We're seeing affordability challenges reach new heights—by late Q3, the typical U.S. buyer’s monthly payment climbed to $2,600, the highest in 14 months. While mortgage rates ticked up, median sale prices stayed steady, rising about 2% year-over-year to nearly $399,000. That’s put extra pressure on buyers, and as a result, pending sales have remained flat month-over-month and are down from last year. Mortgage purchase applications have dipped slightly, and new listings also dropped a bit around the holidays, though they’re still a bit higher than this time in 2025.
What really stands out in this shifting market is how much pricing strategy matters. About 21% of active listings saw a price cut. I’ve seen firsthand that sharper, realistic pricing draws attention—while overpricing can make even great homes linger. Inventory is slowly improving too, with active supply up about 2% year-over-year to 1.5 million homes, and supply inching toward four months, though we’re not quite at a balanced market yet.
After 25 years in real estate, I know navigating these changes takes clear communication and a practical approach. Whether you’re a first-time buyer, moving up, or planning your next chapter, making smart decisions in this market comes down to understanding the numbers and staying nimble.
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