For years, I’ve said Zillow can’t detect if 20 cats live in a house. Now, as many consumers use AI to assess property values, I need to update that: AI also can’t smell if cats live there. We’re at an interesting juncture where AI influences consumer understanding, especially regarding home values and market trends, so I want to share some thoughts—particularly about the growing segment of lower-priced homes. **Upcoming Speaking Engagements:** - 4/22/26 EDCAR - 4/28/26 PCAR Rocklin - 5/7/26 Empire State of Mind - 5/13/26 Investor Webinar (TBA) - 5/14/26 Event (TBA) - 5/15/26 Nevada County (TBA) - 5/21/26 Event (TBA) - 5/27/26 Solano County (TBA) - 6/3/26 Wisdom Wednesday, Elk Grove - 8/6/26 PCAR Auburn - 10/2/26 PCAR Rocklin - 10/21/26 Coldwell Banker Sierra Oaks / EDH (I used AI to create today’s image with Grok, fitting given the topic. ) --- ### AI and Home Values: “But AI Says…” Increasingly, I hear clients referencing AI’s appraisal of home values, turning “But Zillow says…” into “But AI says…” Unlike traditional platforms, AI often prompts deeper conversations—not just about overall value but about how specific items impact worth or ROI on improvements. For example, a client used ChatGPT to estimate an ADU’s value; another presented an itemized list of improvements with AI’s estimated contribution to value. **Sample AI queries I tried:** - Grok’s take on HVAC systems - ChatGPT’s view on ADU value *(Note: These examples aren’t guaranteed accurate—always fact-check AI outputs. Consumers are engaging with AI, so real estate professionals must be ready to discuss and clarify. )* --- ### Reflections on AI in Real Estate - Expect more detailed real estate discussions sparked by AI. - Always verify AI data by examining sources; relying just on summaries is risky. - AI is a powerful tool for valuing properties and enhancing business efficiency, and I’m impressed with my colleagues’ innovations. - Despite AI’s benefits, it can’t replace human relationships, which remain essential as technology—ironically—may contribute to societal loneliness. On a side note, people have used AI with my image for event flyers, sometimes altering my appearance or stripping credit from my charts—sometimes AI even muddles data presentation. My AI versions look “hotter, ” though my family finds them odd since they know me best! --- ### Market Insights: Strength Growing at Lower Price Points in 2026 So far this year, the biggest growth in closed sales volume is in the $400, 000–$500, 000 range.

This trend is regional and appears in many counties, likely driven by modest price dips making these lower price points more viable. --- ### Are First-Time Buyers Increasing? It could be, but MLS data doesn’t clearly reveal first-time buyer numbers. Growth in lower-priced sales is positive, as this range typically attracts such buyers. (Note: FHA financing alone isn’t a reliable indicator for first-time buyers. ) --- ### Viral Narrative on First-Time Buyers: A Cautious Outlook The National Association of Realtors recently published stats showing first-time buyers at record lows, but the study has limitations. Based on a 6, 103-respondent national survey—the same one that claimed first-time buyers are now 40 years old, a contested figure—I’m skeptical and prefer not to amplify this narrative without stronger data. --- ### Aging Population and Housing Trends Our aging population and declining birth rates suggest more transactions among older buyers in coming decades, supporting talk of a “Silver Tsunami. ” Still, not every Boomer will sell at once. For context, my ResiClub Pro Membership offers visuals on the population aged 55+, which is quite significant. --- ### Data from Twelve Counties: Lower Price Point Strength Review stats from twelve counties showing growth mainly between $400K and $500K. Smaller counties’ data need caution due to limited samples, and some areas (e. g. , San Joaquin) face volume challenges. Real estate pros should monitor price point shifts carefully and connect with investors who might sell if that mid-price segment keeps expanding. --- Thank you for reading. I’d love to hear how AI is impacting your real estate conversations and what you’re seeing at lower price levels now. If you found this helpful, please subscribe by email or RSS. Thanks for being here!