While political headlines focus on tariffs, Los Angeles real estate expert Courtney Poulos contends that interest rates and pandemic-era pricing dynamics are the true forces shaping today's housing market, challenging popular narratives about an impending "reset." Poulos, founder and CEO of ACME Real Estate, dismisses widespread industry talk of "2026: The Great Housing Reset" as potentially wishful thinking, noting that tariffs have added approximately $17,500 to new home costs while broader housing reforms remain undefined.
"The contractors in my world have not seen any impact as a result of the tariffs," Poulos states, explaining that in markets like Los Angeles where new construction isn't dominant, tariff effects have been negligible. She identifies the real constraint as a fundamental mismatch: sellers who purchased homes during the COVID boom with sub-3% mortgages are often unwilling to sell at a loss, while current buyers cannot afford those same prices at 6-7% interest rates. This dynamic, she argues, is what truly stagnates inventory, not political trade policies.
Poulos believes the solution lies in creative financing and realistic rate adjustments rather than waiting for a dramatic market reset. She points to mechanisms like rate buy-downs, where developers use builder credits to prepay mortgage rates, allowing buyers to secure lower rates initially. She has recently observed rates in the fives on seven-year jumbo adjustable-rate mortgages, a development she says could motivate hesitant buyers. "When you have interest rates in the fives, all those people who are sitting on the edges are going to start making moves," Poulos predicts, emphasizing the need for balanced rate reductions that don't trigger inflation but do unlock inventory.
Contrary to doom-and-gloom forecasts, Poulos reports cautiously optimistic signs in her market. She notes increased buyer enthusiasm this fall, even into November, which is typically a quieter period. "Buyers are coming to the table who were not in the market in the fall," she says, observing that some are tired of waiting and willing to engage, while some sellers are becoming more flexible on price to facilitate deals. She cites a recent property that received 19 offers, selling for $300,000 over asking—a strong result, though she notes it shows buyers have ceilings based on borrowing costs, unlike the more frenzied $400,000-over-asking peaks seen previously.
Poulos ultimately rejects the "reset" narrative, stating, "I don't see the truth in that sentiment." Instead, she describes a market where participants are adapting to reality: buyers are returning, sellers are adjusting expectations, and financing options are slowly improving. She expresses hope that this adjustment can continue to facilitate homeownership, which she views as a primary wealth-building tool. For industry insights, Poulos hosts "The Clean Close" podcast covering real estate trends. Her brokerage, ACME Real Estate, reported $155 million in sales volume in 2024.
