Because it used to be the opposite, right? That was the joy of buying a home. It's like, ⁓ I want to put up my own curtains. I want to make it mine. I want to put my touch on it. It doesn't seem to be that way anymore. Why? Aaron Clark, Edge Realty: Yeah, again, people coming in spending ⁓ all money ⁓ on into the house. ⁓ So, know, we've talked about this a lot of those concessions that people were getting. ⁓ They getting concessions for repairs ⁓ necessarily. were like, ⁓ yeah, the roof needs to be replaced. Jon G. Sanchez, CEO: Okay. ⁓ okay. Okay. Got it. Yes. Great. Great by downs. Aaron Clark, Edge Realty: Yeah, well, it's not leaking now, so I'd rather use the 20K to get my rate bought down a half a percentage and save me $200 a month. people coming in super cash poor and in that regard, ⁓ they have the luxury of necessarily moving in, having a great payment that they're comfortable with and then paying somebody come in and gut the bathroom and replace this and replace that. Plus, ⁓ you I talking to Corey the other day, when you came into house and someone's and you told somebody, hey, we should replace the Jon G. Sanchez, CEO: Sure, sure. Okay, that's the reason. Aaron Clark, Edge Realty: carpet, they'd be like, well how much does that cost? the number is drastically different now, ⁓ than double ⁓ it cost even five years ago. So cost to do anything is so expensive you've got to take a loan out just to get your carpet replaced, you know? ⁓ So the other part of it. It's better for a seller to just get it done. Jon G. Sanchez, CEO: Yes. Yes. Right, right, right. Okay. Gotcha. Are we seeing new home builders to this also where they're making, I the new that I have bought over my life, that was one of the great things about it is you could come in and say, okay, ⁓ you know, gonna finance the granite countertops in the kitchen. I'm gonna finance a lot of my upgrades so I wasn't coming out of pocket. Where is that with these home builders? Aaron Clark, Edge Realty: I mean, they're still doing that stuff. They're doing more value upgrades that will help them get the home sold because when they say, hey, oh, you want a fireplace? Well, that's $30,000. That's not their cost. So they have some room in there to say, it was 30, but now it's 15. Jon G. Sanchez, CEO: Right? Right now. Aaron Clark, Edge Realty: because we're gonna split the cost with you or whatever, to get you to go, well, that's all I wanted was a fireplace. That's enough value for me to buy this house. So they have some ability and they are doing that on a lot of incentives type stuff or % off on all upgrades or ⁓ like that. So we're seeing that. ⁓ Jon G. Sanchez, CEO: Mm-hmm. Okay. Yes, right, right. Yeah, yeah. Okay. All right. Our third point is 2026 becoming a buyer's market. Of course, you have to talk about interest rates. That's where everything starts. And obviously, wish Dwight was here to go through this, but we'll handle it. We're going to make it real brief here. So as we said, 30-year mortgage today, according to Mortgage News Daily, down two basis points, 6.38%. So we've been having around this 6.4, 6.45 right around that area for last few weeks. Best level, as Aaron alluded to, 5.99 right before the war started. Broke that 6%, Mark. I remember joking with Dwight how happy he must have been that day when that finally happened. But once again, the best advice, as you've heard us say a million times, is you date the rate and you marry the property. So if all the other conditions are being met, as Aaron has alluded to, don't let a 6.4%, 6.4%, 5 % mortgage stop you. It doesn't make that big of a difference. Again, you can always, always refinance down the road. ⁓ you're sitting on the sidelines, simply because of that, back what we were saying earlier, there's too much volatility, right? The bond market, the stock market, et cetera, trading on headlines. As I on the show yesterday too, remember folks, the bond market controls the mortgage market, right? It's not, ⁓ talk about 10-year and all that stuff, which is a bond, of course, ⁓ but in theory, the Jenny Mays, the Fannie Mays, those types of bonds, again, that really determine what the mortgage rates are gonna be. bond traders are not as optimistic as the stock market investor is in regards to this whole conflict being resolved soon, cetera. So ⁓ they're no hurry right now. They're in no hurry, that's why I'm saying this. The bond traders are in no hurry to plow into bond market, which drives the rates lower, or vice versa. They're just kinda sitting on their hands at this point until they see one direction or other where things are gonna go. Aaron, as of yesterday, if you can believe this, there is only a 35 % probability that we're going to get a quarter percent cut out of the Fed this year. That's it. 35 % probability, and only one the end of the year. So the traders are going, OK, we know that inflation is still being sticky. Again, we got those PCE prices this morning. So the traders are not going to be your friend. If you think the bond traders are going to be your friend and ⁓ start piling bonds, which drives those rates down, it ain't going to happen, as the saying goes. They're worried about too many different things. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: and they move a lot slower than what the stock market does, which is, again, more headline driven. So I think the bottom line is, if 2026 is your year to make a move, don't sit there and try to time the mortgage rates. Just get it. Get the best you can. to your mortgage professional, hopefully Dwight. ⁓ about it, maybe a buy down or something. ⁓ don't let that dissuade you of moving into that home. If you find the right deal, whether it's a new home or an existing home, ⁓ get in there. The rates will always work themselves out down the road. As long as you can afford it and so on and so forth. know, for me not being a real estate professional, these guys are, you agree with that advice, Aaron? I mean, it's. Aaron Clark, Edge Realty: ⁓ yeah, absolutely. mean, if you can get in, this is how you get deals. If the rates were to drop, not that they would, but if the rates drop to 3 % tomorrow, single property on the market is going to go up in price by $200,000. ⁓ Jon G. Sanchez, CEO: Yeah, yeah. Right. You bet. Yep. Absolutely. Absolutely. right. When we come back, we're going to wrap up with ⁓ buyers. What are their strategies right now? The ones that are sophisticated. They're not really They're looking at it more as the numbers. What's that smart money, as we like to call it? What are they doing? ⁓ And we'll wrap things up with Aaron. Speaking of it up, let's do it with Kristen Snow. She's in the Right Now Traffic Center. Hello, Kristen. Welcome back to the Jon Sanchez Show on Newstalk which of Aaron Clark eventually that phone number, sir. Aaron Clark, Edge Realty: 673 6700 Jon G. Sanchez, CEO: Beautiful. All right, Aaron. So let's wrap up our topic. Is 2026 becoming a buyer's market with what I like to call the smart money, the sophisticated money, the ones that are making real estate investment decisions based on data, based upon facts, not what their heart is telling them. What are they doing right now? What are they seeing in this market? Aaron Clark, Edge Realty: Well, right now it's important as a strategy to negotiate everything. So you want to make sure that, know, if there's something you don't like about the property, throw your, throw ⁓ offer on it on. a document and throw it in and see what happens and see what kind of response there is. Because what you might be thinking is something that's going to destroy the opportunity, something that to a seller, ⁓ don't care about and they're willing to work with you or whatever else. ⁓ can't tell you how many times I have a listing where takes their buyer goes and looks at it. I call them for feedback or whatever and Corey has the same thing happen. And they have some idea in mind that the seller wouldn't be interested in doing it. And you got to drill them to find out what it is. Jon G. Sanchez, CEO: Good point. Aaron Clark, Edge Realty: and then they finally say it and you're like, they'd be totally open to that, write it up. Yeah, and then they just get cold feet and then they don't. your hat in the ring, put an offer in. What's worst thing that can happen? There's no obligation. The seller says no, or they you and then you have a better idea. Jon G. Sanchez, CEO: Yeah, okay, cool. Yeah, yeah, that's a great point. Right? Right. Could it be that they're still of the mindset? I mean, I remember you sitting behind this microphone for years people are just discouraged, right? They keep putting offers in. They're not accepted. ⁓ that's where they got conditioned to write, as you said, the love letters and ⁓ they got to come in at full offer or more. And again, now things have changed a bit. So do you think just the brain is conditioned to say, I don't want to disrupt this because I don't want to take a chance of losing the deal if I ask for this, this, and this? Aaron Clark, Edge Realty: There is. Yeah, or you get three offers on a property and you're like, hey, we got two or three offers, we're requesting a highest and best. ⁓ they don't realize all of them are below asking and all of them have concessions. So they automatically go, ⁓ I must be the worst buyer in the situation, so I'm not gonna keep going. When in fact, they were the best. They have to up anything, but we still have to represent our clients that are selling their property ⁓ to them in the best position for that So always try. Jon G. Sanchez, CEO: Got it. Wow. Aaron Clark, Edge Realty: You never know. There's no reason not to. ⁓ ⁓ Jon G. Sanchez, CEO: great point. Let's talk real quickly about inspections. We know this is one thing in a hot, you know, seller's market. A lot of people were foregoing, which is absolutely against your advice. ⁓ What about that now? What's going on there? Aaron Clark, Edge Realty: Yes. Yes, get your inspections, don't skip them. Make sure that you're getting the house checked in every reasonable aspect because those things translate to future issues down the road. And like we said, you can always refi. Well, you don't want to refi a house that you got to drop 50 grand into and pull cash out of it. That's not going to help you at all. So make sure you're getting your inspections and you're negotiating with the seller over issues. And if they're not going to negotiate, they're going to give you $500 for a new roof. Go find another house. Jon G. Sanchez, CEO: Yeah, okay, okay, all right. Okay, wrap us up. Give us, I don't know, couple points that that person out there right now saying, yep, this is the year I'm gonna be a buyer. I'm gonna move up, whatever the case is. What are the couple things they need to think about right now? Aaron Clark, Edge Realty: Yeah, if I'm a buyer right now to position myself strategically to get the best deal possible, going to tell my realtor to give me every listing that's been on the market for 30, 40, 60 plus days in the area that I want. ⁓ And I'm going to find, there's going to be things I don't like about them. That's why they're sitting there. ⁓ I'm going to negotiate the heck out of them. And that's how you're going to get the best deal. You're going to get concessions, you're going to get kickbacks, you're going to get repairs, you're to get everything ⁓ so you can get the best deal in the house. Those be the ⁓ on ⁓ Jon G. Sanchez, CEO: Mmm the stale listings Where's that stale point right now? Because I know that's kind of a moving target. it a house that's been sitting for, as you said, 30 days, 45? Is it the 60? the pain threshold where people are like, OK, we've got to get this thing moving. I to move, and I've had it on the market for 50 days, 60 days. Where's that right now? Aaron Clark, Edge Realty: I mean right now like sitting around two and a half months I think is the time on market inventory but really it depends the area. So an area, properties aren't moving crazy as let's say a popular area. So ⁓ that's where ⁓ need to down with somebody that's got your back and they're going to the data for you on your behalf. They will tell you, these the ones. ⁓ These the ones that are good deal. ⁓ Jon G. Sanchez, CEO: Right. Yep. Great point. Okay. Love it. And what's that phone number one more time? Aaron Clark, Edge Realty: 673 6700. Jon G. Sanchez, CEO: That is the man you need to call. He will analyze. He will come back. He will tell you what needs to be done to get the best deal for you. Great job, buddy. I enjoyed working with you one on one today. That was a lot of fun. right, brother, have a great weekend, and I'll be back with you tomorrow on the Jon Sanchez Show. God bless. Have a great afternoon. Aaron Clark, Edge Realty: Absolutely.