Over the years, I've seen our real estate landscape shift through many cycles, but the current environment presents a unique challenge for buyers. By late Q3, the typical monthly payment for US buyers climbed to $2,600—a 14-month high—driven by rising mortgage rates and stable home prices. The national median sale price increased about 2% year-over-year to roughly $399,000, which continues to put pressure on affordability. As a result, pending sales have held steady month-over-month and remain lower than last year.
I’ve noticed that while mortgage-purchase applications have dipped slightly, new listings—though impacted by holiday timing—are still modestly above the same period last year. Sellers are having to recalibrate: about 21% of active listings have reduced their prices, and it’s clear that strategic pricing is drawing more interest, while overpricing quickly leads to hesitation from buyers.
Active inventory has ticked up about 2% from last year, with 1.5 million homes on the market and supply nearing four months, though we’re still short of a balanced market. Having helped clients navigate both competitive and shifting markets throughout Palo Alto, Mountain View, Menlo Park, and the surrounding Peninsula, I know firsthand how crucial it is to stay informed and adaptable. Thoughtful strategy and clear communication can make all the difference in times like these.
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