Holy low rates Batman! 📉

Happy new year, I hope you had a fantastic holiday season and Santa brought you everything on your list!

If sub-6% interest rates were on your list, you may not have gotten them from Santa, but you can get them for yourself today!!!

News on Thursday of a government plan to buy $200 billion in mortgage bonds has sent rates down below 6%. If you’re thinking of buying a home in 2026…keep reading.

In this newsletter:

Thanks for being here, have a great weekend!

Great news for buyers today, mortgage rates just delivered a real win. The average 30-year conventional loan dipped below 6%, a level we haven’t seen in quite some time. Even better, today’s rates are now more than 1% lower than this time last year, which can translate into hundreds of dollars a month in savings and a noticeable boost in buying power. It’s the kind of shift that gets buyers off the sidelines and brings fresh energy back into the housing market.

Rates dropped sharply today on news from President Trump on plans for Fannie Mae & Freddie Mac to purchase $200 billion in mortgage bonds, in an attempt to reduce rates & address housing affordability. The announcement seems to have worked so far, but no details were given on the plan to purchase bonds. The question will be, is this a temporary reaction & drop in rates, or will they remain below 6%. (link)

Curious what your rate would be in today’s market? Reach out to my lending partner, Aaron Alvarez with West American Mortgage, at (602) 705-9835.

How’s the market? The holidays are a notoriously slow time in real estate, so a snap shot of the month of December isn’t an ideal way to gauge what is happening in the market.

I have put together a more broad set of data comparing the past three years, and also comparing Q4.

Let’s have a look at the data

What does it mean?

The greater Phoenix market continues to move along, not really doing too much. The number of sales has gone up, which can likely be attributed to more buyers entering the market due to lower interest rates. That said, the 4th Quarter of 2025 did show signs of weakening prices, it will be interesting to see if this trend continues into 2026.

As we move begin 2026, a lot of headlines are still built around fear. Crash talk, bubble comparisons, and dramatic predictions continue to circulate. But when you strip away the noise and look at what’s actually happening on the ground, the housing market is settling into something far more familiar and far more manageable.

Here’s what buyers, sellers, and homeowners should realistically expect this year.

The idea of a major home price collapse makes for attention-grabbing headlines, but it doesn’t line up with today’s fundamentals. Inventory remains well below historic norms, lending standards are still tight, and most homeowners are sitting on fixed-rate mortgages they have no interest in giving up.

That said, prices are no longer racing upward the way they did during the pandemic boom. Instead, we’re seeing modest softening in many markets. Sellers are adjusting expectations, price reductions are more common, and buyers have regained some negotiating power. This is less about a crash and more about a market returning to balance.

One of the most overlooked challenges in 2026 isn’t interest rates, it’s insurance. Homeowners insurance premiums have climbed sharply over the last few years, driven by higher construction costs, climate-related claims, and tighter underwriting standards.

For buyers, this can be a surprise. A home that looks affordable on paper can quickly become expensive once insurance is factored into the monthly payment. In some cases, higher deductibles or limited coverage options are forcing buyers to rethink otherwise solid purchases.

Smart buyers today are getting insurance quotes early in the process, not after they’re under contract.

We are beginning to see more short sales return to the market, particularly from homeowners who bought near peak prices during the COVID-era frenzy and now need to sell due to job changes, life events, or financial strain.

That said, this is not a repeat of 2008. Most homeowners still have equity, and lending practices over the past decade have been far more conservative. Distressed sales will increase modestly, but they’re likely to remain a small slice of the overall market rather than a flood.

One truth hasn’t changed: quality always rises to the top. Well-located homes that are priced correctly, updated, and show well continue to sell even in a softening market. Truly exceptional homes often attract strong interest, multiple showings, and quick offers.

On the flip side, homes that need work, are overpriced, or feel dated are sitting longer and facing price reductions. The gap between “average” and “excellent” listings is wider than it’s been in years.

2026 is shaping up to be a year of normalization. Not a boom. Not a bust. Buyers have more breathing room, sellers need to be realistic, and the market rewards preparation and good decision-making.

Whether you’re buying, selling, or just watching from the sidelines, understanding these trends, especially the hidden costs like insurance, can make all the difference in navigating today’s housing market with confidence.

It is no secret, some of the best deals on homes right now, are from the new home builders. In an effort to not drop their prices, the builders are willing to offer some large incentives which a buyer can use to pay for their closing costs and also ‘buy down their interest rate’ that will lead to a lower monthly payment.

I’m also hearing of builders being open to offers and negotiating on certain homes they are wanting to sell.

The downside can be, a limited selection, but you’re still getting a brand new home.

This Fulton Home in Surprise is just $398k.

Beautiful two-story home featuring 3 bedrooms and 2.5 baths. Enjoy an invPrasadapen design with a spacious great room and a stunning 16' atrium door that opens to a private paver courtyard, creating seamless indoor-outdoor living. The kitchen offers abundant cabinetry, a large island, and quartz countertops—perfect for entertaining. Upstairs, the primary suite includes a generous walk-in closet and is split from the secondary bedrooms for privacy. Fully landscaped front and back with a 2-car garage and extra storage. Exceptional Prasada location near shopping, dining, and easy 303 access!

See all the details here.

Listing provided by Steven A Good II with Fulton Home Sales Corporation

Referrals are the backbone of any realtors business, and mine is no different. Many of you have sent your friends & family my way over the years, and it is always fun to get that call ‘they said you’re the best, so I’m calling to get your help!’

If you know anyone thinking of buying or selling in 2026, I’d love the opportunity to connect with them and see how I can help.

I saw this house in an Instagram post and I had to pull up the MLS listing to see more about it. What’s not to love about an estate on 57 acres in Sedona with Oak Creek frontage, that has its own winery setup & a really cool house??

Vivi la vita al megliore! Live your life to the fullest! Imagine if Old World Tuscan charm met the magical energy of Sedona, Arizona—welcome to Eagle Mountain Ranch, your private sanctuary within a gated haven where you can rejuvenate, celebrate, and embrace La Vita Bella. Spanning ten contiguous parcels across 57+ pristine acres, this extraordinary estate offers 1,700 feet of Oak Creek frontage, a producing vineyard yielding hundreds of gallons of red Zinfandel grapes each year, plus a peach grove and apple orchard—all nurtured by a fully automated irrigation system. Some acreage carries agricultural zoning, equating to substantial property tax savings, while an owned 23KW solar power system brings modern efficiency to this timeless estate.

Lounge on the sandy beach by day, gather around the firepit under starry skies by night, or wander into acres of lush meadow backed by National Forest, where the only audience for your song is nature itself.

Outdoor living is elevated with enchanting water features, glowing braziers, a pond, two fireplaces, a 700+ gallon in-ground jacuzzi tub, and even a cigar room, all set against Sedona's iconic red rock backdrop.

The majestic main residence, one of only five Tuscan-inspired masterpieces, was reimagined with over a million dollars in renovations (2016). Driving through the gates, you enter another world....the circular entry greets you with Venetian plaster finishes and transports you straight to the Italian Riviera. At its heart, the great room features a fireplace and expansive pocket sliding doors remote-controlled to seamlessly blend indoor and outdoor living. The chef's kitchen dazzles with Subzero, Wolfe, and Viking appliances, dual dishwashers, warming drawer, convection ovens, prep sink, and a nearby butler's pantry. A full bar, complete with double kegerator, and Scotsman ice maker, is perfect for toasting milestones or enjoying an intimate nightcap.

Entertain grandly in the formal dining room with its dramatic arched stone entry, illuminated art niches, and dual wine cabinets storing up to 500 bottles.

Retreat to the primary suite, where a cozy fireplace, sweeping views, and a bathroom draped in Arabescato marble create an atmosphere of pure indulgence. A chandelier glows over the soaking tub, while double doors open to the outdoor hot tub and views beyond. The pièce de résistance: an expansive closet fit for the most devoted shoe collector. A private office with built-in bookshelves hides a secret room, and two additional en-suite bedrooms ensure guest comfort and privacy. Throughout the home, a Crestron sound and light system sets the perfect ambiance.

Beyond the residence, an enormous climate-controlled four-car garage provides ample room for your tools and toys. Two charming guest homes, a rustic barn, and two historic red rock storage buildings expand the estate's versatility.

330 Eagle Mountain Ranch Road is more than a property it's an experience. Awe-inspiring to see, indescribable to feel, and waiting for the next chapter of its remarkable story.

Check out all the details here.

Property listed by Nisreen Hawley with Berkshire Hathaway HomeServices Arizona Properties

Last week’s trivia question was ‘What is the name of the highest mountain peak that towers above the White Mountains, at an elevation of 11,409?’

The correct answer was: Mount Baldy

Mount Baldy, located in Arizona’s White Mountains, is the highest peak in the state, rising to about 11,400 feet. Known to the White Mountain Apache Tribe as Dził Nchaa Siʼan, the mountain sits within the Fort Apache Indian Reservation and is considered sacred. With alpine meadows, dense spruce-fir forests, and summer temperatures far cooler than the desert below, Mount Baldy offers a rare high-elevation landscape in Arizona, though access is regulated and permits are required.

My cousin has lived in Knoxville, Tennessee since attending the University of Tenneessee in the 1990s. I have not been to visit recently, but he makes it sound like it is a great place to live, and it is also a very trendy place to relocate to the past couple years.

I started nosing around on Realtor.com and came across this interesting house.

It is just a 2 bedroom home with only 1,280 square feet, but I find it intriguing because it is so different from what I am used to here in the Phoenix area. It appears to be well located and not that far from town. 🧐

See all the details here.

The Arrowhead Hiking Club was created for people in the Northwest Valley who enjoy getting outside and exploring our local trails. For 2026, we are launching the Summit Challenge, a simple, fun goal built around hiking some of the best mountains close to home, which can be completed throughout the year.

The challenge includes eight different hikes to eight local summits, all in and around Glendale and the surrounding area. Each hike offers its own views, terrain, and sense of accomplishment, giving members a reason to stay active and discover some new trails you may not have experienced yet.

The 2026 Summit Challenge is about enjoying the desert, setting personal goals, and hiking alongside others who love the outdoors, one summit at a time.

Learn more about the challenge & upcoming hikes at our website.

This club is meant for everyone, from seasoned hikers, to out of breath beginners like me. So if you want to hit the trail and enjoy the outdoors, check out our website at ArrowheadHikingClub.com or find us on Facebook.