What No One Is Telling You About the 2026 Housing Market

The Truth About Real Estate, Interest Rates, and Why Expertise Matters More Than Ever

If you’ve been paying attention to real estate headlines lately, you’ve probably noticed one thing: it’s loud.

From bold claims about AI replacing agents to discount brokerages promising to save you money, to conflicting news about whether it’s a buyer’s or seller’s market—it’s no wonder consumers feel overwhelmed.

But here’s the truth: most of what you’re hearing isn’t giving you the full picture.

In this week’s Fly the Coop podcast, the Cari Ann Carter Group sits down with Sharry Schmid, President & CEO of Edina Realty Home Services, to break down what’s actually happening in today’s market—and what it means for you as a buyer or seller.

The 2026 Housing Market: Why It Feels So Confusing

Right now, the real estate market is being shaped by three major conversations:

• Interest rates
• Housing inventory
• Technology and AI disruption

The problem? The information out there is inconsistent—and often misleading.

One article says inventory is high. Another says it’s low. Some claim it’s a buyer’s market, while others insist sellers still have the advantage.

So what’s the reality?

👉 Real estate is hyper-local.

In the Twin Cities, for example, inventory remains under three months—firmly keeping us in a seller’s market. That means well-positioned homes are still moving, and strategic sellers are still winning.

Are Interest Rates Really That Bad?

One of the biggest misconceptions right now revolves around interest rates.

While rates are higher than the historic lows we saw in recent years, they are still within historically strong levels when you zoom out.

The issue isn’t just the rate—it’s how people perceive the rate based on recent memory.

👉 The takeaway: Waiting for “perfect” rates could mean missing real opportunities in today’s market.

The Truth About AI and Real Estate

There’s no question that AI is changing industries—but when it comes to real estate, there’s a major misconception:

Technology cannot replace local expertise.

Buying or selling a home isn’t just data-driven—it’s:

• Emotional
• Strategic
• Relationship-based
• Constantly changing

AI can provide information, but it cannot replicate intuition, negotiation, or on-the-ground market knowledge.

As discussed in the podcast, even leaders in AI acknowledge that roles requiring human relationships and complex decision-making—like real estate—are far from being replaced.

Why “Discount” Real Estate Can Cost You More

One of the most talked-about trends right now is the rise of discount brokerages claiming you don’t need full-service representation.

But here’s what often gets left out:

👉 Real estate is not a simple transaction.

Behind every sale is a complex process that includes:

• Strategic pricing and positioning
• High-level marketing execution
• Negotiation expertise
• Inspection navigation
• Legal and regulatory compliance

When done right, this process can mean the difference of tens to hundreds of thousands of dollars in your final outcome.

👉 The reality: Saving on fees upfront can cost significantly more in the long run.

The Power of Local + National Reach

One of the biggest advantages discussed in this conversation is the combination of local expertise backed by national power.

With Edina Realty’s deep Twin Cities presence and its connection to a nationwide network through HomeServices of America (a Berkshire Hathaway affiliate), sellers benefit from:

• Immediate exposure to local buyers
• National and global reach
• A powerful network of agents and relocation channels

In today’s market, that kind of connectivity can make a major difference—especially as more buyers are relocating from out of state.

In fact, a significant portion of current open house traffic is coming from outside the local market, highlighting just how important broad exposure has become.

Experience Matters More Than Ever

Here’s something most people don’t realize:

A large percentage of agents in the market today are relatively new, having entered during the COVID-era boom.

In contrast, experienced agents have:

• Navigated multiple market cycles
• Adapted to changing conditions
• Built strong networks and relationships

At Edina Realty, over 40% of agents have more than 10 years of experience—a critical advantage when navigating today’s evolving market.

👉 Because buying or selling a home isn’t just financial—it’s emotional and psychological.
And that requires experience, not just information.

Spring Market 2026: What You Need to Know

As we move into the spring market, here’s the bottom line:

• Inventory is improving—but still competitive
• Opportunities exist for both buyers and sellers
• The market is more balanced than the frenzy of past years
• Strategy and guidance matter more than ever

👉 This is not a market to navigate alone.

Final Thoughts: Cut Through the Noise

If there’s one key takeaway from this conversation, it’s this:

Not all real estate advice is created equal.

In a world filled with headlines, opinions, and quick solutions, the real advantage comes from:

• Asking the right questions
• Working with experienced professionals
• Understanding your local market

Because at the end of the day, real estate isn’t just about buying or selling a home—

👉 It’s about making one of the most important financial decisions of your life—and getting it right.

Thinking About Buying or Selling?

Connect with the Cari Ann Carter Group for expert guidance tailored to your goals and your market.