6 Home Buying Misconceptions That Could Cost You an Opportunity in 2026

By Mike Rains | First Team Real Estate | Huntington Beach, California

Is Today’s Housing Market the Opportunity Buyers Have Been Waiting For?

For the past several years, I’ve watched buyers struggle with intense competition, multiple offers, rising home prices, and the frustration of watching their dream home sell before they could even make an offer.

But something has changed in the Huntington Beach and Orange County housing market.

Today, some buyers have more room to negotiate than they’ve had in years.

More sellers are considering offers that include repairs, closing cost assistance, and even credits to help buyers reduce their initial mortgage payments.

Yet many potential buyers are still sitting on the sidelines.

Why?

Because they’re making decisions based on assumptions that may no longer reflect today’s market.

After more than 23 years helping families buy and sell real estate throughout Orange County, I’ve learned something important:

Sometimes the greatest opportunities appear when everyone else is hesitant.

That’s why I’ve created this six-part video series addressing six common misconceptions about buying a home in today’s market.

Let’s explore them together.

Watch My Video Series: 6 Misconceptions About Buying a Home

In this introductory video, I explain why today’s changing housing market deserves a closer look and how buyers may be able to take advantage of negotiating opportunities that weren’t available during the competitive market of recent years.

[YOUTUBE INTRODUCTION VIDEO HERE]

Misconception #1: “Interest Rates Are Too High to Buy Right Now!”

I understand this concern.

Mortgage interest rates are significantly higher than they were just a few years ago. According to Freddie Mac, the average 30-year fixed mortgage rate was 7.32% as of October 22, 2026.

But there’s another side to this story.

Higher rates have caused some buyers to delay their purchases. That can mean less competition for homes and more negotiating opportunities for buyers who are financially prepared.

Here are a couple of financing options worth exploring.

Adjustable-rate mortgages: Some lenders offer five-year or seven-year adjustable-rate mortgages with initial fixed-rate periods and 30-year repayment schedules. Depending on the lender and market conditions, these may offer lower initial rates than traditional 30-year fixed loans.

Seller-paid 2-1 temporary buydowns: With an eligible loan, a seller may contribute funds to temporarily reduce the buyer’s mortgage payments.

For example, with a 6.5% mortgage note rate, a 2-1 buydown would calculate payments using:

• Year one: 4.5%
• Year two: 5.5%
• Year three and beyond: 6.5%

The actual note rate remains 6.5%, and the buyer must qualify under the lender’s requirements.

The important point is that today’s higher interest rates don’t necessarily eliminate your opportunities.

My advice: Don’t simply ask what the interest rate is. Ask what you can negotiate and what financing options might make the purchase affordable.

Misconception #2: “I Can’t Buy Because I Don’t Have 20% Down!”

This is one of the biggest misconceptions I hear.

Many buyers believe they must save 20% of the purchase price before they can even consider homeownership.

That’s simply not true!

Depending on your qualifications and the property you’re purchasing, several financing options are available.

VA loans: Eligible veterans, active-duty service members, and certain surviving spouses may qualify for financing with no down payment. VA loans also don’t require monthly mortgage insurance.

FHA loans: Qualified buyers may purchase with as little as 3.5% down.

Conventional loans: Certain programs allow down payments as low as 3%, while other borrowers may choose 5%, 10%, or 15%.

There are also down-payment assistance programs worth exploring.

Of course, lower down payments can mean higher monthly costs, and mortgage insurance is generally required on conventional loans with less than 20% down. FHA loans have their own mortgage insurance requirements. VA loans generally avoid monthly mortgage insurance but may include a funding fee.

My advice: Before deciding you can’t afford to buy, speak with a knowledgeable mortgage professional and understand all your available options.

You may be closer to owning a home than you realize!

Misconception #3: “I Don’t Want to Get Into a Bidding War and Overpay!”

Remember when buyers were offering tens of thousands of dollars above asking price, waiving contingencies, and competing against multiple other buyers?

For many, it was an exhausting experience.

But today’s market provides a different environment for certain properties.

With affordability challenging buyer demand, sellers may have to work harder to attract qualified purchasers.

Depending on the neighborhood, condition, and asking price, buyers may have opportunities to negotiate:

• A lower purchase price
• Repairs following a home inspection
• Seller credits toward closing costs
• Assistance with eligible mortgage buydown costs
• More favorable transaction terms

Not every home will present these opportunities. Beautifully maintained, competitively priced homes in desirable Huntington Beach neighborhoods can still generate significant interest.

But the market is no longer operating exactly as it did during the peak bidding-war years.

Here’s another thing to consider.

If mortgage rates decline, more buyers could return to the market, potentially increasing competition.

That isn’t guaranteed, but it’s a possibility worth considering.

My advice: Instead of fearing another bidding war, explore where today’s market may offer you negotiating leverage.

Misconception #4: “Interest Rates Have Gone Up, So Home Prices Must Be Falling!”

This one surprises people.

Many assume that when mortgage interest rates rise, home prices automatically decline.

But Orange County’s housing history tells a more complicated story.

In 2020 and 2021, mortgage rates were historically low, and home prices climbed rapidly.

Then mortgage rates increased substantially during 2022 and 2023.

Did Orange County home prices automatically collapse?

No.

Despite higher borrowing costs, Orange County experienced further increases in its median home price in subsequent years.

According to California Association of REALTORS market data, the median price of an existing single-family home in Orange County reached approximately $1.48 million in September 2026, about 5.6% higher than a year earlier.

Now, that doesn’t mean every property increased in value. Individual home prices can rise or fall, and median prices also reflect the types of properties sold.

But it demonstrates an important lesson.

Mortgage rates are only one factor influencing home prices.

Inventory, employment, population trends, demand, financing conditions, and the desirability of local neighborhoods all play a role.

Here in Huntington Beach, our coastal location and established neighborhoods also contribute to the dynamics of the local housing market.

My advice: Don’t assume home prices will fall simply because interest rates are higher. Evaluate the individual property, comparable sales, and your negotiating opportunities.

Misconception #5: “Home Prices Depend on Who’s in the White House!”

Every election cycle, I hear some version of this statement:

“I’m going to wait until after the election to buy.”

Whether someone favors a Republican or Democratic administration, the concern is understandable.

Government policies can influence inflation, taxes, lending conditions, and broader economic confidence.

But here’s what history shows us.

Orange County real estate has experienced long-term appreciation through both Republican and Democratic presidential administrations.

We’ve also experienced recessions, financial crises, and years when property values declined.

The housing downturn of 2006 through 2008 was particularly painful, and the recovery took years.

So I’m certainly not suggesting real estate values always increase.

Rather, the lesson is that long-term housing trends are shaped by many economic and local factors—not simply which political party occupies the White House.

For buyers in Huntington Beach, I believe there are more practical questions to consider.

Can you comfortably afford the payment?

Does the home fit your family’s needs?

How long do you expect to live there?

And are there opportunities to negotiate favorable terms?

My advice: Make housing decisions based on your family’s needs, financial readiness, and local market conditions rather than trying to predict the next election’s effect on home prices.

Misconception #6: “It’s Cheaper to Rent Than to Buy!”

Here’s something I want to acknowledge right away.

Sometimes renting really IS cheaper than buying.

Particularly in Huntington Beach and other desirable Orange County communities, monthly ownership costs may be significantly higher than renting a comparable property.

But monthly costs aren’t the entire story.

Renting provides a place to live, often with flexibility and fewer maintenance responsibilities.

Homeownership provides a place to live with the potential to build long-term wealth.

When you own a home, you may benefit from:

Building equity: A portion of your mortgage payment generally reduces the outstanding principal balance.

Potential appreciation: Over time, your home’s value may increase, building additional equity.

Payment stability: With a fixed-rate mortgage, your principal and interest payments remain consistent, although taxes, insurance, and other expenses can change.

Greater control: You can personalize your home, make improvements, and establish roots in your community, subject to applicable rules and restrictions.

Potential tax benefits: Depending on your financial circumstances, certain mortgage interest and property tax deductions may apply.

Of course, ownership also involves maintenance, insurance, property taxes, possible HOA fees, and transaction expenses.

And there’s no guarantee that buying will outperform renting and investing the difference.

That’s why I always encourage buyers to look at their complete financial picture.

My advice: Don’t just ask what’s cheaper this month. Ask what makes sense for your family over the next five, ten, or twenty years.

The Real Opportunity in Today’s Huntington Beach Housing Market

Throughout these six misconceptions, there’s a common theme.

Many buyers are waiting for the market to become perfect.

They’re waiting for lower rates.

They’re waiting for lower prices.

They’re waiting for less competition.

Or they’re waiting until they’ve saved more money.

But there’s no such thing as a perfect housing market.

Every market presents challenges—and opportunities.

What makes today’s environment interesting is that some sellers are more willing to negotiate than they were during the highly competitive market of recent years.

A home that’s been sitting on the market might present an opportunity.

A seller who needs to relocate might be willing to discuss favorable terms.

Or a property needing some cosmetic improvements might represent a better overall value than a completely remodeled home.

The key is recognizing where those opportunities exist and knowing how to negotiate them.

Let’s Explore Your Home Buying Opportunities

I’ve lived in Huntington Beach since 2007 and have helped buyers and sellers throughout Orange County for more than 23 years.

My business has always been built around relationships, referrals, and helping people make informed real estate decisions.

I’m not here to convince everyone that they should buy a home today.

I’m here to help you understand your options and determine whether buying makes sense for you and your family.

If you’ve been thinking about buying in Huntington Beach, Fountain Valley, Costa Mesa, or anywhere in Orange County, I’d welcome the opportunity to talk.

Let’s explore what today’s market could mean for YOU.

Mike Rains

Associate Broker | First Team Real Estate

California DRE #01329985

Contact Mike Rains

Market information reflects sources available as of October 2026. Financing terms, seller concessions, loan eligibility, and local conditions vary. Consult your lender and appropriate tax professionals regarding your circumstances.